Compare providers for $300,000 business loans
To get started, select the range for your annual revenue, time in business and credit score to see personalized results.What types of business loans for $300,000 are available?
Business loans for $300,000 cover a wide range of financing scenarios. Here’s a list of the most common types.
Type of financing | Description | Use |
---|---|---|
Short term 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 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 |
Secured vs. 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 based on your creditworthiness and doesn’t require collateral. But with an unsecured loan, you’ll likely need to provide a personal guarantee.
Can I get an unsecured $300,000 business loan?
It’s possible to get an unsecured $300,000 business loan, especially if you apply with an online lender. However, most lenders prefer to collateralize $300,000 loans because they stand to take a sizable loss if your business defaults.
And even then, most unsecured loans require a personal guarantee from all business owners with a 20% stake in the company.
Where can I get a $300,000 business loan?
You can get a $300,000 business loan from most banks, online lenders and loans backed by the Small Business Administration (SBA).
Community and regional banks might be a particularly good choice for small businesses. While large banks like Chase often offer loans of this size, it can be difficult for smaller businesses to qualify for financing — especially if you have fewer than 10 employees.
Some online lenders like Fora Financial and Rapid Finance offer $300,000 loans — even to borrowers with bad credit. But online lenders typically only finance smaller projects, and some don’t offer financing over $250,000.
How to apply for a $300,000 business loan
You can apply for a $300,000 business loan by following these general steps. But beware — the application process is usually more intensive for a loan of this size than for financing under $100,000.
- Decide on the type of loan your business needs. Long-term loans and equipment financing are best for investing in long-term growth projects. Short-term loans, lines of credit, inventory financing and business cash advances are best for short-term needs and ongoing projects.
- Compare business loan providers and check your eligibility. This could involve setting up an appointment with a loan officer at a bank. Or use a connection service like Lendio that partners with both bank and online lenders to quickly compare offers.
- Get prequalified. After you’ve made a list of lenders you’re interested in, get a personalized quote from your top choices by doing a prequalification. Prequalification allows you to compare rates and terms before applying and doing a hard credit pull.
- Gather all required documents. For a $300,000 loan, this will require a government-issued ID, EIN, bank statements from the past few months for the business and owners, tax returns, financial statements and financial projections.
- Apply for the loan. If your lender has an online application, this sometimes only takes a few minutes. But SBA loans typically require multiple forms that can get complicated. It may be worth signing up for a packaging service from a company like SmartBiz.
- Appraise collateral. If required, hire a professional to appraise your collateral. While standard for real estate loans, you might also need to take this step for an equipment loan or if you are financing inventory.
- Sign your loan offer. If you’re approved for a loan, read your loan offer carefully before signing, noting the interest rate, fees, repayment terms and due dates.
How much does a $300,000 loan cost?
How much a $300,000 loan costs depends on the rates, fees and loan terms your lender offers.
Suppose your business took out a $300,000 loan at an 8% APR and a seven-year term. The loan would cost your business around $4,676 each month and about $92,772 in interest after you’ve fully paid off the loan.
See how much a $300,000 business loan costs at other rates and terms by using our calculator and compare costs to typical business loan rates.
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Can I get a $300,000 SBA loan?
You can get a $300,000 loan from most SBA lenders. In fact, SBA loans can be a great option for established small businesses that have been around for about three years but can’t qualify for a bank loan.
It’s not a bad credit option, however. You need a credit score of at least 620 to qualify for government-backed financing. And your business typically needs to have enough revenue to support payments — usually around just under $1 million to $3 million.
But the SBA sometimes has revenue caps, which vary depending on your industry. For example, many agriculture businesses must earn less than $1 million in annual revenue to qualify.
Which SBA programs offer $300,000 loans?
Most SBA loan programs offer $300,000 loans. Here are some options you might want to consider:
- SBA 7(a) loans are general-purpose term loans and the most popular SBA loan program. But for a $300,000 loan, avoid the largest 7(a) lenders like Live Oak Bank, which typically specialize in financing higher dollar projects.
- SBA Express loans can be used in the same way as a 7(a) loan — but with a faster turnaround. However, a lower SBA guarantee means your business likely needs to back the loan with collateral valued at up to $150,000.
- SBA CAPLines offer $250,000 lines of credit for expenses like working capital, filling a government contract, completing a construction project or preparing for a seasonal spike in sales.
- SBA CDC/504 loans are specialized financing for real estate or equipment purchases and are available at $300,000.
Bottom line
Banks and SBA lenders are often your best bet for $300,000 business loans. Before you land on a lender, compare the best business loans. Determine which ones have the type of financing you need and — if it’s available — prequalify before you submit your full application.
Other business loan amounts:
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