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How Much Business Loan Money Can I Borrow? Guide To DTR, DSCR, & Other Considerations

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Chelsea Krause

Chelsea Krause

Content Strategist - Accounting & eCommerce
Chelsea Krause is a writer who has specialized in accounting for over three years and is a QuickBooks Certified User. She has a BA in English & Creative Writing from George Fox University and studied at the University of Oxford as well. She has been quoted in Forbes and her work appears in Startup Nation, Small Business Bonfire, and Women on Business.
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2 Comments

Responses are not provided or commissioned by the vendor or bank advertiser. Responses have not been reviewed, approved or otherwise endorsed by the vendor or bank advertiser. It is not the vendor or bank advertiser's responsibility to ensure all posts and/or questions are answered.

    Stacey Jackson

    Hi, Thank you for this article. I am trying to determine If I am able to afford paying back a loan. However I do not have any business or personal debt, so I am not sure if the above mathematical equations pertain to my business or me. Is there another equation to determine if I am able to afford a loan that does not require debt?

    Thank you!
    Stacey

      This comment refers to an earlier version of this post and may be outdated.

      Chelsea Krause

      Hi Stacey,

      Thanks for reaching out! The mathematical equations would still pertain to your business. Odds are, with no business or personal debt, you are in a good position to take on a loan, so long as you generate enough income to cover the payments. To see if you can afford the monthly payments, go to the section, “How To Calculate The Debt-To-Income Ratio.” Take the mortgage example, and instead of using data from a potential mortgage, put in your own data on the loan amount you want. This way, you’ll be able to see if you can afford the payments on a loan of that size or not.

      Let us know if you have any other questions and best of luck with the loan application process!

      -Chelsea Krause

        This comment refers to an earlier version of this post and may be outdated.

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