Key highlights
- Borrowing capacity depends on several moving parts
- Income, commitments, credit history and ABN age all count
- The vehicle acts as security and shapes the advance
- Borrowing the max isn't always right for your cash flow
- Ask Simon for a picture tailored to your business
One of the first questions business owners ask is how much they can actually borrow for a vehicle. The honest answer is that it depends on several moving parts rather than a single number. Overdrive helps you understand what shapes your borrowing capacity and compares lenders to find the right fit.
What do lenders consider for borrowing?
Your borrowing capacity generally reflects your business income, existing commitments, credit history and ABN age. Lenders want to see that repayments are comfortably affordable, so a strong, stable income tends to support a higher amount, subject to lender criteria.
How do the car and deposit affect borrowing?
The type, age and value of the vehicle influence how much a lender will advance, since it acts as security. Offering a deposit or property security can also lift the amount available and may improve your terms.
How much car finance can you sustain?
Just because you can borrow a certain amount does not mean it is the right amount for your cash flow. Consider your future workload and running costs, and check with your accountant or registered tax adviser about affordability and tax impacts.
For a clear picture tailored to your business, ask Simon for an obligation-free quote. It is a soft check that won't affect your credit score, so contact Overdrive to find out what you may be able to borrow.
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