8 Large Business Loans: Best Options for $500,000+
8 Large Business Loans: Best Options for $500,000+
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SBA 7(a) loan
Best for established businesses that can’t qualify for bank financing
Max loan amount
$5,000,000
Min. credit score
650
Est. APR
10.50-14.00%
Pros
- Large borrowing maximums.
- Interest rates are capped.
- Long repayment terms available.
Cons
- Collateral is typically required.
- Longer processing times than online lenders.
SBA 7(a) loan
Best for established businesses that can’t qualify for bank financing
Max loan amount
$5,000,000
Min. credit score
650
Est. APR
10.50-14.00%
Pros
- Large borrowing maximums.
- Interest rates are capped.
- Long repayment terms available.
Cons
- Collateral is typically required.
- Longer processing times than online lenders.
Max loan amount
$1,500,000
Min. credit score
570
Pros
- Cash can be available quickly.
- Get a discount for prepaying.
- No collateral required.
- Low minimum credit score requirement.
Cons
- Charges a factor rate that makes it more difficult to compare costs with other lenders.
- Can’t build business credit.
- Longest loan term is 18 months.
- Charges an origination fee.
Fora Financial - Online term loan
Best for flexible requirements
Max loan amount
$1,500,000
Min. credit score
570
Pros
- Cash can be available quickly.
- Get a discount for prepaying.
- No collateral required.
- Low minimum credit score requirement.
Cons
- Charges a factor rate that makes it more difficult to compare costs with other lenders.
- Can’t build business credit.
- Longest loan term is 18 months.
- Charges an origination fee.
Max loan amount
$10,000,000
Min. credit score
620
Est. APR
5.99-18.00%
Pros
- Funding available within 48 hours.
- Competitive rates and repayment terms.
- Flexible payment options available, including deferment options for certain industries.
- No down payment required.
- Can be used to build business credit.
Cons
- Must have good credit to qualify for no prepayment penalties.
- Charges an origination fee.
JR Capital - Equipment financing
Best for equipment financing
Max loan amount
$10,000,000
Min. credit score
620
Est. APR
5.99-18.00%
Pros
- Funding available within 48 hours.
- Competitive rates and repayment terms.
- Flexible payment options available, including deferment options for certain industries.
- No down payment required.
- Can be used to build business credit.
Cons
- Must have good credit to qualify for no prepayment penalties.
- Charges an origination fee.
Fundomate- Business funding
Best for fast financing
Max loan amount
$500,000
Min. credit score
600
Est. APR
18.00-75.00%
Pros
- Cash can be available in as little as 24 hours.
- Can get a discount for prepaying your loan.
Cons
- Rates can be high compared with traditional banks.
- May have to pay an origination fee.
Fundomate- Business funding
Best for fast financing
Max loan amount
$500,000
Min. credit score
600
Est. APR
18.00-75.00%
Pros
- Cash can be available in as little as 24 hours.
- Can get a discount for prepaying your loan.
Cons
- Rates can be high compared with traditional banks.
- May have to pay an origination fee.
Max loan amount
$500,000
Min. credit score
660
Est. APR
15.22-45.00%
Pros
- Cash can be available within two business days.
- Competitive rates among online lenders.
- Terms up to seven years.
- iBusiness Funding also offers SBA loans up to $5 million.
Cons
- Charges an origination fee.
- Must be in business for a minimum of 24 months.
- Minimum credit score is higher than some other lenders.
iBusiness Funding - Online term loan
Best for long-term financing
Max loan amount
$500,000
Min. credit score
660
Est. APR
15.22-45.00%
Pros
- Cash can be available within two business days.
- Competitive rates among online lenders.
- Terms up to seven years.
- iBusiness Funding also offers SBA loans up to $5 million.
Cons
- Charges an origination fee.
- Must be in business for a minimum of 24 months.
- Minimum credit score is higher than some other lenders.
Max loan amount
$500,000
Min. credit score
600
Pros
- Funding in as little as 24 hours.
- Prepayment discounts available.
- Offers loans to startups and borrowers with bad credit.
- No collateral or down payment required.
Cons
- Charges a factor rate that makes it more difficult to compare costs with other lenders.
- Short-term loans require daily or weekly repayment.
- Requires higher annual revenue than other online lenders.
- Misleading website marketing: National Funding offers only short-term loans and equipment financing/leasing.
- Charges an origination fee.
National Funding - Online term loan
Best for startups
Max loan amount
$500,000
Min. credit score
600
Pros
- Funding in as little as 24 hours.
- Prepayment discounts available.
- Offers loans to startups and borrowers with bad credit.
- No collateral or down payment required.
Cons
- Charges a factor rate that makes it more difficult to compare costs with other lenders.
- Short-term loans require daily or weekly repayment.
- Requires higher annual revenue than other online lenders.
- Misleading website marketing: National Funding offers only short-term loans and equipment financing/leasing.
- Charges an origination fee.
SBA CDC/504 loan
Best for commercial real estate loans
Max loan amount
$5,000,000
Min. credit score
680
Est. APR
5.00-7.00%
Pros
- Low down payment required.
- Repayment terms of up to 25 years.
- Competitive interest rates.
Cons
- Must meet job creation or public policy goals to qualify.
- Longer processing times than online lenders.
SBA CDC/504 loan
Best for commercial real estate loans
Max loan amount
$5,000,000
Min. credit score
680
Est. APR
5.00-7.00%
Pros
- Low down payment required.
- Repayment terms of up to 25 years.
- Competitive interest rates.
Cons
- Must meet job creation or public policy goals to qualify.
- Longer processing times than online lenders.
Chase - Business line of credit
Best for covering cash flow needs
Max loan amount
$500,000
Min. credit score
700
Pros
- Bank credit line with competitive interest rates.
- Large maximum line limit of $500,000.
- Can apply online for up to $250,000.
Cons
- Must have a Chase Business Banking account to apply online.
- Not available in Alaska and Hawaii.
- Annual fee may apply.
- Limited information on terms and fees available online.
Chase - Business line of credit
Best for covering cash flow needs
Max loan amount
$500,000
Min. credit score
700
Pros
- Bank credit line with competitive interest rates.
- Large maximum line limit of $500,000.
- Can apply online for up to $250,000.
Cons
- Must have a Chase Business Banking account to apply online.
- Not available in Alaska and Hawaii.
- Annual fee may apply.
- Limited information on terms and fees available online.
A closer look at the best business loans over $500,000
SBA 7(a)
Best for established businesses that can’t qualify for bank financing
When should you get a large SBA 7(a) loan?
If you can qualify for — and wait for — an SBA loan, the competitive interest rates and favorable terms are worth it, especially since you are borrowing in large amounts. However, because interest rates and terms for loans from traditional banks tend to be better, SBA loans are generally a next-best option. SBA loans can take longer to qualify for than many other business loans, so you’ll want to make sure your funding timeline works with whatever project you are financing.
Is collateral required?
For 7(a) loans over $500,000, the SBA requires lenders to secure the full loan amount using the assets that are being purchased or improved with the 7(a) loan, plus other business assets if necessary. The SBA also requires a personal guarantee from anyone who owns more than 20% of the business.
Fora Financial
Best for flexible requirements
When should you get a large business loan from Fora Financial?
Fora Financial may approve you for financing with a credit score as low as 570. You may also be able to get approved in as little as four hours, with funding as quickly as 72 hours later. It lends up to $1.5 million with no restrictions on the use of the funds.
Fora allows you to borrow more once you’ve paid off 60% of your loan, almost like a line of credit. That may help you finance a large project in waves if you can’t qualify for the full amount all at once. Fora also offers prepayment discounts, which is even more incentive for you to pay down the loan as fast as possible.
Is collateral required?
No.
JR Capital Equipment Financing
Best for equipment financing
When should you get a large business loan from JR Capital?
If you need a loan to purchase large, high-value equipment, you should look for equipment lenders or lenders who have experience with financing equipment. JR Capital can finance up to $10 million in equipment, and you don’t need to have stellar credit.
Is collateral required?
JR Capital uses the equipment being financed as collateral for the loan. Additional collateral is not required.
Fundomate
Best for fast financing
When should you get a large business loan from Fundomate?
If you need fast financing to seize a business opportunity or cover an unexpected expense, Fundomate may let you borrow up to $500,000 in as fast as one to three business days with minimal paperwork required. Fundomate also garners lots of positive feedback from customers who reviewed it on Trustpilot.
Is collateral required?
No.
iBusiness Funding
Best for long-term financing
When should you get a large business loan from iBusiness Funding?
iBusiness Funding, which acquired Funding Circle in 2024, can help you access loans with terms up to seven years much faster than a bank or other SBA lender. A seven-year term is long compared with many other online lenders, and longer terms can help lower monthly payments to make your purchase more affordable.
Is collateral required?
No.
National Funding
Best for startups
When should you get a large business loan from National Funding?
If you can’t qualify for traditional funding because your business has been in operation for less than a year, but you have strong revenue, National Funding is worth considering. This lender will work with businesses that have been operating for only six months. You don’t need to have stellar credit, but you’ll want to make sure your cash flow can support daily or weekly payments.
Is collateral required?
No.
SBA 504 loan
Best for commercial real estate loans
When should you get a large SBA 504 loan?
Because it’s explicitly stated in the qualification requirements, you should look at SBA 504 loans when you are purchasing large fixed assets like existing buildings or land, or large equipment. You can also use 504 loans for new construction or to refinance business debt.
Is collateral required?
The SBA requires that the property or equipment being acquired with a 504 loan is used as collateral. Lenders may ask for additional collateral according to their own practices.
Chase Business Line of Credit
Best for covering cash flow needs
When should you get a large business line of credit from Chase?
In general, a business line of credit is good to cover gaps in cash flow that occur on a regular basis because the revolving line allows you to borrow and pay as many times as you need to, up to a certain limit. You should get a Chase Business Line of Credit specifically if you have good personal credit and have been in business for a couple of years.
Is collateral required?
Yes.
What is a large business loan?
A large business loan typically offers $500,000 or more in funding. These loans are available from traditional and online lenders, and are usually used to finance large investments in your business, such as a new commercial property or tools and systems needed to fuel business growth. These types of loans tend to have long repayment terms and competitive interest rates, but can be harder to qualify for than smaller sized loans.
Types of large business loans
Many different types of business loans can provide large amounts of capital. Here are some of the most common options:
SBA loans
SBA loans are partially guaranteed by the U.S. Small Business Administration and issued by participating lenders, like banks and credit unions.
The most popular type of SBA loan, the 7(a) loan, offers funding amounts up to $5 million. SBA 7(a) loans can be used for a variety of purposes, including purchasing equipment, acquiring or improving real estate, buying a business and debt refinancing.
SBA 504 loans, on the other hand, must be used for large fixed asset purchases or improvements. These loans typically have maximum funding amounts of $5 million — although specific projects and small manufacturers may qualify for up to $5.5 million.
SBA loans offer long repayment terms and competitive interest rates, but you’ll need multiple years in business, good credit and strong finances to qualify. In many cases, you’ll also need to secure a loan with physical collateral.
Business term loans
With a business term loan, you borrow a lump sum of money from a lender and repay it over a specific period, with interest. Business term loans are available from banks and online lenders. Some types of business term loans are more likely to offer large loan amounts, such as:
Commercial real estate loans provide capital specifically for the purchase or renovation of commercial properties, such as offices, storefronts and warehouses. The amount of funding you’re eligible to receive is based on the loan-to-value ratio (LTV). LTV is calculated by dividing the loan amount by the value of the commercial property you own or are looking to purchase.
Similar to commercial real estate loans, equipment loans are used to purchase machinery or equipment for your business. Equipment financing may be available in amounts up to 100% of the value of the equipment you’re looking to purchase. The amount you receive, however, will vary based on your lender and qualifications.
A secured business loan is backed by physical collateral, such as equipment or real estate. The collateral you provide helps reduce the lender’s risk of loaning you money, which enables you to qualify for larger loan amounts and more competitive repayment terms.
Invoice factoring
Invoice factoring, also referred to as accounts receivable factoring, allows you to sell your unpaid invoices to a factoring company at a discount in exchange for an advance of capital.
The factoring company typically advances a percentage of the invoice amount, potentially up to 90%. Then, the company assumes responsibility for collecting repayment on your invoices. Once the factoring company receives payment from your customers, it sends you the difference, minus the agreed-upon fees.
Because invoices serve as collateral for this type of financing, it can be easier to qualify for compared with other business loan options. Invoice factoring is a good option for business-to-business companies that have capital tied up in unpaid invoices.
Business lines of credit
A business line of credit provides access to flexible funding. You draw money from a set amount of funds and only pay interest on the money you borrow. After you’ve repaid these funds, you can continue to draw on the credit line.
Because business lines of credit are generally used for working capital and short-term expenses, maximum funding amounts are usually lower than what you might get from a business term loan. Some lenders, however, typically banks, offer lines of credit in amounts of $500,000 or more.
Certain lenders may also offer SBA lines of credit, which are available in amounts up to $5 million. Often, these products are designed for established companies with greater financing needs.
Pros and cons of large business loans
Pros
Provides funding for large business investments.
Typically have long repayment terms with monthly payment schedules.
May offer competitive interest rates.
Can be used to build business credit.
Cons
Can be harder to qualify for than smaller loans.
May need to be secured with physical collateral.
Monthly payments will be larger and you’ll likely pay more in interest over the lifecycle of the loan.
Large loans from banks and SBA lenders can be slow to fund, with lengthy application processes.
How to qualify for a large business loan
To qualify for a large business loan, you’ll often need:
- Good credit. A credit score of 690 or higher will help you access the most competitive options.
- Strong finances. It’s helpful to have annual revenue of $100,000 or more. Although not always required, lenders like to see profitability.
- Multiple years in business. Many large business loans require you to have at least two years in operation.
- Sufficient collateral. You may need to secure your loan with physical collateral, such as inventory, equipment or real estate.
Asset-based loan options — like invoice factoring or equipment financing — however, may have more flexible eligibility criteria. Because these products are inherently backed by collateral, they reduce the risk for the lender, and as a result, some lenders focus less heavily on traditional business loan requirements.
How to get a large business loan
Here are steps you can follow to get a large business loan.
1. Understand your financing needs
Determine exactly how much capital you need and why you need it. You'll also want to calculate how much debt you can afford. If you’re looking for a large amount of funding, you’ll likely have larger monthly payments. You want to make sure you have the necessary cash flow to manage payments before continuing your financing search.
2. Evaluate your qualifications
Lenders will typically use your personal credit score, annual revenue and time in business to underwrite your loan application. They may also consider how much collateral you can offer. You’ll usually need to meet strict criteria to qualify for a large business loan.
Although there are some large business loan options for startups and borrowers with bad credit, these may have higher interest rates and shorter terms, making them more difficult to repay.
By evaluating your business’s qualifications ahead of time, you’ll have a good sense of where you stand with different lenders, as well as ensure that getting a large business loan is the right decision for
3. Research and compare lenders
You’ll want to research and compare several different small-business lenders to find the best option for your needs. You should consider factors such as available loan types, maximum funding amount, interest rates, fees and repayment terms.
You’ll also want to think about the lender’s application process, speed, customer service and reputation.
🤓 Nerdy Tip
If you’re a mid-sized business with large financing needs, you might look for lenders that offer a commercial lending division. Commercial loans are often designed for larger, high-revenue businesses. Through PNC Bank’s commercial division, for example, established businesses can access loans from $10 million to $1 billion.4. Complete and submit your application
The business loan application you need to complete will vary based on the lender and loan type. Because you’re asking for a large amount of funding, it’s likely that the lender will require more documentation in comparison with other business loans.
You may need to provide:
- Basic information about you and your business.
- Personal and business bank statements.
- Personal and business tax returns.
- Business financial statements.
- Information about your collateral.
- Existing business debt schedule, if applicable.
When applying for real estate financing, you’ll need to provide a valuation of the property you’re looking to purchase or upgrade. Similarly, equipment loans will likely require an equipment quote.
5. Review the loan agreement and get funds
It may take anywhere from a few days to several months to receive approval for a loan application. Banks and SBA lenders will have a slower underwriting and funding process compared with online lenders.
Once you receive approval, your lender will provide you with a business loan agreement to review and sign. You should read the document carefully and make sure you understand the terms and conditions, as well as the repayment process.
If you have questions or concerns, you’ll want to contact your lender for clarification before signing. After you’ve signed the agreement, your lender will transfer your funds.
» MORE: How to get a business loan
Alternatives to large business loans
- Crowdfunding: Crowdfunding is a type of business financing that allows you to access capital without taking on debt. Crowdfunding takes place through online platforms on which you can pitch your business to potential backers, who give you cash in exchange for rewards or even ownership in your company.
- Angel investors: Angel investors are wealthy individuals who choose to invest in businesses in exchange for ownership stakes. A form of equity financing, angel investing can help you fund your business while avoiding taking on debt. You should be aware of how much you’re willing to dilute your business ownership though.
Frequently asked questions
SBA 7(a) and 504 loans offer some of the largest loan amounts, typically up to $5 million. Banks may also issue large business loans up to $1 million, but these offerings vary based on the bank and type of loan product, among other factors.
Loans of more than $5 million may be available from commercial lenders who cater toward mid-sized and high-revenue businesses.
It can be hard to get a large business loan if you don’t have good credit, strong finances and multiple years in business. You may also need to provide collateral. Although eligibility criteria vary by lender and loan type, many lenders ask you to meet stricter requirements to access larger loan amounts.
It’s unlikely that you’ll be able to get a large business loan without existing revenue. Large business loans typically have strict eligibility criteria, including monthly or annual revenue requirements. If you’re a new business that isn’t earning money yet, you’ll likely need to consider alternative options.
Learn more about how to get a business loan with no money.
Last updated on January 2, 2025
Methodology
NerdWallet’s review process evaluates and rates small-business loan products from traditional banks and online lenders. We collect over 30 data points on each lender using company websites and public documents. We may also go through a lender’s initial application flow and reach out to company representatives. NerdWallet writers and editors conduct a full fact check and update annually, but also make updates throughout the year as necessary.
Our star ratings award points to lenders that offer small-business friendly features, including:
- Transparency of rates and terms.
- Flexible payment options.
- Fast funding times.
- Accessible customer service.
- Reporting of payments to business credit bureaus.
- Responsible lending practices.
We weigh these factors based on our assessment of which are the most important to small-business owners and how meaningfully they impact borrowers’ experiences.
NerdWallet does not receive compensation for our star ratings. Read more about our ratings methodology for small-business loans and our editorial guidelines.
Wondering if you qualify?
It’s possible to get a business loan even if you have bad credit. Bad-credit business loans are available from alternative sources, like online or nonprofit lenders.
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