It’s common to see large loans get low interest rates — you may see rates as low as 3% to 7% if you have stellar credit or rates between 6% to 10%, depending on the type of financing.
However, low rates tend to come from big banks. Most Small Business Administration (SBA) loan programs have limits of up to $5 million and may have higher rates, often capped at 9.5% to 11%.
Before you sign the dotted line, compare paths in getting 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. And it’s also one of the better ways to get a low interest rate on these large loans.
You may qualify for $10 million through the SBA 504 program — but this financing is limited to commercial real estate, not working capital.
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. There are nonbank lenders and marketplaces such as Lendio, Nav and Biz2Credit that offer business loans in the millions, but amounts are often capped at $5,000,000 to $6,000,000.
If you’re a small business, you may not qualify for a $10 million loan. Strong revenue is required due to the large payments on these loans. Compare other small business loan options.
Several financing options are available for $10 million loans — though not all are right for every business.
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. Some online lenders specialize in high-dollar financing, but it’s rare.
You generally need 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 …
Consider other options if …
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 …
Consider other options if …
The SBA 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 loan 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 …
Consider other options if …
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. Compare the top factoring companies here.
Consider invoice factoring if …
Consider other options if …
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 very few options are available for businesses that need to borrow $10 million.
Consider using a merchant cash advance if …
Consider other options if …
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. Over the course of the loan term, that loan would cost around $9,329,042.04 in interest.
Even a low APR on these large business loans creates a high monthly payment, which is why strong revenue is required.
Simply enter in an amount, loan term and interest rate to see how much a $10 million business loan may cost you.
|
Your loan
|
|---|
| Loan amount |
|
$
|
| Loan terms (in years) |
|
|
| Interest rate |
|
%
|
or
Compare business loans now| Principal | $ |
|---|---|
| Interest | $ |
| Total Cost | $ |
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:
It’s not likely. Most lenders that offer funding of this size require your business to be around for at least a few years and have a proven track record of high revenue. To compare lending options for new businesses, see our list of the best startup business loans.
It might be possible in some cases, but most business loans of this size require some kind of collateral — even if it doesn’t fully back the loan. A merchant cash advance technically doesn’t require any physical collateral, though you’re pledging a percentage of your future sales.
Narrow down top business loan providers by minimum amount, maximum amount and more to find the best for your budget and financial goals. Select Compare for up to four products to see their benefits side by side.
The Finder Score crunches 12+ types of business loans across 35+ lenders. It takes into account the product's interest rate, fees and features, as well as the type of loan eg investor, variable, fixed rate - this gives you a simple score out of 10.
To provide a Score, we compare like-for-like loans. So if you're comparing the best business loans for startups loans, you can see how each business loan stacks up against other business loans with the same borrower type, rate type and repayment type.
Biz2Credit connects you with lenders to get a loan to grow your business. Compare the loan types offered and see how they stack up to other business loans.
Getting a business loan can be hard when banks and other traditional lenders have strict requirements. See what startup loan options are available.
Find out how Cardiff’s fast business loans work and why quick cash can come at a cost.
A review of Shield Funding, offering short-term business loans up to $1 million.
Lendzi lets you compare multiple business loan options in one place. Here’s how it works.
A review of Fundo, a financial services company that offers merchant cash advances to small businesses, gig workers, freelancers, contract workers and other self-employed individuals.
A review of Giggle Finance, a fintech offering revenue-based financing for self-employed individuals, gig workers and small businesses.
Compare top lenders with SoFi’s new business lending marketplace. No fees or credit check.
There’s no fixed cutoff for your credit score to get a business loan, but your score could limit what types of financing you qualify for.
Compare top business loan marketplaces similar to Lendio to find the one that could work for your business.
