Switchboard Finance | Business & Equipment Loans Australia

Turnover

Turnover is the total income a business generates over a financial period, typically 12 months. Lenders review turnover to assess cashflow capacity, affordability, and repayment ability. It is a key factor for Low Doc Asset Finance, Working Capital Loans, Business Lines of Credit and Invoice Finance. Relevant insights include Low Doc Cashflow Loans, Cashflow Mistakes SMEs Make, and Business Cashflow System.

Turnover indicates business performance and stability. Lenders use turnover to determine Borrowing Capacity, Affordability, and appropriate Credit Limits. Accurate turnover records are critical for SMEs in the Tradie Hub, Truckie Hub, Café Hub, Whitecoat Hub and the Business Owners Finance Hub.

Review total revenue from sales and services over a financial period.
Examine bank statements, BAS, and trading history to verify figures.
Compare turnover to operational costs and debt obligations.
Assess affordability and repayment capacity for loan approvals.
Use turnover as part of a broader financial assessment including cashflow, servicing, and trading history.

What is considered turnover?

Turnover is the total income generated by a business from sales and services during a financial period, before expenses.

Why do lenders check turnover?

Lenders check turnover to assess financial stability, repayment ability, and to determine borrowing capacity.

Does turnover include all income sources?

Yes — all business income including sales, services, and any other regular revenue streams is included.