When it comes to $50,000 business loans, there are a lot of options to choose from. The challenge is narrowing down the type of loan you need and getting the best rate. Whether you’re after a short-term loan, a business line of credit or equipment financing, we help you compare the best $50,000 loans for your needs.
If you’re looking for a $50K business loan, you have a lot of options to choose from.
If you’re after a small business loan, start by comparing the top small business loans on the market.
Compare these lenders that offer $50K business loans. Select Go to site to get started on your application. Or, visit our review page by choosing More info.
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.
You can apply for a $50,000 business loan by comparing lenders, prequalifying and filling out an application with your final pick.
Here are six steps to getting a business loan:
You’ll typically need to meet the following requirements to qualify for a $50K business loan.
The cost of a $50,000 business loan depends on the interest rate and loan term you qualify for. You may also have to pay an origination fee of around 1% to 5% 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.
However, the actual cost of a business loan comes down to what type of loan you get, the lender and the strength of your financials and credit profile. Use our business loan calculator to estimate your monthly payment and total loan cost based on different rates and terms.
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Business loans for $50K can cover a wide range of financing needs for your business. Here’s a list of the most common types and when they might make sense.
Business term loans are probably the most common type of business loan and offer both short-term and long-term options, with loan amounts up to millions of dollars. Funds are disbursed in a lump sum payment, come with fixed interest rates and are typically paid back in equal monthly installments, although some short-term loans may require weekly payments. Rates for term loans are usually some of the most competitive in the business loan market.
Similar to a credit card — but with access to cash — a business line of credit allows you to borrow as much as you need up to your approved credit limit, and it replenishes as you pay it back. A line of credit can be more flexible than a term loan because you only have to pay interest on the funds you withdraw, but loan terms are generally short. They can be good for seasonal cash flow shortages or to fund ongoing projects.
SBA loans are backed by the federal government but provided by banks, credit unions, online lenders and community development financial institutions (CDFIs). Loan amounts can reach as high as $5 million, but its microloan program offers business loans for $50,000 or less. Rates for SBA loans are typically very competitive, but they can be hard to qualify for and the loan process can take weeks or even months.
Equipment loans are a type of secured financing where the purchase acts as collateral, similar to an auto loan. Secured equipment loans often have better rates than unsecured business financing, but there is the added risk of losing the equipment if you can’t make your payments. Plus, some lenders require a down payment for equipment loans, so you may have to come up with some cash.
A merchant cash advance — also known as a revenue advance or business cash advance — is an advance based on your future debit and credit card sales. This type of financing makes sense for retailers and others that have a lot of credit card sales, and how much you can borrow depends largely on your average monthly revenue. Funding is typically fast for MCAs, but it’s an expensive form of financing and usually requires weekly or daily repayments.
Also known as accounts receivables financing, invoice financing is a type of short-term funding that leverages your unpaid invoices in exchange for cash. You take out an advance based on a percentage of your unpaid invoices and repay it as your customers pay you. This form of financing is expensive, but it can be easy to qualify for. However, it is only suitable if you invoice other businesses or government agencies.
Invoice factoring is similar to invoice financing in that it leverages your invoices for cash. However, instead of taking an advance, you sell your outstanding invoices to a factoring company in exchange for a percentage of their value. Your customers pay the factoring company directly and then it sends you the remaining balance minus a fee. While invoice factoring also offers fast funding, it’s not cheap — or suitable for all businesses.
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.
If you have bad credit, you may be able to 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, you could ask a loan officer if they can make an exception to their credit policy based on other aspects of your business’s finances. You may also be able to qualify for a business loan with bad credit if you offer to secure the loan with collateral.
For certain types of loans, like merchant cash advances or invoice factoring or financing, lenders may not consider your credit score at all. But these can be expensive, with rates comparable to payday loans.
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 more providers by reading our guide to business loans.
In the world of business financing, $50,000 isn’t a large amount, which can make it easier to get loan approval. However, you’ll still need to meet the lender’s credit and revenue requirements, or you may be able to use collateral to secure the loan.
Credit score requirements vary by lender and loan type. For example, a term loan from a bank may require a credit score of at least 670, whereas online lenders may accept lower scores.
You can get a $50,000 startup loan from a microlender, community bank and some online providers. But your business needs to be around for three to six months to qualify for a startup loan of this size. If you need seed funding to get your business off the ground, a personal loan can also be a good choice.
Yes, you may be able to get a $50,000 loan backed by the Small Business Administration, commonly known as an SBA loan. This 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.
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Achieve your small business goals with a flexible line of credit from Kabbage. Apply online within minutes.
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