Key highlights
- Borrowing capacity is several factors weighed together
- Strong, steady cash flow lifts your capacity
- Existing loans and leases reduce the room available
- Trading history, credit and vehicle type all shape the figure
- Request an obligation-free, indicative quote across 80+ lenders
Borrowing capacity is simply how much a lender is willing to advance for your vehicle. It is not a single number but the result of several factors weighed together. Understanding them helps you approach finance with realistic expectations. Overdrive guides ABN businesses through the process.
How does cash flow affect borrowing capacity?
Lenders look at what your business earns and how consistently, often through financial statements or bank activity. Strong, steady cash flow generally supports a higher capacity, while variable income may be assessed more conservatively.
How do existing commitments reduce capacity?
Current loans, leases and other obligations reduce the room available for a new repayment. Lenders subtract these commitments to judge what you can comfortably service alongside them.
How do trading history and the asset matter?
Time in business under your ABN, your credit profile and the type and age of the vehicle all shape the figure. A newer, mainstream vehicle typically supports capacity more readily than an unusual or older one, subject to lender criteria.
How do you find your borrowing figure?
Rather than estimating, request an obligation-free, indicative quote. Overdrive will review your position across 80+ lenders and give you a realistic sense of your capacity.
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