- Required time in business: 1+ years
- Required annual revenue: $50k+
- Min credit score: 525+
How to get a $150,000 business loan
Compare lenders to find favorable rates and terms for a $150K business loan.
- Required time in business: 6 months
- Required monthly revenue: $20k
- Min credit score: 550
- Required time in business: 6+ months
- Required annual revenue: $60,000+
- Min credit score: 550+
If you’re considering a $150,000 business loan, you have many options, such as a line of credit, term loan, cash injection and many others. Typically, you’ll need to be in business for at least six months to a year and make six figures in your business, though criteria can change from lender to lender.
Compare providers to make sure you’re getting the most competitive rates and terms before you apply.
Where to get a $150,000 business loan
You can secure a $150,000 business loan from traditional banks, online lenders, private lenders, and the Small Business Administration (SBA). Business lenders offer varying loan amounts with a wide range of requirements.
Established businesses might find more competitive rates at a large national bank. However, newer businesses might have better luck with an online lender or marketplace or an SBA loan specialist offering SBA 7(a), Express and 504 loans.
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What type of $150,000 business loans are available
Business loans that finance up to $150,000 for your business can cover the following.
|Type of financing
|Short-term business loan
|An unsecured lump sum loan with repayment terms of up to 18 months
|To cover unexpected costs or to survive a downturn
|Business term loan
|An unsecured lump sum loan with repayment terms of up to 10 years
|To provide working capital for more established businesses
|Business line of credit
|A revolving line of credit for ongoing expenses
|To tap into funds as needed and pay off as you go
|Merchant cash advance
|A quick turnaround loan for newer businesses or those with bad credit
|To borrow against your future credit card sales
|A low interest small business loan partially backed by the government
|To provide working capital to grow your business
|A collateralized term loan to fund equipment
|To pay for any kind of equipment for your business
|Inventory factoring/Inventory financing
|A loan secured by businesses’ inventory
|To free up cash tied to inventory.
|Commercial real estate loans
|Loans for purchasing property for business use
|Businesses looking to buy, refinance or develop commercial property.
|Specifically for purchasing a franchise
|Business owners looking to buy a new franchise.
Secured vs. unsecured business loans for $150,000
Business loans are categorized into two main types: secured or unsecured. Secured loans require collateral, making them easier to qualify for if you have a lower credit score. A borrower seeking a secured loan must also have some type of asset that can back the loan, which goes through an appraisal process. Unsecured loans don’t require collateral but may require a personal guarantee and typically come with higher costs and APRs.
How to qualify for a $150,000 business loan
While a $150,000 business loan is below the average borrowing amount of $660,000, it may still be difficult to qualify if you just started your business.
To qualify for a loan of this size, you typically need:
- Good personal credit. A decent personal and business credit score of around 625 to 680 or higher.
- Minimum monthly revenue. As a rule of thumb, lenders will loan you 1x to 1.5x of your monthly revenue.
- Minimum time in business. Some lenders are okay with three months in business, while others require at least a year or more.
- A business plan or loan proposal. A business plan shows your lender how you’ll be bringing in revenue.
- A personal guarantee. If your loan is unsecured, your lender may ask for a personal guarantee.
How much does a $150,000 business loan cost?
You can expect competitive rates for a $150,000 business loan if you have strong credit and business financials. However, as an example, a traditional bank term loan might start as low as 8% APR, while SBA loan rates are capped at the prime rate plus 2.25% to 2.75% for most programs — plus additional fees. In 2024, the SBA states that its annual service fee for a loan of $1 million or less will be 0%.
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 $150,000 loan work?
Most $150,000 loans are term loans with fixed or monthly repayments, while some short-term business loans may require more frequent repayments, such as biweekly, weekly or daily. It’s important to review the repayment terms before finalizing the loan agreement to ensure you can meet payments. The specific repayment structure depends on the loan type and lender of your choice.
If you apply for a merchant cash advance, you’ll repay your loan with a percentage of your business’s daily sales. If you get an advance on your unpaid invoice with invoice factoring, you won’t repay the factoring company — you just won’t get your invoice’s total value.
How to get a $150,000 business loan?
The application process for a $150,000 loan varies by lender but generally involves the following steps:
- Determine the type of loan you need. Whether it’s a term loan for one-time costs or a line of credit for ongoing expenses.
- Compare lenders offering $150,000 loans. Consider factors such as APR, terms and funding speed.
- Check your eligibility. This may involve filling out an online form for online lenders or contacting a bank directly.
- Gather the required documents. This includes personal and business tax returns, profit and loss statements, and bank statements.
- Fill out the application. This can take from a few minutes to over an hour, depending on the lender and loan type.
- Submit any additional information. Then review and sign the loan contract once approved.
- 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 for $150,000 loans is typically shorter than larger loans. For SBA loans, funding can take weeks, while online lenders may be able to approve your loan in one business day or less. For the fastest application times and turnaround, consider a no-doc lender.
Can I get a $150,000 SBA loan?
You can opt for a $150,000 SBA loan. These loans offer low rates and higher amounts to business owners who struggle to qualify with other private lenders. But the process is very competitive, and many applicants don’t walk away with an approved loan. Usually, the higher the loan amounts, the more annual revenue you need.
Can I get a $150,000 loan with bad credit?
You can borrow $150,000 in business financing, even with bad credit. You’ll most likely be approved for a merchant cash advance or invoice financing — but you’ll need the revenue or unpaid invoices to support this loan amount. You may also have a better chance at loans backed by collateral, like equipment loans and leases. Be prepared to pay more in fees and interest if you get a bad credit business loan.
Can I get a loan for $150,000 to start a business?
Yes, but it is not that common for startups or new businesses. Lenders such as banks, SBA lenders and online lenders may be open to working with startups seeking this amount. While some lenders may provide rapid funding, traditional banks may have a more rigorous application process and longer turnaround times. You’ll need the right documentation, such as personal and business financial statements, to support your application.
Not sure where to start? Visit our comprehensive guide to startup loans to explore your options.
To receive a $150,000 business loan, you may need several months in business as well as a good credit profile — though it’s not always required. To compare lenders and get prequalified, see our guide to the best small business loans to see the amounts and rates you may qualify for.
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