$500,000 business loans
Get the funds you need to expand, support and invest in your small business.
A successful business can outgrow its office space, equipment and even its workforce, and when this happens, you’ll likely need access to more capital. While $500,000 business loans aren’t easy to get approved for, there are some banks and online lenders that offer this kind of money. But you’ll need to meet minimum annual revenue and time in business requirements in order to be eligible.
How to get a $500,000 business loan
To qualify for a business loan of this size, you and your business must typically meet criteria that includes:
- Time in business. Most lenders require that you’ve been in business for at least a year.
- Annual revenue. Your business will likely need to bring in at least $100,000 annually in revenue.
- Personal credit. Lenders tend to rely on personal credit scores rather than business credit scores. You’ll likely need a good credit score of 650 or higher to qualify. It’s also common for business lenders to ask for a personal guarantee from the owner.
Where to get a $500,000 business loan
- Online lenders. You can find a few online lenders that offer business loans up to $500,000 – and sometimes higher. You can compare online lenders in the table above.
- Traditional lenders. You could try getting a small business loan from your bank or credit union, but they might have more stringent eligibility requirements.
- CSBFP loan. The Canada Small Business Financing Program (CSBFP) offers government-backed loans up to $1,000,000 – but you’ll need to meet minimum time in business and revenue requirements, as well as be a for-profit in order to be eligible. You must also use the funds for specified purposes including buying equipment or renovating a building.
Costs of a $500,000 loan
How much you’ll repay on a $500,000 business loan depends on two main factors: your loan’s APR and the loan term.
- The APR is an expression of your loan’s interest rate and fees as a percentage. The lower the APR, the less you’ll pay in interest over the life of the loan.
- The loan term is how long you have to pay back the loan in full. The shorter your loan term, the higher your monthly repayments will be – but a longer loan term means you’ll end up paying more in interest.
Let’s take a look at an example. Say your business takes out a $500,000 loan with an APR of 18% and a two year term. With this loan, your business can expect to pay $24,962.05 monthly for a total of $99,089.22 in interest and fees.
Unsecured business loans for $500,000
Most $500,000 business loans require some kind of collateral — especially if it’s an equipment loan or a commercial real estate loan. However, it’s possible to get an unsecured business loan of $500,000 from some financial institutions or online lenders.
Typically, you’ll need a high personal credit score, an annual revenue over $100,000 and your business will need to be well-established in order to qualify for an unsecured business loan.
When applying for a $500,000 business loan, you’ll need to consider more than whether you meet the eligibility requirements. $500,000 is a lot of money – and you’ll need to be sure that you can afford the monthly repayments and that the loan is going to help your business in the long run.
Want to learn more? Head to our comprehensive guide to business loans, where you can compare lenders and learn more about the world of business financing.
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