Quick answer
Minimum turnover is the lowest level of business sales a lender will accept before it considers an application at all. It's an eligibility gate, usually stated as a monthly or annual figure and checked against bank statements or BAS over a set recent period. Meeting it doesn't decide how much you can borrow; it simply gets you through the door. Unsecured and fintech lenders lean on it most, while property-secured lenders often care less.
Key points
- A pass-or-fail threshold, separate from the calculation of your loan size
- Can be stated monthly or annually, and tested as an average or month by month
- Measured on real trading receipts, so transfers and loan proceeds don't count
- Seasonal businesses can pass or fail depending on which months fall in the window
Before a lender looks at your credit file, your security or your plans, it often asks a simpler question: does enough money come through this business? Minimum turnover is the answer it’s looking for. It’s the floor on sales below which the lender won’t assess an application, however good the rest of it looks.
Why lenders set a floor
business.gov.au defines revenue, also called turnover, as what a business earns before expenses, tax and other deductions. For an unsecured lender, that inflow is the main thing standing behind the loan. There’s no property to sell if repayments stop, so the lender wants confidence that there’s enough trading activity to carry a regular deduction without strain. A turnover floor screens out businesses where even a small loan would take too large a bite.
That screening matters more than ever as lending has shifted. The RBA noted in October 2025 that non-banks have been taking a rapidly growing slice of small business loans since early 2022 (most noticeably at the small end of the market), and those lenders tend to rely on turnover data rather than full financials. A clear entry threshold is how they keep assessments fast.
The fine print in how it’s measured
Two lenders can quote the same minimum and test it quite differently.
| Question | Why it changes the answer |
|---|---|
| Monthly or annual figure? | An annual minimum lets one strong quarter carry a weak one; a monthly figure may not |
| Average or every month? | Some lenders accept an average over the period, others want each month above the line |
| How long is the look-back? | Three, six or twelve months of statements produce very different averages for uneven businesses |
| Including or excluding GST? | Taking out GST lowers a registered business’s figure by one-eleventh |
| What gets stripped out? | Owner top-ups, transfers, refunds and loan funds are removed from deposits |
If your business is seasonal or lumpy, ask exactly which test applies before applying. A lender’s published figure only tells part of the story. Our annual turnover entry explains how the raw number is calculated.
Worked example: same business, different month
A surf school on the New South Wales north coast turns over about $260k a year, and most of it lands between October and April, at a little over $30k a month. The five cooler months from May to September bring in around $8k each.
Suppose a lender wants average monthly turnover of $15k across the last six months of statements.
- Applying in October, the window covers April to September. One busy month and five quiet ones average roughly $12k. Below the line.
- Applying in March, the window covers September to February, the heart of the season. Five busy months and one quiet one average about $27k. Clear pass.
Nothing about the business changed except the calendar. That’s why seasonal operators often do better by planning finance before the quiet months, or by choosing a lender that assesses a full twelve months. See business loans for seasonal businesses for more.
Close to a lender’s threshold and not sure which way it falls? Let us look at your figures.
If you’re below the minimum
- Find a lower threshold. Minimums vary widely across lenders and products.
- Offer security. Lenders secured by property usually give equity and an exit plan more weight than turnover, which can open options for low-turnover businesses.
- Wait for the window to improve. If strong months are just ahead, a short delay can change the outcome.
- Don’t scattergun. Several declined applications in quick succession can leave credit enquiries that make the next lender more cautious.
Banks remain worth asking first if your business is profitable and well documented; they assess the full picture and often provide the cheapest money. If turnover thresholds keep tripping you up, our business borrowing power calculator and the unsecured business loans page show what your sales might realistically support.
Not sure which lenders your turnover suits?
Rather than applying blind and hoping you clear the bar, tell us your average monthly sales, how long you’ve traded and what you need the money for. Filling it in takes a minute, and asking leaves no mark on your credit record. Nothing you send is passed around the market, and a real member of our team reviews it before phoning you. Give us real turnover numbers, including the slow months, and we can steer you towards a lender whose threshold you’ll genuinely meet.
Frequently asked questions
What counts as turnover for a lender's minimum?
Money the business earns from selling its goods or services. Lenders generally exclude transfers between your own accounts, loan drawdowns, tax refunds and money the owner puts in. Many also look at figures excluding GST.
Is minimum turnover the same as the amount I can borrow?
No. The minimum is just the entry requirement. The loan amount is worked out separately from your turnover, cash flow, existing debts and, for secured loans, the security.
What if my turnover is just below the minimum?
Look at lenders with a lower threshold, consider a secured option where turnover matters less, or wait a month or two if your trailing figures are about to improve. Applying repeatedly and getting declined can leave several enquiries on your credit file.
Do banks have a minimum turnover?
Banks focus more on profit, financial statements and security than a single sales threshold, though some business products and online bank offers do set one. Ask the bank directly what its criteria are for the product you want.
Does not being registered for GST affect this?
It can. GST registration is compulsory once GST turnover reaches $75k, so an unregistered business tells a lender its sales are probably under that level. Some lenders also use BAS to verify turnover, which unregistered businesses don't lodge.