Planning
How much financing can my business afford?
A simple way to think about payments relative to your revenue and margins.
Written by Fundrillo Editorial TeamReviewed by [VERIFIED REVIEWER — financial-services]
Last updated August 1, 20267 min read
Borrowing more than you can comfortably repay creates strain. A simple way to think about affordability is to look at payments against your revenue and margins.
Start with your free cash flow
Estimate what is left after your regular operating costs each month. A financing payment should fit inside that cushion with room to spare for slower periods.
Stress-test the payment
- Could you make the payment in a slow month?
- What happens if a large customer pays late?
- Does the funding generate enough return to cover its cost?
Important to know
Use our calculator to sketch scenarios. It is educational only and not an offer.