Revenue
Revenue is the total income a business generates before expenses. Lenders use revenue trends to determine borrowing capacity, financial strength, and ability to service Business Loans, Working Capital Loans, and Invoice Finance. Revenue helps indicate growth, stability, and overall business health.
Related terms: GST Turnover, OPEX, Cash vs Accrual. Relevant hubs: Business Owners Finance Hub.
Why Revenue Matters
Revenue is a core indicator of business performance and loan-servicing ability. Consistent or growing revenue strengthens finance applications, while declining revenue often triggers additional lender scrutiny.
- Shows business demand and sales strength
- Helps determine borrowing capacity
- Influences loan approval amounts
- Helps lenders assess sustainability and risk
- Used in cashflow modelling and affordability tests
If you’re comparing different cashflow tools, the Business Cashflow System (Working Capital Loans, Line of Credit & Invoice Finance) guide breaks down how revenue trends feed into approvals across multiple products.
How Revenue Is Measured
- Based on total sales before expenses
- Can be measured monthly, quarterly or annually
- Used in BAS reporting for GST-registered businesses
- Supports financial statements and loan applications
- Often cross-checked with bank statements and invoicing systems
Strong revenue supports approval strength for Business Line of Credit and cashflow products like Invoice Finance. For a deeper dive into cashflow lending, see the Working Capital Loans 2025 overview .
Official reference: business.gov.au