| Loan amounts | Up to $5,000,000 |
| Interest rate | 11.5% to 15% variable, 13.5% to 16.5% fixed (Rate depends on the loan amount and term length) |
| Term length (months) | 120 months |
| Min. credit score | 680 (Recommended) |
| Min. time in business | 2 to 3 years (Recommended) |
| Min. annual revenue | $100,000 (Recommended) |
Collateral may be required
Requires a personal guarantee
Slow approval process
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.
| Loan amounts | Up to $5,500,000 |
| Starting interest rate | Usually totaling 3.00% of the amount financed |
| Term length (months) | Up to 300 months |
| Min. credit score | 680 (Recommended) |
| Min. time in business | 2 to 3 years (Recommended) |
| Min. annual revenue | $100,000 (Recommended) |
Down payment required (10%)
More use restrictions than other SBA loans
Funds used must facilitate job creation
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.
| Loan amounts | $5,000 to $1,500,000 |
| Starting interest rate | 1.10 to 1.40 factor rate |
| Term length (months) | 4 to 18 months |
| Min. credit score | 570 |
| Min. time in business | 6 months |
| Min. annual revenue | $180,000 |
Uses factor rate rather than interest rate
Charges an origination fee
Only offers short-term loans
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.
| Loan amounts | Up to $500,000 |
| Starting interest rate | Starting at 1.11 factor rate |
| Term length (months) | 4 to 18 months |
| Min. credit score | 600 |
| Min. time in business | 6 months |
| Min. annual revenue | $250,000 |
Charges an origination fee
Lower maximum loan amount
Advertises a factor rate instead of an interest rate
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.
| Loan amounts | Up to $500,000 |
| Starting interest rate | 8.49% |
| Term length (months) | Up to 144 months |
| Min. credit score | 660 |
| Min. time in business | 2 years |
| Min. annual revenue | $1 million |
High annual revenue requirement
Longer time in business requirement
Higher minimum credit score
For businesses who qualify, BHG Money 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.
| Loan amounts | $25,000 to $500,000 |
| Starting interest rate | 15.22% |
| Term length (months) | 6 to 84 months |
| Min. credit score | 660 |
| Min. time in business | 2 years |
| Min. annual revenue | Not disclosed |
Doesn’t disclose annual revenue requirements
Long time in business requirement
Higher minimum credit score requirement
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.
| Loan amounts | $1,000,000,000 |
| Starting interest rate | Not disclosed |
| Term length (months) | Not disclosed |
| Min. credit score | Not disclosed |
| Min. time in business | Generally 2 years for traditional loans |
| Min. annual revenue | $5 million+ |
Not transparent about many of its eligibility requirements
Long time in business requirement
Doesn’t disclose interest rate range
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.
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.
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.
Learn about how you can get a working capital loan.
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.
| 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 |
