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$10 million business loans
Buy real estate, another business or expand your enterprise.
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 SBA 504 program — but this financing is limited to commercial real estate, not working capital.
Unfortunately, many alternative options won’t be able to fund your business at the $10 million mark. Smaller businesses are also cut out of the picture. If you don’t have the revenue to support such a large loan and a previous banking relationship with the lender you’re interested in, it will be difficult to find a $10 million business loan.
How can I qualify for a $10 million business loan?
Eligibility requirements vary by lender and the type of financing you're interested in. But typically, you and your business will need to meet these requirements:
- Established banking relationship with the lender
- Established business with years of experience
- Strong business revenue to afford repayments
- Strong personal credit
- Collateral to secure the loan
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Thomas Ulbrich
Executive Director
University of Buffalo School of Management's Center for Entrepreneurial Leadership
What types of lenders should I turn to?
How much will a $10 million business loan cost?
It depends on your business and the type of financing you choose. Loans of this size usually come with low rates and long terms — APRs between 6% and 10% and terms ranging from 10 to 25 years.
A $10 million business loan with a 25-year term and a 6% APR has a monthly repayment of $64,430.14. Even an APR on the low end has a high monthly payment, which is why strong revenue is required.
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Will a lender be able to fund a $10 million business loan?
In most cases, you won’t be able to find a lender that offers such a large amount. Your options will be limited to large banks — so if you have plans for future expansion of this size, start planning now.
Opening an account with your preferred lender and borrowing smaller loans is a simple way to create a banking relationship, which may help your chances of being approved for a $10 million business loan in the future. You can determine what kind of loan works best for the funding you need to help compare your options before committing to a loan.
5 types of $10 million business loans
There are several financing options available for $10 million loans — though not all are right for every business.
Business term loan
A business term loan comes in one lump sum that is repaid over a period of 10 to 25 years — plus interest and fees. Term loans of this size might be available through large national or international banks or, more rarely, online lenders that specialize in high-dollar financing.
You generally need to have a record of repaid loans, high monthly revenue and collateral to qualify for a $10 million term loan. It also helps to have an established banking relationship with the lender.
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
Business lines of credit are best for ongoing projects and frequent expenses. They have lower rates than a business credit card, and the $10 million credit limit allows for a wide range of spending. Like term loans, lines of credit are typically available from banks and some online lenders. Expect to meet similar eligibility requirements as well.
Consider using a line of credit if …
- You have costs that are unpredictable
- You and your business partners have excellent personal credit
Consider other options if…
- You only need funds for a one-time expense
- Your business lacks sufficient collateral
SBA 504 loan
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. And while most programs are 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.
Consider using an SBA 504 loan if …
- You need funds to buy property, real estate or equipment
- You have the funds to cover a large down payment
- You have the time to invest in an SBA loan application
Consider other options if …
- You need funding relatively fast
- You need a loan for working capital
- You can’t make a 10% down payment
Invoice factoring
Invoice factoring uses your business’s unpaid invoices from other companies or government agencies as collateral for a loan. Your business sells its unpaid invoices at a discount to a third party. In exchange, your business receives 80% to 95% of the unpaid amount up front and the remaining amount after your clients have paid.
Invoice factoring is typically fast, and your business may be able to qualify without high revenue or excellent credit. However, it’s also expensive compared to more traditional 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 …
- You have time to spend on lengthier applications
- Your business can qualify for a term loan or line of credit
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 (MCAs) have less stringent eligibility requirements and a much faster turnaround — think a few days, rather than weeks.
Instead of interest, MCAs come with a flat fee that your business repays with a percentage of its sales. However, these can be significantly more expensive than traditional financing — and there are very few options available for businesses that need to borrow $10 million.
Consider using a merchant cash advance if …
- You own a retail business
- You’ve struggled to get financing elsewhere
- You don’t have time to spend on a lengthy application
Consider other options if …
- You can qualify for a term loan or SBA loan
- Your business isn’t in a rush for funding
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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 finances. Learn more about your options by reading our guide to business loans.
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