Compare $50,000 business loans

What types of business loans for $50,000 are available?

$50,000 business loans cover a wide range of financing scenarios. Here’s a list of the most common types.

Secured vs. unsecured business loans

Business loans can either be secured or unsecured. A secured loan is backed by collateral from your business — like real estate, equipment or other valuable assets. An unsecured loan is based on your creditworthiness and doesn’t require collateral. But with an unsecured loan, you’ll likely need to provide a personal guarantee.

Where can I get a $50,000 business loan?

You can get cashflow loans of $50,000 from most providers.

• Online lenders can get your business $50,000 as soon as the next business day and tend to have lower credit and time-in-business requirements.
• Community and regional banks can take a few weeks to fund a $50,000 business loan but offer expert advice and faster funding in the future.
• Microlenders sometimes offer business loans as high as $50,000, though the maximum loan amount for bad credit and startup programs might be lower.
• Large national banks with small business programs sometimes also offer $50,000 business loans. But many prefer to work with large and midsize businesses.
• Credit unions with business loan programs often offer $50,000 — but you need to become a member to qualify.

If you’re after a small business loan, compare the top small business loans of 2022.

Calculate the cost of a $50,000 business loan

The cost of a $50,000 business loan depends on the APR and term you receive. This typically includes an origination fee of around 1% to 6% that’s either added to or deducted from your balance at closing. For a $50,000 loan, that works out to $500 to $3,000.

Use our calculator to estimate your monthly payment and total loan cost based on different rates and terms.

How to apply for a $50,000 business loan

You can apply for a $50,000 business loan by comparing lenders, prequalifying and filling out an application with your final pick.

Here are 6 steps to getting a business loan:

1. Determine the type of loan you need. Before you start comparing, decide what type of loan you need. If you’re funding a one-time cost, look for a $50,000 term loan. If you have ongoing expenses, look for a line of credit with a limit of $50,000 or higher.
2. Assess your business’s priorities. Do you need the $50,000 as soon as possible, or would you prefer to take your time if it could get you a better deal? Online lenders can get you funding fast, while banks tend to offer less expensive loans.
3. Compare lenders. Compare several lenders — including banks and online lenders — to get an understanding of the different rates, fees, loan amounts and repayment terms available on the type of product you’re interested in.
4. Get prequalified. After you’ve made a list of lenders you’re interested in, get a quote from your top choices by doing a prequalification. This allows you to compare personalized rates and terms before applying and doing a hard credit pull.
5. Fill out an application. Once you’re ready to move ahead and do a hard credit check, fill out the lender’s application, supplying all of the requested information and documentation. Be as thorough as possible to avoid delays in processing.
6. Wait for approval and funding. After submitting your application, it can take anywhere from a day to several weeks to get approved, depending on the lender and type of loan. Once approved, funding time may be anywhere from same day to several business days.

How to get a $50,000 startup loan

You can get a $50,000 startup loan from a microlender, community bank and some online providers. But your business will need to be around for three to six months to qualify for a startup loan of this size from these providers.

If you need seed funding to get your business off the ground, a personal loan can also be a good choice. Some community banks also offer loans to start a business, but these are also based on your income. To qualify, you generally need to have a credit score of at least 670 and enough regular income to support payments on the loan.

Lending marketplaces like Credible provide prequalified rates for borrowers with poor to excellent credit to compare loans up to $100,000.

How to get a $50,000 business loan with bad credit

If you have bad credit, you can get a $50,000 business loan from online lenders, microlenders and even some community banks. Look for the lender’s credit requirements before you apply to make sure they accept your credit rating. Or, if you’re applying at a community bank, ask a loan officer if they can make an exception to their credit policy based on other aspects of your business’s finances.

For certain types of loans, like merchant cash advances, lenders don’t consider your credit score at all. But these can be highly expensive, with rates comparable to payday loans.

Can I get a $50,000 SBA loan?

Yes, you may be able to get a $50,000 loan backed by the Small Business Administration, commonly known as an SBA loan. This even includes the SBA microloan program, which caps out at $50,000.

However, other programs like SBA 7(a) loans and Express loans might be a better choice if you can qualify. A $50,000 loan through these programs often comes with lower maximum rates and SBA loan fees.

Bottom line

Make sure your business is getting the kind of financing and support it needs by considering all your options before you apply for a $50,000 loan. Compare even more providers by reading our guide to business loans.

Other business loan amounts:

Need a different loan amount? Select one of the options below.