How Much Business Funding Can You Get? Loan Amounts Explained

Introduction: Understanding Loan Amounts and What You Qualify For

One of the most common questions business owners ask is:

“How much funding can I get approved for?”

Many assume they can receive 2–3 times their monthly revenue, but in reality, lenders base loan amounts on your revenue and repayment ability.

For working capital loans, businesses typically qualify for an amount equal to an average of their deposits over the last 4 months. Dependent on other metrics (like time in business and credit) this can end up higher or lower.

Why? Because lenders assess risk, cash flow, and debt obligations to ensure your business can manage repayment without financial strain.

In this guide, you’ll learn:

• How lenders calculate your loan amount based on revenue, cash flow, and risk
• Why alternative lending provides faster approvals than banks & SBA loans
• How to qualify for the maximum funding possible

If you’re ready to explore funding options, SCG Funding works with a network of lenders to help businesses secure working capital loans from $10K–$1M with flexible terms from 6–36 months.

How Lenders Determine Your Loan Amount

1. Why Loan Amounts Are Based on Monthly Revenue

Lenders typically approve loan amounts equal to an average of their deposits over the last 4 months. Dependent on other metrics (like time in business and credit) this can end up higher or lower. This ensures repayment is manageable while maintaining healthy cash flow.

📌 Example:

• Business revenue: $50K/month
• Typical loan approval range: $40K–$65K
• Why not more? Borrowing significantly above revenue could create repayment issues and cash flow struggles.

Lenders set these limits because working capital loans have terms between 6–36 months, meaning loan payments must align with your business’s ongoing cash flow.

📌 Related: What Is a Working Capital Loan?

2. Risk Factors That Affect Your Loan Amount

Besides revenue, lenders consider several risk factors when determining how much funding your business qualifies for:

✅ Cash Flow Stability – Consistent revenue means higher approval amounts. Lenders review 4 months of business bank statements to ensure steady deposits.

✅ Debt-to-Income Ratio (DTI) – If your business has high existing debt, lenders may lower the loan amount to avoid over-leveraging.

✅ Time in Business – Businesses operating for 6+ months are more likely to receive higher funding than newer businesses.

✅ Industry Risk – Some industries (typically seasonal or businesses with high volatility) are considered higher risk, meaning they may receive lower funding offers.

📌 Related: See If You Qualify for a Business Loan

3. Alternative Lending vs. Traditional Banks: What’s the Difference?

Business owners often turn to banks first, but traditional banks focus on credit scores, profitability, and collateral—making approvals more difficult and time-consuming.

Key differences between alternative lenders and banks:

• Approval Speed: Banks may take 4–8 weeks to process applications, whereas alternative lenders often approve as soon as 24–48 hours.
• Approval Criteria: Banks typically require strong credit (680+), 2+ years in business, and profitability. Alternative lenders focus more on business revenue and cash flow rather than just credit.
• Collateral & Guarantees: Banks often require personal guarantees and business collateral to secure a loan. Alternative lenders offer unsecured working capital loans based on revenue, eliminating the need for collateral.
• Loan Amounts & Terms: Banks can issue large, long-term loans, but these are harder to qualify for. Alternative lending provides working capital loans up to $1M with 6–36 month terms, making them a flexible option for businesses needing fast funding.

📌 Related: How Alternative Lending Compares to Bank Loans

How to Qualify for the Maximum Loan Amount

To increase your loan approval amount, optimize your financials before applying:

✅ Maintain Strong Revenue – Keep monthly deposits consistent and avoid large fluctuations.

✅ Improve Cash Flow – Keep a positive daily balance and avoid overdrafts or NSF fees.

✅ Lower Existing Business Debt – Reducing your debt-to-income ratio increases lender confidence in your repayment ability.

✅ Improve Your Business Credit Score – Although revenue matters more, having a strong business credit profile can improve loan terms.

📌 Need Help Improving Your Credit? SCG offers a Credit Repair Program to help business owners qualify for better loan terms.

Common Questions About Business Loan Amounts

1. Can I get a loan for 3× my monthly revenue?

Unlikely. Lenders cap loan amounts to ensure repayment is manageable.

2. What if my business is seasonal?

Lenders average your last 4 months of revenue to determine if an approval is possible. If you are a seasonal business, focus on being proactive rather than reactive and apply before cash flow slows.

3. Can I get a loan with bad credit?

Yes! SCG Funding connects businesses with lenders that approve loans based on revenue—not just credit scores. If your revenue is strong, you can qualify even with a lower credit score.

📌 Apply here: Start Your Application

Final Thoughts: Get the Right Loan for Your Business

Securing the right business loan amount requires balancing funding needs with repayment ability.

✅ Most businesses qualify for an average of their deposits over the last 4 months. Dependent on other metrics (like time in business and credit) this can end up higher or lower.

✅ Alternative lenders provide faster approvals than banks

✅ Optimizing cash flow and revenue stability can help you secure more funding

📌 Want to see how much you qualify for? Apply today for fast business funding: Start Your Application