How much can my business borrow?
Enter your EBITDA and existing repayments to see an indicative maximum loan, using a debt service cover test of the kind many lenders apply.
Indicative borrowing capacity
€802,000
- Affordable monthly repayment
- €16,667
- Cover ratio assumed
- 1.25×
Based on keeping profits at least 1.25 times your total loan repayments, a common lender benchmark. Lenders also weigh turnover, credit history, security and sector, so real offers can be higher or lower.
Check eligibility for this amountIllustrative only. Actual rates, fees and terms depend on your circumstances and the lender. This is not an offer of finance.
How this calculator works
The calculator works out how much your company could repay each year while keeping a cover ratio of 1.25×, takes off your existing repayments, and turns what is left into a loan amount at the rate and term you choose.
For illustration only: with EBITDA of €300,000 and existing repayments of €40,000 a year, the affordable repayment is about €16,670 a month. At an example 9% rate, that supports roughly €524,000 over 3 years or €802,000 over 5 years.
The result is a rough guide. Lenders also look at turnover, security, credit history and sector, and some cap unsecured lending at a share of annual turnover.
Want to understand the product first? Read our guide to unsecured business loans.
How much can my business borrow?: common questions
How do lenders decide how much to lend?
They test affordability from profits and bank statements, then look at security, credit history on the Central Credit Register, existing debt and the purpose of the loan. This calculator uses a debt service cover test of 1.25×, a common benchmark, but each lender applies its own rules.
Can a start-up or newer company borrow through you?
Start-ups registered as limited companies in Ireland can apply. Most lenders look for some trading history, so options may be fewer for a new company. Each lender sets its own minimum trading period. For start-up funding, you can also talk to your Local Enterprise Office, Microfinance Ireland, Enterprise Ireland or your own bank.
Is there a maximum based on turnover?
Some unsecured lenders cap borrowing at a share of annual turnover, which varies by lender. Merchant cash advances are usually linked to card takings, and secured or asset-based lending also depends on the value of the security. The calculator does not apply a turnover cap.
Does the SBCI scheme lend more?
It can spread repayments further. The Growth and Sustainability Loan Scheme offers €25,000 to €3m over 7 to 10 years, and a longer term lowers annual repayments, so the same profits can support a larger loan. Lenders still assess affordability. You get an eligibility code from the SBCI and apply directly to a participating lender; Welcome Finance does not arrange SBCI loans.
Why is the result only a guide?
Because it uses one cover ratio, one rate and one term, and ignores fees. Real lenders also consider sector, security, credit records, existing commitments and how stable your income is. A lender may offer less, or more, than this estimate, and approval is never guaranteed.
What if my bank says no?
Ask for the reasons in writing and use the bank’s appeal. For refusals by AIB, Bank of Ireland or PTSB of €1,000 to €3m, you can apply to the Credit Review Service. We can also approach other lenders.
Check in 60 seconds
Get real figures for your company
Checking involves no credit search and is not recorded on the Central Credit Register. No obligation.
- No credit search, not recorded on the Central Credit Register
- One request, several lenders: we’re a broker, not a lender
- For limited companies registered in Ireland
- No fees for your company: we’re paid commission by the lender
Step 1 of 3 · about 60 seconds
Questions and answers
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