Bank Financing
Money borrowed from a bank to buy a business. Banks typically lend 50-70% of the purchase price at commercial interest rates over 5-10 years. Requires business assets as security.
- How it's worked out
- Purchase Price × Bank LVR %
- Which way is better
- Read it in contextNeither higher nor lower is better on its own. Read it alongside the measures around it.
Written by Mandy Walker, founder of Focus on Cash. Updated October 2026. This explanation comes from the glossary inside Focus on Cash, so it matches the words you see in the app.
Related measures
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