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$10 million business loans
Buy real estate, another business or expand your enterprise.
A $10 million loan is out of the typical range for business financing. To borrow such a high amount from a traditional lender, you need to have strong personal credit and high-enough revenue to afford five-digit monthly repayments. But there are also alternatives with less-strict requirements for businesses that rely on contracts or sales — though these can be expensive.
What's in this guide?
Compare $10 million business loans
Updated December 6th, 2019
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Where can I get a $10 million business loan?
Your best bet to get a $10 million business loan is with a large bank or lender that specializes in high-dollar financing for businesses. You also might be able to qualify for $10 million through the Small Business Administration (SBA) 504 program.
If you have trouble qualifying for traditional funding, you might also want to look into alternative options. While these tend to be more expensive, they usually have less-stringent eligibility requirements. Businesses that rely on invoices from other companies or government contracts may find a factoring company useful. And retailers might be able to qualify for funding from a merchant cash advance company.
Ask an expert: What types of lenders should I turn to?
Thomas Ulbrich
Executive Director of the University of Buffalo School of Management’s Center for Entrepreneurial Leadership
Small businesses may want to look to a bank that has a relationship with the SBA in an effort to enable the bank to de-risk part of their loan by using the SBA programs.
Sometimes local community banks may be a good source for loans if your business has a long history in the community and with the bank.
Another growing source of loans like this can be credit unions as they tend to be smaller and are often making these decisions at the local level.
How can I qualify for a $10 million business loan?
Eligibility requirements vary by lender and the type of financing you’re interested in. If you’re interested in a $10 million business loan from a traditional bank, might need to meet the following criteria:
- Strong personal credit
- Established business with years of experience
- Strong business financials to afford repayments
- Collateral to back the loan
- Established relationship with the bank
How much will a $10 million business loan cost?
It depends on your business and the type of financing you go with. However, loans of this size typically come with relatively low rates and long terms — think APRs between 6% and 10% and terms ranging from 10 to 25 years.
A $1o million business loan with a 25-year term at a 6% interest rate comes with repayments of $64,430.14 a month.
Let’s take a look at an example …
Daryl runs a popular online store for high-end leather bags. He wants to expand his inventory even further, which means a $10-million investment.
He previously had trouble getting funding from banks in the past, so he decides to go with an alternative lender. After comparing his options, he chooses to work with Clearbanc.
He qualifies for a merchant cash advance that comes with a flat fee of 7%, which he pays off with a percentage of his business’s daily sales.
- Loan amount: $10 million
- Loan fee: $700,000
- Percentage of daily sales: 15%
Since Clearbanc doesn’t require businesses to pay off their advance by a certain date, Daryl doesn’t have to worry about seasonal sales affecting his repayment schedule.
5 types of $10 million business loans
You have several types of financing to choose from when looking to borrow $10 million — though not all are right for every business.
Business term loan
A business term loan comes in one lump sum, which you repay over a period of 10 to 25 years — plus interest and fees. Term loans of this size might be available through large banks or online lenders that specialize in high-dollar financing.
You generally need to have near-perfect credit and high monthly revenue to qualify for a $10 million term loan. It also helps to have a good relationship with the lender you’re applying with. And collateral is usually required for a loan of this size.
Consider using a term loan if …
- You need to fund a one-time expense
- You and your business partners have excellent personal credit
- You have a good relationship with your lender
Consider other options if …
- It’s hard to predict your business’s costs.
- You have weak or poor credit.
- Your business lacks sufficient collateral.
Business line of credit
A line of credit makes sense when you have an ongoing project you need to fund, like construction or expansion. Rather than borrowing $10 million all at once, you get access to a credit limit up to $10 million, which you can draw from as needed.
The same types of lenders that offer term loans also usually offer lines of credit of this amount. Similar eligibility requirements also apply.
Consider using a line of credit if …
- You have costs that are unpredictable.
- You and your business partners have strong personal credit.
- You have enough collateral to back a $10-million credit line.
Consider other options if…
- You don’t have enough collateral.
- You only need funds for a one-time project.
- You or another business partner have poor credit.
SBA 504 loan
The SBA’s loan programs make it easier for small businesses to qualify for financing by guaranteeing part of the loan. While most programs dare capped at $5 million, you might be able to find an SBA 504 loan of up to $10 million, depending on the lender you work with.
The 504 program is meant to buy property, equipment or real estate. Generally, you need to put up a 10% to 20% down payment and meet the SBA’s requirements to qualify for this loan. SBA loans involve a lot of paperwork and take a longer-than-average time to fund.
Consider using an SBA 504 loan if …
- You need funds to buy property, real estate or equipment.
- You can foot at least 10% of the project.
- You have the time to invest in an SBA loan application.
Consider other options if …
- You need funding relatively fast.
- You don’t want to buy property, real estate or equipment.
- You can’t make a 10% down payment.
Merchant cash advance
Retailers can get an advance on their future sales through this high-cost alternative to traditional business loans. Generally, merchant cash advances have less stringent eligibility requirements and a much faster turnaround — think a few days, rather than weeks.
Instead of interest, these come with a flat fee that you repay with a percentage of your company’s sales. However, these can be significantly more expensive than traditional financing.
Consider using a merchant cash advance if …
- You own a retail business.
- You’ve struggled to get financing elsewhere.
- You ‘re short on time to spend with a lengthy application.
Consider other options if …
- You’re not in the retail industry.
- You can qualify for a term loan or SBA loan.
- You have the time to spend on a more detailed application.
Invoice factoring
Similar to a merchant cash advance, this option offers an advance on your business’s unpaid invoices from other companies or government agencies. It involves selling your unpaid invoices at a discount to a third party. You receive around 80% to 95% of the unpaid amount up front and the remaining amount after your clients have paid.
Invoice factoring is typically fast, and you can qualify without revenue or excellent credit. However, it’s also expensive compared to other options.
Consider invoice factoring if …
- Your business has at least $10.5 million in unpaid invoices.
- You need money quickly.
- You’ve struggled to qualify for other types of financing.
Consider other options if …
- Your business has less than $10.5 million in unpaid invoices.
- You have time to spend on lengthier applications.
- Your business can qualify for a term loan or line of credit.
Bottom line
Your choices are limited when you need to borrow $10 million for your business — most popular online lenders are off the table, as are many small banks. But there are still options for businesses with strong financials and those that need financing to get back on their feet. You can learn more about your options by checking out our guide to business loans.
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