Compare $600,000 business loans

What types of business loans for $600,000 are available?

Business loans for $600,000 cover a wide range of funding needs. Here’s a list of the most common types.

To learn more about business loans, check out our comprehensive guide to business loans – where you can learn more about the nuances of business financing.

Secured vs. unsecured business loans for $600,000

Business loans can either be secured or unsecured. Loans in the $600,000 range generally require collateral — especially if it’s an equipment loan or for commercial real estate. That said, getting an unsecured business loan of $600,000 may be possible from certain online lenders.

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

Where can I get a $600,000 business loan?

You can get a $600,000 business loan from banks, community lenders and lenders that offer financing backed by the Small Business Administration, or SBA. Some online lenders, like Fora Financial, also offer $600,000 in financing — though it’s not as common.

Bank loans are best for more established businesses that have been around for at least three to five years and have positive revenue. SBA loans can be a good choice if your business can’t qualify with a bank, since they’re partly backed by the federal government.

A local lender like a community development financial institution (CDFI) could also be a good low-cost option for new businesses and bad credit borrowers. Online business lenders also often work with startups or accept bad credit. But they tend to charge higher rates and fees than other providers.

How to qualify for a $600,000 business loan

To qualify for a $600K business loan, you and your business should be prepared to meet the following criteria:

• At least one year in business. Most lenders require you to be in business for one to two years. You might get away with six months in business for lower amounts, but you’ll need a stronger credit score and more business experience.
• Minimum monthly revenue. A general rule of thumb is that lenders will loan you 1x to 1.5x of your monthly revenue. To get a $600,000 loan, you’ll generally need to be earning $600,000 or more monthly.
• Good personal credit. With lenders looking at your personal credit score, you generally need a credit score of 670 or higher, although 775 and up is better for a $600K loan. Compare top options for good credit borrowers in our guide on business loans.
• A personal guarantee. All business owners will likely be required to provide a personal guarantee. This is especially for unsecured loans that aren’t backed by any kind of collateral.

How much does a $600,000 loan cost?

The cost of a $600,000 loan varies depending on your interest rate, fees and loan term.

For example, let’s say your loan came with a 9% APR and a 10-year term. This particular $600,000 loan would come with a $7,600.55 monthly payment and a total cost of $312,065.57 in interest and fees by the time your term is up.

See how much a $600,000 business loan costs at different rates and terms by using our calculator.

How to get a $600,000 business loan

While the application process differs depending on the lender and loan type, follow these steps to apply for a $600,000 loan.

1. Choose the type of loan you need before you start looking at lenders. For example, a $600,000 equipment loan is the way to go if you need more office supplies. But a line of credit could be better if your business consistently needs working capital.
2. Compare business lenders online or by setting up an appointment with a loan officer. Look into all of your options — including banks, CDFIs and SBA lenders. Ask for a quote from your top choices before you make a decision.
3. Gather the documents you need to complete the application. Most lenders will ask for bank statements, tax returns, financial projections and statements — at a minimum. SBA loans tend to have more complicated applications.
4. Complete the application, following your lender’s directions. This can take a few days for loans of this size — especially when it comes to bank loans and SBA funding. Your lender might also reach out to ask for more documentation after you submit your application, depending on the business.
5. Get your collateral professionally appraised if the lender requires it. A collateral appraisal is standard for real estate financing, but it’s also often necessary for equipment or inventory financing of this size.
6. Review and sign your loan offer. Take note of due dates, rates, fees and the repayment plan. Save a copy for reference when you need.

Can I get a $600,000 SBA loan?

Get a $600,000 SBA loan through most SBA programs — though most low credit-friendly programs don’t have loan amounts of this size available.

To qualify for an SBA loan, your business must show that it can’t qualify for a bank loan — that’s why it’s helpful to apply with bank and SBA lenders. And while not mandated by the SBA, most lenders also require owners to have a 620 credit score.

The SBA also requires all businesses to meet its definition of a small business, which varies by industry. In some cases, you’ll be denied an SBA loan if you earn more than $1 million in annual revenue — which can make affording repayments difficult.

Which SBA programs offer $600,000 loans?

The most popular SBA programs offer $600,000 loans — though not all. You might want to consider these options, depending on your financing needs.

• SBA 7(a) loans are government-backed term loans for working capital, refinancing and almost any other one-time expense. When applying for $600,000, even large lenders like Live Oak Bank could be a good choice.
• SBA CAPLines are SBA-guaranteed lines of credit for expenses like ongoing working capital, filling a government contract, completing a construction project or preparing for a seasonal spike in sales.
• SBA CDC/504 loans are government-backed financing specifically for real estate or equipment. These are funded by both a bank and a certified development company, or CDC.

If your business needs an SBA disaster loan, $600,000 loans are available to businesses with that amount of eligible expenses.

SBA International Trade and Export Working Capital loans are also available at $600,000. However, Community Advantage, SBA Express and Microloans aren’t available at this size.

Bottom line

To get a $600K loan, you’ll need good credit and at least a year in business to get approved for such a high amount, even with a secured loan. To compare lenders and get prequalified, see our picks for the best business loans.

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