Up to $5,000,000
11.5% to 15% variable, 13.5% to 16.5% fixed (Rate depends on the loan amount and term length)
120 months
If you’re unsure whether your business will qualify for a traditional bank loan, consider the SBA 7(a) loan instead. Backed by the Small Business Administration (SBA), this loan finances amounts up to $5,000,000 and comes with flexible qualifying standards and capped interest rates.
If you choose to go this route, you’ll apply through a bank or online lender, who will fund the loan. For its part, the SBA guarantees a percentage of the loan amount in the event that you default, making it easier for the lender to approve you.
However, in exchange for that reassurance, you’ll need to go through the SBA application process. Be aware that SBA processing times are much slower than other lenders and you’ll likely be on the hook for providing both collateral and a personal guarantee.
Read our full SBA 7(a) review.
In order to qualify, you’ll need to meet the SBA’s criteria of:
Up to $5,500,000
Usually totaling 3.00% of the amount financed
Up to 300 months
When you need to use a commercial loan to purchase fixed assets, like real estate or large equipment, consider an SBA 504/CDC loan. For this loan program, the SBA works in conjunction with community development centers (CDCs) to provide funding that has higher borrowing caps and longer loan terms than the traditional SBA 7(a) loan.
However, in exchange, you’ll be required to make a 10% down payment on the loan. Plus, you’ll face additional use restrictions and added requirements around using the funds to facilitate job creation.
Read our full SBA 504/CDC loan review.
In order to qualify, you’ll need to meet the SBA’s criteria of:
$5,000 to $1,500,000
1.10 to 1.40 factor rate
4 to 18 months
Fora Financial is our pick for borrowers with bad credit scores because its minimum score is only 570. In addition, this lender boasts a short time in business requirement of just six months and has a funding cap that extends to $1,500,000.
Still, this company advertises a factor rate rather than an interest rate, which is a good sign you’re likely to pay more in interest charges, and it only offers short-term business loans. So, you’ll likely have to prepare to pay back the loan quickly.
Read our full Fora Financial review.
In order to qualify, you’ll need to meet the Fora Financial’s criteria of:
Up to $500,000
Starting at 1.11 factor rate
4 to 18 months
Startup business loans can also be harder to find, but QuickBridge fits the bill relatively well. Its time in business requirement is just six months and its minimum credit score and annual revenue requirements are lower than you’ll likely find for a traditional bank loan.
On the other hand, its origination fee can get steep, maxing out at 5.00% of the loan amount. It also advertises a factor rate rather than an interest rate, meaning that you’ll likely have to pay more in interest charges.
Read our full QuickBridge review.
In order to qualify, you’ll need to meet the QuickBridge’s criteria of:
Up to $500,000
8.49%
Up to 144 months
For businesses who qualify, BHG Financial has a lot of perks. Its starting interest rate is very affordable, with available loan terms extending to 144 months. Plus, there’s no personal collateral needed to secure the loan, which means you won’t be on the hook to provide payments if your business defaults.
That said, these loans are likely going to be best suited for established businesses. At $1 million, BHG’s annual revenue requirement is quite high and it requires your company to have been in business at least 2 years.
In order to qualify, you’ll need to meet the BHG Financial’s criteria of:
$25,000 to $500,000
15.22%
6 to 84 months
If your business needs to explore debt consolidation loan options, consider Funding Circle. This lender pairs every applicant with a dedicated account manager, who can answer your questions about the funding process. In addition, it offers loan terms of up to 84 months, allowing you the opportunity to pay off your loan over time, and the starting interest rate is fairly low.
However, some of its other requirements may be harder to meet. Its time in business requirement is as long as a traditional bank loan and, at 660, the minimum credit score requirement is also on the higher end. Plus, Funding Circle doesn’t disclose its annual revenue requirement, which can make it hard to tell if you qualify.
Read our full Funding Circle review.
In order to qualify, you’ll need to meet the Funding Circle’s criteria of:
$1,000,000,000
Not disclosed
Not disclosed
If you prefer to work with a traditional bank loan, look no further than PNC Bank. For larger-than-normal loan amounts, PNC offers commercial banking products. Amounts for its business credit product extend to $1,000,000,000 and are available to businesses with annual revenues over $5 million.
However, if your business doesn’t quite make that much annually, try PNC’s secured loans for small businesses, which start at $100,000+ and have loan terms extending to seven years. This lender allows you to use business assets to secure the loan, meaning that you won’t be personally responsible for payment if your business defaults.
Like some other banks, PNC is not very transparent about its eligibility requirements, maximum loan amount or available interest rates, which can make it difficult to determine if your business will be a good fit. Of the requirements it does disclose, its two-year time in business requirement is longer than you’ll find with a lot of online lenders.
Read our full PNC Bank review.
In order to qualify, you’ll need to meet the PNC Bank’s criteria of:
As the name suggests, large business loans are loans that provide a larger-than-normal amount of funding. Typically, large business loan lenders can provide up to $500,000 or more in financing.
These loans are available from a wide variety of sources, including government programs, banks and online lenders.
| Pros | Cons |
|---|---|
| Offer access to the funding you need for large expenditures Typically come with predictable monthly repayment schedules Repaying responsibly can help build business credit | Large loan amounts come with larger monthly payments May require collateral or a personal guarantee May be more difficult to qualify for than smaller loan amounts |
