Best large business loans

Large business loans can be used to cover major business expenses, but in many cases, they may come with stricter qualifying criteria or higher interest rates

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By Tara Mastroeni | Edited by Dawn Daniels | September 19, 2024

SBA 7(a) loan: Best large government-backed loan

Up to $5,000,000

11.00% to 14.50%  14.50% for loans $50,000 or less
14.00% for loans $50,001 to $250,000
12.50% for loans $250,001 to $350,000
11.00% for loans above $350,000
Some lenders may charge lower rates. Based on the current prime rate of 8.00% + a rate maximum set by the SBA.

13.00% to 16.00%  16.00% for loans $25,000 or less
15.00% for loans $25,001 to $50,000
14.00% for loans $50,001 to $250,000
13.00% for loans above $250,000
Some lenders may charge lower rates. Based on the current prime rate of 8.00% + a rate maximum set by the SBA.

120 months

Pros
  • Businesses that may not qualify for a traditional loan may be eligible
  • Provides capped interest rates
  • Small Business Development Centers (SBDCs) available to provide business assistance
Cons
  • Collateral may be required
  • Requires a personal guarantee
  • Slow approval process

Why we picked it

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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.

How to qualify

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In order to qualify, you’ll need to meet the SBA’s criteria of:

  • Min. credit score: 680 (Recommended)
  • Min. time in business: 2 to 3 years (Recommended)
  • Min. annual revenue: $100,000 (Recommended)

SBA 504/CDC loan: Best large business loan for commercial real estate

Up to $5,500,000

Usually totaling 3.00% of the amount financed

Up to 300 months

Pros
  • Fixed interest rates
  • Longer loan terms available
  • Higher funding cap
Cons
  • Down payment required (10%)
  • More use restrictions than other SBA loans
  • Funds used must facilitate job creation

Why we picked it

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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.

How to qualify

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In order to qualify, you’ll need to meet the SBA’s criteria of:

  • Min. credit score: 680 (Recommended)
  • Min. time in business: 2 to 3 years (Recommended)
  • Min. annual revenue: $100,000 (Recommended)

Fora Financial: Best large business loan for bad credit borrowers

$5,000 to $1,500,000

1.15 to 1.40 factor rate

4 to 18 months

Pros
  • Low minimum credit score requirement
  • Short time in business requirement
  • Wide range of loan amounts available
Cons
  • Uses factor rate rather than interest rate
  • Charges an origination fee
  • Only offers short-term loans

Why we picked it

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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.

How to qualify

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In order to qualify, you’ll need to meet the Fora Financial’s criteria of:

  • Min. credit score: 570
  • Min. time in business: 6 months
  • Min. annual revenue: $180,000

QuickBridge: Best large business loans for startups

Up to $500,000

Starting at 1.11 factor rate

3 to 18 months

Pros
  • Short time in business requirement
  • Lower minimum credit score requirement
  • Lower annual revenue requirement
Cons
  • Charges an origination fee
  • Lower maximum loan amount
  • Advertises a factor rate instead of an interest rate

Why we picked it

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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.

How to qualify

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In order to qualify, you’ll need to meet the QuickBridge’s criteria of:

  • Min. credit score: 580
  • Min. time in business: 6 months
  • Min. annual revenue: $250,000

BHG Financial: Best large, long-term business loans

Up to $500,000

8.49%

Up to 144 months

Pros
  • Affordable starting interest rates
  • Wide range of loan terms available
  • No personal collateral required
Cons
  • High annual revenue requirement
  • Longer time in business requirement
  • Higher minimum credit score

Why we picked it

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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.

How to qualify

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In order to qualify, you’ll need to meet the BHG Financial’s criteria of:

  • Min. credit score: 750
  • Min. time in business: 2 years
  • Min. annual revenue: $1 million

Funding Circle: Best large business loans for debt consolidation

$25,000 to $500,000

7.49%

6 to 84 months

Pros
  • Relatively affordable starting interest rate
  • Wide range of loan terms available
  • Provides dedicated account manager
Cons
  • Doesn’t disclose annual revenue requirements
  • Long time in business requirement
  • Higher minimum credit score requirement

Why we picked it

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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.

How to qualify

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In order to qualify, you’ll need to meet the Funding Circle’s criteria of:

  • Min. credit score: 660
  • Min. time in business: 2 years
  • Min. annual revenue: Not disclosed

PNC Bank: Best large traditional bank loan

$1,000,000,000

Not disclosed

Not disclosed

Pros
  • Doesn’t impose a funding cap
  • Wide range of loan terms available
  • Uses business assets to secure the loan
Cons
  • Not transparent about many of its eligibility requirements
  • Long time in business requirement
  • Doesn’t disclose interest rate range

Why we picked it

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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.

How to qualify

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In order to qualify, you’ll need to meet the PNC Bank’s criteria of:

  • Min. credit score: Not disclosed
  • Min. time in business: Generally 2 years for traditional loans
  • Min. annual revenue: $5 million+

Types of large business loans

SBA loans

SBA loans are backed by the U.S. Small Business Administration and issued by participating lenders. That guarantee makes these loans less risky for the lenders, who in turn are able to offer more lenient qualifying standards and larger loan amounts to borrowers. It’s why applying for an SBA loan could be a smart option if you don’t think you’ll qualify for a traditional bank loan.

SBA loans come with long repayment terms and capped interest rates, but you’ll likely need to secure the loan with collateral or a personal guarantee.

If you want to finance fixed assets, like real estate or equipment, the SBA 504/CDC loan is likely your best bet. However, if you need more-flexible financing, such as working capital costs or debt consolidation, try the SBA 7(a) loan instead.

Business term loans

Business term loans are installment loans, which means the principal and interest owed on the loan 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 largely 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

To apply for a loan:

1. Determine how much you need to borrow: Before you apply for a loan, ask yourself why you need the funds and what you intend to use them for. Taking out a large business loan should not be considered lightly, as you’ll have a large sum of money to repay once the loan goes through. Use a business loan calculator to see what your monthly payment could look like at a variety of loan amounts and consider doing a business cash flow analysis to ensure your business will be able to meet its new debt obligation

2. Evaluate your qualifications: Once you know how much you can afford to borrow, the next step is to see how well you fit common business loan requirements. Lenders will generally consider how long you’ve been in business, as well as your total revenue and your personal and business credit scores. If you have a lower personal credit score, be aware that it is still possible to get a large business loan, you’ll likely just have to be prepared to pay a higher interest rate.

3. Shop around for a lender: It’s always a good idea to compare lenders to help find the best small business loan for you. Start by reading LendingTree reviews or asking fellow business owners in your industry for suggestions.

4. Submit an application: The last step in this process is to submit a loan application. Applications can usually be done online or over the phone. You’ll typically need to provide some identifying information about you and your business, plus submit some supplemental documentation, such as a business plan or business tax returns.

How to compare large business loans

When shopping around for a large business loan, it’s smart to compare the following metrics:

  • 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 that you understand how much you’ll pay in interest charges over the life of the loan.
  • Repayment term: There are both short- and long-term business loans. Typically, short-term business loans offer a shorter repayment window, but they can allow you to save on interest charges overall. Long-term business loans, on the other hand, generally offer smaller monthly payments and a longer repayment schedule, but you’ll pay more in interest over the life of the loan.
  • Funding time: Some business loan lenders have the capacity to offer same-day funding while others may take a few days to complete your request.
  • Added fees: Some lenders also charge added fees, like origination fees or business loan prepayment penalties. These charges can add up, so make sure that you’re aware of the lender’s fee schedule before signing on the dotted line.
  • Lender perks: Occasionally, lenders may offer certain perks, like business coaching or assigning you to a dedicated account representative who can answer your questions. While these factors should not make or break your loan decision, you can weigh them in your comparison process.

Pros and cons of large business loans

ProsCons
 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

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: Loan amounts of at least $500,000 can help your business fund large expenses.
  • Minimum time in business: Lenders offering large business loans may prioritize businesses with longer histories. Here, we have focused on lenders who require time in business of two years or less.
  • Minimum credit score: When lending large amounts, lenders may require higher personal credit scores, but our picks prioritize lenders whose credit score requirement is below 700
  • Rates and terms: We prioritize 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.

Best large business loan summary