Expand your calling or invest in your future with a boost in capital.
A business loan can help fill gaps in your cash flow, update equipment or purchase commercial vehicles to get more done more quickly. Qualifying for $100,000 is possible, even if your business hasn’t been around that long — but it takes some work.
How to get a $100,000 business loan
For a loan this size, you’ll likely need to meet more than a lender’s advertised minimum requirements.
We asked high-dollar online lenders what they look for in a borrower. While providers vary, you stand a good chance of approval for $100,000 in financing if you can check off most of the boxes below:
- Annual revenue of $1 million or more. You’ll want to prove that you bring in enough money to comfortably afford the monthly repayments on a $100,000 loan.
- At least one year in business. Typically the longer you’re in business, the better. Many lenders want to see two years or more for loans as large as $100,000.
- Good personal credit. Though you can find financing with a low credit score, you’ll find more competitive rates with a score of 670 or higher.
- Strong cash flow. Your business must prove that money comes in regularly enough to consistently repay your loan.
What credit score do I need?
Credit score requirements vary widely by lender. For instance, OnDeck requires a credit score of at least 750, while Fora Financial is willing to work with scores as low as 500.
Generally the higher your credit score, the more competitive your options. It could be difficult to find financing of $100,000 if your score is below 670 — the minimum to qualify as “good.”
Compare top providers for $100,000 business loans
How much does it cost to repay a $100,000 business loan?
Your loan repayments ultimately depend on the APR and loan term you find. APR is a representation of your loan’s rates and fees, expressed as a percentage. Your loan term is the time you have to repay your total loans.
Online term loans come with APRs that range from 7% to 100%, though you could expect a rate of 20% on a $100,000 loan. Term loans can go up to seven years, but your typical $100,000 business loan comes with a term of around three years.
For a $100,000 loan with a 20% APR and a three-year term, your business’s monthly repayments would be $3,716.36. You’d pay a total $33,788.90 over the life of the loan in interest and fees.
Case study: Thorn Tree Brewers buys new barrels
Let’s say that Thorn Tree Brewers wants to expand its production. Thorn Tree’s owner, Spencer, crunches the numbers to discover he needs a $100,000 loan to cover the costs of more barrels. Spencer compares several online lenders, narrowing his options to Fora Financial, OnDeck and LendingClub. He applies to prequalify with all three, learning the APR and terms he’d face with each.
|Lender||APR offered||Term||Est. monthly repayment||Est. total cost|
|Fora Financial||30%||1 year||$9,748.71||$16,984.55|
|OnDeck||24% AIR||3 years||$3,923.29||$41,238.27|
After reviewing the numbers, Spencer continues his application with LendingClub. It might require a longer turnaround than OnDeck, but its monthly repayments are more in line with Spencer’s budget than the other two options. And the total cost is some $11,000 less expensive than OnDeck’s.
Secured business loans for $100,000
At the $100,000 level, you have your pick between business loans with or without collateral. Secured business loans tend to require a specific purpose — buying a vehicle, equipment or real estate, for instance. You can sometimes find general-use financing backed by a lien in your business’s assets.
Secured loans might be an option for a business that just meets the requirements for a $100,000 loan. It can also help your business qualify for more competitive rates, because it’s less risky for the lender.
Generally, $100,000 business loans aren’t for new businesses. Your business typically needs to be around for at least a year and make at least $1 million in annual revenue. While good credit isn’t absolutely necessary, your options may be limited with a credit score that’s under 670.
Read our business loans guide to compare business lenders or learn more about how these loans work.
Frequently asked questions
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