Best Large Business Loans
Large business loans can help cover major business expenses, but typically come with stricter qualifying criteria and higher interest rates.
| Lender | Starting rate | Amount | Term | Time in business | |
|---|---|---|---|---|---|
|
13.00% |
$5M – $1.5B |
4 – 18 months | Not specified | |
|
22.45% (suffix) |
$25k – $500k |
6 – 60 months | 24 months |
| Lender |
|
|
|---|---|---|
| Starting rate | 13.00% | 22.45% (suffix) |
| Amount | $5M – $1.5B | $25k – $500k |
| Term | 4 – 18 months | 6 – 60 months |
| Time in business | Not specified | 24 months |
Best large business loan lenders: More details
Best for: Bad credit borrowers – Fora Financial
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- Low minimum credit score requirement
- Short business history requirement
- Quick funding times
- Factor rate makes it hard to compare against competitors
- Charges an origination fee
- Short repayment terms compared to other large business loans
Alternative lender Fora Financial is our top pick for those needing a bad credit business loan because it accepts credit scores as low as . In addition, startups are welcome to apply after only of operation — although the minimum annual revenue requirement is steep. Funds can be used for operational costs, supplies, equipment, emergency bills and more.
Note that Fora Financial uses a factor rate instead of interest or APR, making it hard to estimate the total cost of borrowing. Also, the short repayment terms could be a strain on your budget, especially if you borrow a large amount.
In order to qualify, you’ll need to meet the Fora Financial’s criteria of:
- Minimum credit score:
- Minimum time in business:
- Minimum annual revenue:
Best for: Debt consolidation loans – iBusiness Funding
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- One application for multiple financing options
- Extended repayment terms
- No upfront or prepayment fees
- Collateral, personal guarantee and/or blanket lien may be required
- Not ideal for startups or low credit borrowers
If you’re exploring business debt consolidation options, iBusiness Funding provides up to $500,000 to help streamline your business finances. Every applicant is paired with a dedicated account manager to help guide you through the entire funding process. In addition, terms go up to seven years, with no fees for repaying the debt early.
However, iBusiness’s minimum business history and credit score requirements are on the higher end compared to other alternative lenders. That said, its lenient annual revenue requirement makes it ideal for low-revenue companies.
In order to qualify, you’ll need to meet the iBusiness Funding’s criteria of:
- Minimum credit score: 640
- Minimum time in business: 24 months
- Minimum annual revenue:
What is a large business loan?
As the name suggests, large business loans are a type of business financing that provide a substantial 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.
Types of large business loans
SBA loans
Since SBA loans come with a partial guarantee from the U.S. Small Business Administration (SBA), lenders are able to offer more lenient eligibility criteria and larger loan amounts — all with long repayment terms and capped interest rates. Applying for an SBA loan could be a smart option for those who can’t qualify for a traditional bank loan.
The SBA 504/CDC loan is best for financing expensive fixed assets, like real estate or equipment. However, if you need flexible financing for working capital costs or debt consolidation, the SBA 7(a) loan might be a better fit. The SBA Express loan offers smaller amounts but can help get you the funds you need within 36 hours.
Note that you’ll likely need to secure your SBA loan with collateral or a personal guarantee.
Business term loans
Business term loans are installment loans, which means the principal and interest is repaid over a set period of time. Term loans are typically one of the most common types of small business loans available.
Some term loans are more likely to provide larger loan amounts than others, including:
This is because these loans are secured by physical assets, which can be repossessed if you default on the loan. As a result, they’re often seen as less risky in the eyes of the lender.
How to get a large business loan
Here are the key steps to help you get a large loan for your business.
1. Determine how much you need. Before you apply for a loan, make a list of your most essential business needs and goals. A business loan calculator can help estimate your monthly payments, and doing a business cash flow analysis can ensure your business is able to meet any new debt obligation. If in doubt, borrow less than you need to keep your business credit profile in good standing.
2. Evaluate your qualifications. Although large business loan requirements vary by lender and loan type, you can expect lenders to review the following when considering your application:
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Business history
For large loans, you typically need to be in business for at least six months to qualify. If you’re just starting a business, you may want to explore other options like microloans or crowdfunding for business. -
Personal and business credit scores
It’s possible to get a large business loan with a low personal credit score, but be prepared to pay a higher interest rate. You can check and monitor your credit score for free with LendingTree Spring to see where you stand. -
Annual revenue
Lenders usually want to see a robust income stream for anyone seeking a large business loan, with requirements ranging from around $50,000 to $5 million. -
Available collateral
Large loans typically require collateral — either as real estate or cash assets. If you can’t provide collateral, you can consider an unsecured business loan instead.
3. Shop around for a lender: It’s always a good idea to compare lenders to find the best small business loan for your needs. Start by reading LendingTree reviews or asking fellow business owners in your industry for suggestions. You typically have a 14- to 45-day window to rate shop without further impact to your credit score.
4. Submit an application: Applications can usually be done online or over the phone, although some banks may require an in-person appointment. You’ll typically need to provide identifying information about you and your business, supplemental documentation like a business plan and business tax returns, as well as information about collateral.
How to compare large business loans
Picking the best loan for your business can be challenging. Here are some metrics to consider before signing the dotted line.
Interest rate
Business loan interest rates can be variable or fixed. The lender can also charge a factor rate instead of simple interest. In either case, be sure to crunch the numbers in advance to understand the total cost of borrowing.
Repayment term
You can typically reduce interest charges by going with a short-term business loan. But if you need extra time to repay the debt, a long-term business loan could be the way to go, although you’ll likely pay more interest over the life of the loan.
Funding time
Some alternative lenders have the capacity to offer same-day funding, while others may take a few days to process your request. With traditional bank and SBA loans, you can expect the funding timeline to take anywhere from two weeks to a few months.
Added fees
Watch out for additional fees, like origination fees or business loan prepayment penalties. These charges can add up so make sure to thoroughly review the business loan agreement before moving forward.
Lender perks
Occasionally, lenders may offer certain perks, like business coaching, member rewards or rate discounts. While these benefits may not make or break your loan decision, they can be an added bonus worth considering.
Pros and cons of large business loans
Pros
- Access the funding you need for large expenditures
- Most loans will have predictable monthly repayment schedules
- Repaying responsibly can help build business credit
Cons
- High monthly repayments could strain your business budget
- May require collateral or a personal guarantee
- Eligibility criteria is typically stricter for large loans
Our methodology: How we chose the best large business loans
How we chose the best large business loan
We reviewed more than 20 lenders to determine the overall best seven large business loan loans. To make our list, lenders must meet the following criteria:
- Maximum loan amount: All of the lenders on our list offer at least up to $500,000 to help your business fund large expenses like commercial real estate, equipment, expansions and more.
- Rates and terms: We selected lenders with more competitive fixed rates and fewer fees, as well as more options for repayment terms, loan amounts and APR discounts.
- Repayment experience: When looking at repayment experience, we consider each lender’s reputation and business practices. We also prioritize lenders that report to all major credit bureaus, offer reliable customer service and provide any additional perks to borrowers, like business coaching or membership rewards.
Best large business loan summary
- : Best for SBA 7(a) loan
- : Best for SBA 504/CDC loan
- Fora Financial: Best for bad credit borrowers
- : Best for startups
- : Best for long-term business loans
- iBusiness Funding: Best for debt consolidation loans
- Bank: Best for traditional bank loans