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$1 million business loans

Compare lenders and find out your monthly payments for a $1,000,000 business loan before applying.

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By

Anna Serio

Edited by

Holly Jennings

Updated

Fact checked

Good for larger loans

  • Required time in business: 1+ years
  • Required annual revenue: $500k+
  • Min credit score: 500+

Best overall

  • Required time in business: 1+ years
  • Required annual revenue: $100k+
  • Min credit score: 560+

Highly-rated

  • Required time in business: 1+ years
  • Required annual revenue: $50k+
  • Min credit score: 525+

To help you choose the best $1 million business financing for your company, we’ve reviewed over 130 providers — including SBA loans, term loans, lines of credit, merchant cash advances and more.

Narrow down your choices by comparing rates and requirements, selecting Compare on up to four lenders to weigh the benefits side by side. Select Learn more to visit the lender’s site or More info to read our review.

1 - 6 of 6
Updated regularly
Name Product Filter Values Min. Amount Max. Amount APR Requirements
National Business Capital business loans
Finder Rating: 4.3 / 5: ★★★★★
National Business Capital business loans
$100,000
$10,000,000
Starting at 1.5%
1+ Year in Business, $500,000 in Annual Revenue
Get high loan amounts at competitive rates. Plus, advisors are on standby to help you through the process.
Go to site
More Info
Lendio business loans
Finder Rating: 4.8 / 5: ★★★★★
Lendio business loans
$1,000
$5,000,000
Starting at 3%
Operate business in US or Canada for 6 months or more, have a business bank account, 500 personal credit score, at least $8,000 in monthly revenue
Submit one simple application to potentially get offers from a network of over 300 legit business lenders.
Go to site
More Info
Lendzi
Finder Rating: 4.7 / 5: ★★★★★
Lendzi
$5,000
$2,000,000
Starting from 3.9%
525+ credit score, one year in business, at least $50,000 annual revenue
Compare lending options and get funded fast.
Go to site
More Info
BusinessLoans.com
Finder Rating: 4.4 / 5: ★★★★★
BusinessLoans.com
$5,000
$3,000,000
Varies by loan type and lender
Must have been in business between 1 to 2 years, have a minimum revenue of $75,000 to $250,000 and have a minimum credit score of 500 to 650.
Complete a three-minute form to see loans that fit your business’s needs. Compare offers without a hard credit check.
Go to site
More Info
SMB Compass
Finder Rating: 4.4 / 5: ★★★★★
SMB Compass
$25,000
$5,000,000
Starting at 5.99%
2 years in business, $25,000 monthly revenue, business bank account
Enjoy personalized solutions and a consultative approach for businesses with at least $25,000 in monthly revenue.
Go to site
Loanspark
Finder Rating: 4.6 / 5: ★★★★★
Loanspark
$10,000
$20,000,000
Starting at 1%
600+ personal credit score, 1+ years time in business, $500,000 minimum annual revenue, active business checking account required
Prequalify with this lending marketplace using an easy application process. Plus, work with real loan experts to make the best decisions on loan programs for ERC, SBA, e-commerce, cannabis and other loan categories.
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How to get a $1 million business loan

Although each lender has its own process, these steps should help guide your business toward the right loan option:

  1. Compare lenders. Your first step should be to compare business loan lenders. Not every lender offers loans of $1 million, and those that do will have different requirements that could make the difference between approval and rejection.
  2. Prepare financial documents. Lenders want to see your business plan, annual revenue projections, bank statements, tax documents and other information that demonstrates your business’s ability to repay a loan.
  3. Speak with a financial advisor. Loop a financial advisor into your plan for a $1 million business loan to ensure your business can afford it and develop a plan to repay it.
  4. Apply for preapproval. This lets you see your loan’s potential terms before your personal or business credit is officially checked. Not all lenders offer preapproval, but if it’s available, take advantage of it.
  5. Review and sign the loan contract. If approved, review your loan contract with your partners and financial advisor to ensure the terms benefit your business.

Where can I get a $1 million business loan?

Banks, credit unions and online lenders frequently offer loans up to $1 million for established businesses. The Small Business Association (SBA) also backs loans of $1 million, but to apply for funding, you will need to submit an application through an SBA-approved lender.

$1 million SBA loans

Since the federal government guarantees SBA loans, they’re one of the most affordable options for a small business owner looking for a large loan. They’re also one of the most difficult loans to qualify for. Only 100,000 applicants were approved across all SBA programs in 2019, according to data from the SBA.

Here’s how a $1 million loan breaks down for the SBA 7(a) program:

  • Percent guaranteed: 75%
  • Amount guaranteed: $750,000
  • Closing costs: Guaranty fee equal to 3.5% of the amount guaranteed, or $26,250, plus any additional charges by the bank or lender
  • Maximum interest rate: Prime + 2.75%
  • Terms: 5 to 10 years for working capital and equipment; up to 25 years for real estate

How hard is it to get a $1 million business loan?

It depends on you and your business. If you exceed a lender’s minimum requirements, you might not have any trouble. But if your business is less than a year old, not yet profitable or you have poor personal credit, you may be unable to qualify for such a large loan. Having an unpredictable cash flow or low revenue can also get your business rejected.

How do I qualify for a $1 million dollar loan?

Your business needs to prove it can afford a $1 million business loan. While requirements vary by lender, you’ll typically need to meet the following criteria to be considered:

  • Good to excellent credit. Lenders look for high personal and business credit scores. The better your credit scores, the more likely you are to be approved.
  • Two years in business. Lenders are generally wary of giving this amount to businesses that are new to the game, especially if you’re applying with a bank.
  • $10 million in annual revenue. The higher your loan amount, the higher your revenue requirements. It might be possible to secure $1 million in financing with revenue under this amount, but it won’t be easy.
  • Large profit margin. On top of having a strong annual revenue, many lenders want to see that your business is actually making money rather than breaking even.
  • Personal guarantee. Many business loans require the owner or owners to back the amount they’re borrowing with a lien on their personal assets. You and your business partners will likely need to have at least $1 million in equity on your homes, cars and other investments.

How much will it cost to pay back a $1 million business loan?

$1 million business loans tend to come with longer terms — typically between 10 to 25 years — and lower rates. But monthly repayments tend to be high because the principal is so large. On average, online lenders tend to offer higher rates than local banks, so you might want to go with a bank you trust if keeping the cost down is your top priority. Use our calculator to estimate your loan’s monthly cost.

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Bottom line

Well-established enterprises with high annual revenues are most likely to qualify for business loans of $1 million or higher. To find more lenders and learn about your other financing options, check out our business loans guide. To learn more about what rates to expect, read our guide to interest rates on business loans to learn more about what to expect.

Frequently asked questions

Can I find an unsecured business loan for $1 million?
It depends on your business’s revenue, age and profit. In general, lenders require your business to back your loan with an asset, but some lenders offer both secured and unsecured loans for loans of $1 million or larger.

Are startups eligible for $1 million business loans?
Probably not. Even business loans for startups typically stop well under $1 million. Instead, you might want to tap into other resources like crowdfunding, investors or grants.

Can I get a $1 million business loan with bad credit?
It’s possible, though it might not be cheap or easy to find a lender willing to offer that amount. Typically, you need good or excellent credit to qualify for the most competitive rates on large loans.

Can I buy a business with a $1 million loan?
Yes. Many lenders offer financing designed to cover business acquisition costs.

Other business loan amounts:

  1. U.S. Small Business Administration

More guides on Finder

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2 Responses

    Default Gravatar
    SybilFebruary 9, 2019

    what is the lowest interest rate one can get for a one million dollar unsecured loan?

    Reply
      AvatarFinder
      JoshuaFebruary 10, 2019Finder

      Hi Sybil,

      Thanks for getting in touch with finder. I hope all is well with you. :)

      As of now, we currently don’t have this specific information since most lenders would not go far from the average market interest rate. However, generally speaking, online lenders tend to charge a higher interest rate compared to traditional banks. Perhaps, you can also take into consideration SBA loans. They could be the one that offers the lowest interest rate since they are partly backed up by the government. However, getting approved by them is not that easy.

      I would highly recommend that you consider all your options. Check terms and conditions and eligibility requirements. From there, you should be able to find the right loan for you.

      I hope this helps. Should you have further questions, please don’t hesitate to reach us out again.

      Have a wonderful day!

      Cheers,
      Joshua

      Reply
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