To help you choose the best $1 million business financing for your company, we’ve reviewed over 130 providers — including SBA loans, term loans, lines of credit, merchant cash advances and more.
Narrow down your choices by comparing rates and requirements, selecting Compare on up to four lenders to weigh the benefits side by side. Select Learn more to visit the lender’s site or More info to read our review.
Although each lender has its own process, these steps should help guide your business toward the right loan option:
Banks, credit unions and online lenders frequently offer loans up to $1 million for established businesses. The Small Business Association (SBA) also backs loans of $1 million, but to apply for funding, you will need to submit an application through an SBA-approved lender.
Since the federal government guarantees SBA loans, they’re one of the most affordable options for a small business owner looking for a large loan. They’re also one of the most difficult loans to qualify for. Only 100,000 applicants were approved across all SBA programs in 2019, according to data from the SBA.
Here’s how a $1 million loan breaks down for the SBA 7(a) program:
It depends on you and your business. If you exceed a lender’s minimum requirements, you might not have any trouble. But if your business is less than a year old, not yet profitable or you have poor personal credit, you may be unable to qualify for such a large loan. Having an unpredictable cash flow or low revenue can also get your business rejected.
Your business needs to prove it can afford a $1 million business loan. While requirements vary by lender, you’ll typically need to meet the following criteria to be considered:
$1 million business loans tend to come with longer terms — typically between 10 to 25 years — and lower rates. But monthly repayments tend to be high because the principal is so large. On average, online lenders tend to offer higher rates than local banks, so you might want to go with a bank you trust if keeping the cost down is your top priority. Use our calculator to estimate your loan’s monthly cost.
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Well-established enterprises with high annual revenues are most likely to qualify for business loans of $1 million or higher. To find more lenders and learn about your other financing options, check out our business loans guide. To learn more about what rates to expect, read our guide to interest rates on business loans to learn more about what to expect.
Can I find an unsecured business loan for $1 million?
It depends on your business’s revenue, age and profit. In general, lenders require your business to back your loan with an asset, but some lenders offer both secured and unsecured loans for loans of $1 million or larger.
Are startups eligible for $1 million business loans?
Probably not. Even business loans for startups typically stop well under $1 million. Instead, you might want to tap into other resources like crowdfunding, investors or grants.
Can I get a $1 million business loan with bad credit?
It’s possible, though it might not be cheap or easy to find a lender willing to offer that amount. Typically, you need good or excellent credit to qualify for the most competitive rates on large loans.
Can I buy a business with a $1 million loan?
Yes. Many lenders offer financing designed to cover business acquisition costs.
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what is the lowest interest rate one can get for a one million dollar unsecured loan?
Hi Sybil,
Thanks for getting in touch with finder. I hope all is well with you. :)
As of now, we currently don’t have this specific information since most lenders would not go far from the average market interest rate. However, generally speaking, online lenders tend to charge a higher interest rate compared to traditional banks. Perhaps, you can also take into consideration SBA loans. They could be the one that offers the lowest interest rate since they are partly backed up by the government. However, getting approved by them is not that easy.
I would highly recommend that you consider all your options. Check terms and conditions and eligibility requirements. From there, you should be able to find the right loan for you.
I hope this helps. Should you have further questions, please don’t hesitate to reach us out again.
Have a wonderful day!
Cheers,
Joshua