Planning new debt?
How much can your business borrow?
Before you sign for new debt, one question matters: do your actual numbers carry it? From $100,000 upwards, we model the facility you have in mind into your real financials, in the same serviceability workbook a commercial credit team would build. You get the covenant maths, the stress tests and a written read on which facility types the numbers support. We do not arrange credit. You get the answer before anyone applies for anything.
Why borrowing blind costs real money
- Capacity guessed from turnover or an online calculator, not from the actual financials
- The new repayment stacked on top of existing commitments nobody has consolidated
- Serviceability never tested at the lender's assessment rate, which sits well above the advertised one
- The wrong facility shape for the need: long-term money for a short-term gap, or the reverse
- Multiple entities, and no single view of what the group already carries
None of these are answered by applying and hoping. They are answered by modelling the debt into your numbers first. That is what this assessment does.
You are paying for the answer, not for a particular answer.
Every figure in the workbook is supported by source documents: bank statements, BAS lodgements, ledger detail, statements for the facilities you already carry. We never massage numbers toward an approval. If the numbers do not support the debt you have in mind, the assessment says so plainly, with the exact changes that would move it, and the fee is the same.
The deliverable
One workbook. Your debt, modelled in.
This is the same lender-style serviceability workbook we build for business acquisitions, applied to the business you already run plus the facility you are planning. It answers the question every credit assessor asks: can this business pay the new debt back, even when things get tighter?
The proposed repayments go in at the lender's test rate, on top of everything you already carry. Covenants are tested, sensitivities are run, and the workbook shows where the limits sit. The inputs stay editable, so you and your advisors can test scenarios after we hand it over.
$1,850 · 5 business days
What you get
- The proposed facility modelled into your actual financials, not a template
- Repayment schedule at the lender's test rate, not the advertised rate
- Debt service with DSCR and ICR covenant testing
- Existing commitments consolidated, so the new debt is tested on top of the real position
- The reverse view: the maximum debt the numbers support at the test rate
- A rate sensitivity grid, tested well above today's rates
- Revenue and earnings stress tests, with a clear verdict on each
- A family tree and group map where more than one entity is involved
- A written read on which facility types the numbers support
- A debrief call with Nicholas, with the inputs left editable for your advisors
The facility read
What the numbers can support
Different facility types are carried by different parts of your financials. The workbook tests the shape you have in mind against your actual numbers, and the written read states which structures hold up.
Term loan
Tested against free cash flow after existing commitments. The model shows whether amortising repayments hold at the assessment rate, and over what term.
Equipment and asset finance
Tested where the debt buys an income-producing asset. The model shows whether the earnings uplift and the asset's working life carry the repayments.
Overdraft and working capital
Tested against the cash cycle. The model shows the size of the gap between paying suppliers and getting paid, and what limit that gap actually justifies.
Invoice finance
Tested against the debtor book. The model shows whether receivables quality and concentration support an advance rate that is worth the cost.
Property-backed lending
Tested where property security sits behind the facility. The model shows the servicing position; questions about the security itself stay with the lender and their processes.
This is analysis, not credit advice or a recommendation to enter any credit contract: Andorra Advisory Group does not arrange credit and is not a credit representative, and the written read states only which facility structures your numbers support, with any application a matter for you, your own broker, or The Lending Lab Pty Ltd.
It works
Four matters where new debt was the question.
Different industries, same discipline. The numbers were modelled before the money moved.
The franchisee planning a much larger site
Operators of a franchise store wanted a second, much larger site, and a major bank had already knocked the idea back on serviceability. The case was rebuilt from the network's own sales reporting and stress-tested at a conservative rate, with roughly a 20% revenue buffer before cover broke.
The finance approved and the larger site secured. Full case study
The expansion no lender wanted to touch
An experienced operator wanted an established restaurant franchise on the Central Coast after a non-bank lender and major banks had all declined it. A group servicing workbook consolidated the business and personal position, income adopted conservatively, repayments sensitised above the offered rate.
Servicing passed with a clear surplus, and the site was acquired. Full case study
The capacity question, answered
A veterinary practice owner had been capped at $3.0m because lenders could not read his income. Line by line through the P&L, every adjustment evidenced, and the existing debt restructured to support the higher facility.
Assessed capacity rebuilt to $6.5m. Full case study
The one where the answer was no
A multi-entity family group wanted to borrow, and the consolidated workbook, family tree included, showed no servicing evident. The verdict was documented within days, with the exact changes needed before any facility could pass.
A fast, documented no, for the same fee. Full case study
More detail on all of these, on the case studies page
The veterinary matter is shared with the client's consent; the other matters are anonymised and figures materially altered. Outcomes depend on individual circumstances and lender criteria.
How the assessment works
Send the numbers
Your last two years of financial statements, year-to-date management accounts, statements for every existing facility, and the amount and purpose you have in mind. Every adjustment we make must be evidenced, so the source documents are the raw material.
We model the debt in
The proposed facility goes into your actual financials, repayments run at the lender's test rate, covenants and sensitivities are worked through. Nicholas scopes your matter, reviews every finding and takes your debrief call.
The answer in 5 business days
The workbook, the written read on which facility types the numbers support, and a debrief call to walk through it. If the numbers do not support the debt, you hear that instead, for the same fee.
After the answer
Who takes it to the lender?
We do not arrange credit at any size, so the path from workbook to application depends on the facility.
Below $500,000 property-backed, or $1,000,000 without
The workbook and the written read are yours. You, or your own broker, take them to the lender. We arrange nothing at this size, and there is nothing else you need to buy from us.
At or above those minimums
If you want the application handled as well, The Lending Lab Pty Ltd, a separate broking business, can take it on. That relationship is disclosed in writing, and a fee discount may apply when The Lending Lab is engaged on the same matter.
Debt Capacity Assessment · $1,850 · 5 business days
Fixed fee, no contingency, GST excluded. If the numbers do not support the facility you have in mind, we tell you that instead, and the fee is the same.
Common questions
No. We do not arrange credit and we are not a credit representative. Finance applications are handled by The Lending Lab Pty Ltd, a separate broking business, and that relationship is disclosed in writing. Its broking minimums are $500,000 with property security, or $1,000,000 without. Below those minimums, the workbook and the written read are yours, and you or your own broker take them to the lender. At or above them, The Lending Lab can handle the application, and a fee discount may apply when it is engaged on the same matter.
No. From $100,000 upwards, getting the facility type, the term or the timing wrong costs more than the assessment does. Below that, the fixed fee rarely earns its keep, and if that is your situation we say so on the scoping call rather than take the engagement.
Then that is the answer you get, in writing, with the exact changes that would move it, and the fee is the same. We never massage numbers toward an approval; every adjustment is supported by source documents. You are paying for the answer, not for a particular answer. A fast, documented no has saved clients from expensive mistakes more than once.
Yes, it is built for exactly that. The inputs stay editable, your broker can lodge from it with any lender, and with your written consent either of them can join the debrief call. Anything with tax or structuring implications is flagged for your accountant, never advised on by us.
Yes. Your existing facilities are modelled alongside the proposed position, so the workbook shows what the consolidated numbers support. A restructure of existing debt often changes the answer; it is one of the things that took a vet practice owner's assessed capacity from $3m to $6.5m. The workbook shows the servicing position under each structure and leaves the decision with you and your broker.
For scoping, just the last two years of financial statements and the amount and purpose you have in mind. Once you engage us, the standard information request covers year-to-date management accounts, BAS lodgements, bank statements, statements for every existing facility, and the ownership structure where more than one entity is involved. The fixed fee assumes that request is met, and gaps are flagged before any extra time is spent.
Same workbook, different scenario. The Model is built around an acquisition: a purchase price and a target's financials. The Debt Capacity Assessment is your existing business plus a proposed new facility. Same fee, same five business days. And if the borrowing later becomes part of a lender submission, the analysis flows straight into the Bank-Ready Pack.