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$500,000 business loans

Get the funds you need to expand, support and invest in your calling.

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A successful business can outgrow its office space, equipment, even its workforce. All good things, but a high-dollar loan isn’t always easy to come by at your local bank.

With the rise of Internet lenders, you have many options for a $500,000 business loan than merely the branch down the block. Many of these online providers look to speed up the application and approval process, which might support your business, you have m loan isn’t always the easiest to come by, even if it sits just below the average of $663,000. We walk you through how to get one, what you need to qualify, what payments you can expect and more.

Our top pick: LoanBuilder, A PayPal Service Business Loans

  • Min. Loan Amount: $5,000
  • Max. Loan Amount: $500,000
  • Requirements: Annual business revenue of at least $42,000, at least 9 months in business, personal credit score of 550+.
  • Simple online application
  • Quick approval decisions
  • Fast funding

Our top pick: LoanBuilder, A PayPal Service Business Loans

Customizable loans with no origination fee for business owners in a hurry.

  • Min. Loan Amount: $5,000
  • Max. Loan Amount: $500,000
  • Requirements: Annual business revenue of at least $42,000, at least 9 months in business, personal credit score of 550+.

Compare $500,000 business loans

Updated August 20th, 2019
Name Product Filter Values Min. Amount Max. Amount Requirements
Your company must have been in business for at least 6 months and have an annual revenue of at least $100,000.
Get a large business loan to cover your financing needs, no matter what the purpose is. Startups welcome with 680+ credit score.
Annual business revenue of at least $42,000, at least 9 months in business, personal credit score of 550+.
Customizable loans with no origination fee for business owners in a hurry.
530+ personal credit score, 3+ months in business, $100,000+ annual revenue
Invoice factoring with the flexibility to fund only the invoices you choose.
600+ personal credit score, 1+ years in business, $100,000+ annual revenue
A leading online business lender offering flexible financing at competitive fixed rates.
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 1 to 5 years, enjoy fixed monthly payments and no prepayment penalties through this award-winning lender.
6+ months in business, $12,000+ monthly revenue, no open bankruptcies
No minimum credit score requirement and early repayment discounts for qualifying borrowers.
3+ months in business and $10,000+ monthly revenue or 6+ months in business and $2,000+ monthly revenue

Compare up to 4 providers

How to get a $500,000 business loan

The typical small business loan averages $663,000 — a tad more than the $500,000 your business might need. Still, it’s a large enough amount that your small business might have difficulty qualifying.

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

  • At least one year in business. You might get away with a mere 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 good or excellent credit.
  • 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 700 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.

Getting a $500,000 loan from the SBA

Loans backed by the Small Business Administration are a choice for business owners who have a hard time qualifying elsewhere. But they also come with some of the highest rejection rates in the market.

The most common SBA loans for $500,000 are through the 7(a) or 504 programs, depending on the purpose of your loan. SBA 7(a) loans are designed for general business use, while 504 loans are designed to cover real estate or equipment purchases.

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. But services like services like SmartBiz can help with the SBA process, handling the nitty-gritty and potentially speeding things up.

Find out how SBA loans work

Cost to pay back a $500,000 loan

How much you’ll repay on a $500,000 business loan depends on two main factors: your loan’s APR and term. Your APR is an expression of your loan’s interest rate and fees as a percentage. The loan term is how long you have to pay it back. The shorter your loan term, the higher your monthly repayments tend to be. However, longer loan terms mean you’ll end up paying more in interest.

Let’s take a look at an example. Say your business takes out a $500,000 loan with an APR of 18% and a two-year term. Under this loan, your business can expect to pay $24,962.05 monthly for a total $99,089.22 in interest and fees.

Case study: Jim buys a fleet of vans for his business

Imagine this scenario: Jim recently moved his assisted living facility to a new location so that it could take in more residents. With the move came a need for two new vans. To buy a new fleet of wheelchair-accessible vans, Jim figured he needed a $500,000 business loan.

He usually works with Bank of America for business financing, but Jim found its turnaround time too long in this instance. Hearing more about online lenders, Jim researched his options and narrowed it down to OnDeck and Fora Financial.

He prequalified with each lender and weighed his quotes for a $500,000 loan.

LenderCostLoan termMonthly repaymentTotal cost
OnDeck17% AIR36 months$17,826.36$141,749.10
Fora Financial20% APR15 months$37,949.02$69,235.25

Despite Fora Financial costing him less in the long run, Jim eventually decides to take advantage of OnDeck’s more affordable monthly repayment, which better matched his business’s cash flow.

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.

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.

To more easily compare offers and rates, consider prequalifying with multiple lenders to more easily compare rates, monthly repayments and what you’ll pay over the life of your loan.

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

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