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How to get a $500,000 business loan

Compare lenders to find competitive rates and terms that fit your business's budget.

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Editor's choice: Lendio business loans

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Getting a $500,000 business loan can enable you to grow your business in numerous ways — this includes expanding operations, hiring more employees and buying new equipment and offices.

However, you may have to wade through strict requirements in order to get approved. Before you apply, make sure that your credit is up to snuff and that you have all of the documents you need.

How to apply for a $500,000 business loan

The application process varies depending on the lender you end up with. But you’ll generally follow these steps to find a lender that fits your business’s needs and apply for a $500,000 loan.

  1. Compare lenders. Find and compare lenders that offer $500,000 loans by looking at factors like the loan’s APR, terms and requirements. Look got lenders that offer well over this amount — it’s often harder to qualify for the maximum loan amount.
  2. Check your eligibility. Online lenders often have a form you can fill out online to find out if you’re eligible and check your rates. But if you’re applying through a bank, you might have to call in to make sure your business is eligible for a $500,000 loan before you fully apply.
  3. Gather the required documents. It helps to have your personal and business tax returns, profit and loss statements, and bank statements ready when you first fill out the application to help answer questions. You might also need to submit these documents digitally or physically.
  4. Fill out the application. This can take a few minutes to over an hour, depending on the lender and type of loan.
  5. Submit any additional information. Your lender will likely review your application and reach out for more information or documents. Usually you can submit these online, by mail or in person at a branch in some cases.
  6. Read and sign the contract. Review your final offer, making sure the rates, terms and monthly payments fit your business’s budget. If you agree, sign and submit your contract.

The turnaround time on $500,000 loans is often longer than loans of smaller amounts — lenders tend to be more thorough with your application. While some lenders advertise a 24-hour turnaround time, it could take a few business days to a week to receive your funds.

Compare $500,000 business loan providers

Select your time in business, annual revenue and credit score ranges to find lenders that you might qualify with. Click Check Eligibility to get started on your application. Or, visit our review page by clicking More Info.

Data indicated here is updated regularly

Name Product Filter Values Loan amount APR Requirements
Lendio business loans
$500 – $5,000,000
Starting at 6%
Operate business in US or Canada, have a business bank account, 560+ personal credit score
Submit one simple application to potentially get offers from a network of over 300 legit business lenders.
ROK Financial business loans
$10,000 – $5,000,000
Starting at 6%
Eligibility criteria 3+ months in business, $15,000+ in monthly gross sales or $180,000+ in annual sales
A connection service for all types of businesses — even startups.
SmartBiz business loans
$30,000 – $5,000,000
4.75% to 7.00%
650+ personal credit score, US citizen or permanent resident, 2+ years in business, $50,000+ annual revenue, no outstanding tax liens, no bankruptcies or foreclosures in past 3 years
Get funding for your small business with a government-backed loan and extended repayment terms.
Fundera business loans
$2,500 – $5,000,000
7% to 30%
$300,000+ of annual revenue, 680+ personal credit score, in business for 3+ years
Get connected with short-term funding, SBA loans, lines of credit and more.
LendingClub business loans
$5,000 – $500,000
12.15% to 29.97%
12+ months in business, $50,000+ in annual sales, no bankruptcies or tax liens, at least 20% ownership of the business, fair personal credit score or better
With loan terms that vary from 12 to 60 months, enjoy fixed monthly payments and no prepayment penalties through this award-winning lender.
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Where to get a $500,000 business loan

Most lenders offer $500,000 business loans, including banks, credit unions and online lenders. Established businesses might find competitive rates on a business loan of this size with a large national bank. Newer businesses might want to try applying with online lenders — and backing their loan with collateral.

How to qualify

A $500,000 business loan sits right below average. But it’s still a large enough amount that your small business might have difficulty qualifying if it’s just getting started.

To qualify for a business loan of this size, you and your business must typically meet criteria that include:

  • At least one year in business. You might get away with six months in business for smaller amounts, but lenders tend to require stronger business experience for larger loans.
  • Good personal credit. Business lenders tend to rely on personal rather than business credit scores, and it’s also common for business lenders to ask for a personal guarantee from the owner. You generally need a credit score of 670 or higher.
  • Minimum annual revenue. You’ll need to prove that your business brings in enough money to comfortably repay a loan. It’s not easy to nail down the minimum annual revenue you’ll require for a high-dollar loan, but expect the number to be in the millions.

What credit score do I need?

Typically, you need a personal credit score of at least 670 or higher to qualify for $500,000 in business financing. Generally, the higher your score, the more competitive the options you’ll have to choose from.

Even lenders with low overall credit score requirements might require higher scores for large loans. For example, OnDeck requires a personal credit score of 500 or higher to qualify for a loan in general. But you’ll have a better chance of approval for its maximum $500,000 financing amount if your score is 775 to 800. To compare top options for good credit borrowers, check out our guide.

Unsecured business loans for $500,000

Most $500,000 business loans require some kind of collateral — especially if it’s an equipment loan or for commercial real estate. However, it is possible to get an unsecured business loan of $500,000 from select online lenders.

Typically, you’ll need a higher credit score and stronger business financials to qualify for an unsecured business loan. You also might need to prove more business experience, requiring at least two years of experience for approval.

How much does a $500,000 loan cost?

Since $500,000 business loans tend to have tight credit requirements, if you can qualify for this loan you can likely qualify for a competitive rate.

Depending on your business’s financials and your credit, you can expect an APR on the lower end of the spectrum of rates a lender offers, possibly around 10%. If you apply for an SBA loan, rates are capped at the prime rate plus 2.25% to 2.75% for most programs, depending on your loan term. This doesn’t include SBA loan fees, which vary depending on the loan.

Loans of this size also typically come with a loan term of at least a few years. Use the calculator below to find out how much your loan might cost, based on different rates and terms.

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How do payments on a $500,000 loan work?

It depends on your loan. Most $500,000 loans are term loans, which come with fixed monthly repayments. Some short-term business loans come with biweekly, weekly or even daily repayments, though short-term loans in such a high amount aren’t common.

If you apply for a merchant cash advance, you’ll repay it with a percentage of your business’s daily sales. And if you get an advance on your unpaid invoice with invoice factoring, you won’t repay the factoring company at all — you just won’t get your invoice’s total value.

Can I get a $500,000 SBA loan?

Loans backed by the Small Business Administration (SBA) offer low rates and high loan amounts to businesses that have a hard time qualifying elsewhere. But they also come with some of the highest rejection rates in the market. If you decide to borrow

Which SBA programs offer $500,000 loans?

The following type of SBA loans are available at $500,000:

  • 7(a) loans. General-use working capital loans for any legitimate expense. This is the SBA’s most popular program
  • 504 loans. Real estate and equipment financing. This is the second-most popular SBA program.
  • CAPLines. Lines of credit to cover working capital, inventory, unpaid contracts and debt consolidation.
  • International Trade loans. General-use working capital loans for expenses related to international trade.
  • Export Working Capital loans. Working capital loans to cover export-related costs.
  • Export Express loans. Working capital loans to cover export-related costs with a quick turnaround.
  • Disaster loans. Financing directly from the SBA to cover your business’s losses during a disaster, including the COVID-19 outbreak.

Can I qualify?

To qualify, you must meet the SBA’s laundry list of requirements, including complicated size standards and your personal history of repaying debt. You won’t qualify if you’re a part of the SBA’s list of ineligible industries, including insurance companies and investment banks.

It’s a long process that takes lots of paperwork and several months unless you apply for an express or disaster loan. But services like SmartBiz can help with the SBA process, handling the nitty-gritty and potentially speeding things up.

Find out how SBA loans work

Bottom line

Don’t look only at your lender’s minimum requirements when applying for a $500,000 business loan. Typically, you’ll need good credit and at least a year in business to get approved for high amounts, even with a secured option.

Get started on your search by visiting our comprehensive guide to business loans, where you can compare lenders and learn more about the nuance of business financing.

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