poppyStart with the repayment, not the loan
The amount you can borrow depends mostly on the repayment your business can afford. For a short-term loan with weekly repayments, the question is: what share of a normal week’s sales can go to the loan without squeezing wages, rent, stock and tax?
A simple way to estimate it
- Work out your average weekly sales: monthly sales × 12 ÷ 52.
- Look at your quietest months too, not just the average.
- Subtract your regular costs and any existing loan repayments.
- Decide on a weekly repayment you could still manage in a quiet week.
- Multiply by the number of weeks in the term to get a rough total to repay.
A worked example
A café has average sales of $55,000 a month, or about $12,700 a week. After its regular costs, the owners are comfortable putting about $950 a week towards a loan, which is about 7.5% of a normal week’s sales. Over 12 months (52 weeks), that’s about $50,000 in total repayments. Depending on the lender’s pricing, that could support a loan of around $40,000.
These figures are illustrative. See a similar loan example, or try your own numbers in the business loan calculator.
Other things lenders consider
- How steady or seasonal your sales are
- Other loans or funding the business already repays
- Overdue tax or supplier debts
- How long the business has been trading
- What the loan is for, and whether it’s likely to increase income
How Poppy sizes a loan
We look at your actual bank data, including your quieter weeks, and size the loan so the fixed weekly repayment is a comfortable share of your weekly sales. If we think a smaller amount would be safer, we’ll tell you.