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Banks, credit unions and online lenders all offer $100,000 business loans of different types, including: term loans, lines of credit, accounts receivable financing and more. However, your business needs to meet basic annual revenue and time in business requirements to qualify for a loan — no matter which lender you choose.
Compare providers for $100,000 business loans
To start the comparison process, select your business’s average annual revenue, time in business and your personal credit score. Then click Show Loans to see your options.
The cost ultimately depends on your APR and loan term. Standard business loans and lines of credit may have an APR of 7% to 100%. Short-term business options like merchant cash advances (MCAs), invoice factoring and invoice financing all have higher rates, which make them a more expensive — if quicker — choice.
The repayment period also impacts the final cost. You can expect a loan term of up to seven years, although on average a $100,000 business loan comes with a term of three years.
For a $100,000 loan with a 20% APR and a three-year term, your business’s monthly repayments would be $3,716.36. You’d pay a total $33,788.90 over the life of the loan in interest and fees. To get great rates, compare the top excellent-credit business loans with our guide.
The application process depends on the type of loan you plan on borrowing, but these general steps should help you with most lenders.
Determine your business’s needs. Speak with your financial advisor or go over your finances to confirm your business needs a $100,000 loan and can handle repayments.
Compare lenders. Use our table of lenders to start your search. You should also check with your current bank and other financial institutions to compare their rates and terms.
Prepare financial documents. A lender may ask to see proof of revenue and a business plan when you apply. Be sure to request a list of all the required documents to ensure you have everything your lender needs.
Submit a complete application. Once you have your documents gathered, work with your lender to submit your application. Some may have an online process while others will require you to visit a branch.
How to qualify for a $100,000 business loan
For a loan this size, you’ll likely need to meet more than a lender’s advertised minimum requirements.
We asked high-dollar online lenders what they look for in a borrower. While providers vary, you stand a good chance of approval for $100,000 in financing if you and your business meet the following qualifications:
Annual revenue of $1 million or more to comfortably afford the monthly repayments
At least one year in business, but many lenders want to see two years or more
Strong cash flow that comes in regularly enough to consistently repay your loan
Good personal credit of 670 or higher
If you’re looking for a $100,000 loan to start a business, you might find it challenging — most lenders require at least one year in business and proof of revenue before they’ll give you a loan.
According to the Federal Reserve Banks’ Small Business Credit Survey, 29% of startup non-employers that have been in business for under two years applied for financing, and 31% of those that applied were fully approved. However, you may be able to use a personal loan for business expenses. You can also explore the best loans for startups to better understand your options.
What credit score do I need?
Credit score requirements vary widely by lender. For instance, OnDeck requires a credit score of at least 625, while Fora Financial works with scores as low as 500.
Generally the higher your credit score, the more competitive your options. It could be difficult to find financing of $100,000 if your score is below 670 — the minimum to qualify as good credit. And it’s rare for anyone to consider your business credit score alone. Typically, lenders ask to see your personal credit score or a combination of your personal and business scores.
Can I get a $100,000 business loan with bad credit?
Yes, it’s possible. Some lenders work with borrowers that have scores as low as 500. That’s because lenders consider other factors like your cash flow and revenue to determine your ability to repay the loan. But if you do qualify, you’ll likely end up with shorter terms and less competitive rates than borrowers with good credit.
Types of $100,000 business loans
There are a variety of business loan options for $100,000. These are the most common options:
Type of financing
Description
Use
Short term loan
An unsecured lump sum loan with repayment terms up to 18 months
To cover unexpected costs or to survive a downturn
Business term loan
A unsecured lump sum loan with repayment terms up to 10 years
To provide working capital for more established businesses
Business line of credit
A revolving line of credit for ongoing needs
To tap into funds as needed and pay off as you go
Business cash advance
A quick turnaround loan for newer businesses
To borrow against the money you plan to make
Accounts receivable financing
A loan with an amount tied to your receivables
Lets you access cash by selling your purchase orders or receivables
SBA loan
A low interest small business loan partially backed by the government
To provide working capital to grow your business
Startup loan
A term loan for businesses with limited credit history
To provide working capital to get your business off the ground
Equipment financing
A collateralized term loan to fund equipment
To pay for any kind of equipment for your business
Business credit card
A revolving line of credit for ongoing needs
To tap into funds as needed and pay off as you go
Unsecured business loans
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 extended based on your creditworthiness alone and isn’t backed by collateral. But with an unsecured loan, you’ll likely need to provide a personal guarantee.
$100,000 SBA loans
The SBA offers a variety of loans for businesses looking for $100,000 — often with lower rates than a traditional loan from a bank or online lender.
SBA (7)a program. The 7(a) loan program provides funding for working capital and other business expenses.
SBA Express program. Express loans are also meant for general business expenses, but the application process requires less paperwork, cutting the time it takes to get funding.
SBA 504 program. The 504 program is meant for commercial real estate and equipment.
You should explore the full range of SBA-backed business loans to see what options your business might qualify for.
Bottom line
A $100,000 loan can be a good solution for businesses that want to expand, need access to working capital or want to purchase equipment and inventory. But because it can take so many forms, you should read our guide on the best business loans to determine exactly what type of financing your business needs.
Anna Serio is a lead editor at Finder, specializing in consumer and business financing. A trusted lending expert and former certified commercial loan officer, Anna's written and edited more than 1,000 articles on Finder to help Americans strengthen their financial literacy. Her expertise and analysis on personal, student, business and car loans has been featured in publications like Business Insider, CNBC and Nasdaq, and has appeared on NBC and KADN. Anna holds an MA in Middle Eastern studies from the American University of Beirut and a BA in Creative Writing from Macaulay Honors College at Hunter College, CUNY.
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