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$3 million business loans

To find a small business loan of this amount you might have to turn to big banks or lenders specializing in high-dollar financing.

A $3 million business loan can be difficult to find – and even more difficult to qualify for. To borrow such a high amount of money, you’ll typically need to turn to a big bank or a lender specializing in high-dollar financing, have strong personal credit and have a high revenue to be able to afford five-digit monthly repayments.

Where can I get a $3 million business loan?

Most online lenders won’t offer loans in such high amounts. To get a $3 million business loan, you’ll likely need to turn to a large bank or a lender that specializes in high-dollar financing for businesses.

The type of financing that you’re looking for can also play a role in the type of lender that you turn to for financing. If you’re looking for a term loan, again a bank or lender specializing in high amounts would likely be your best options. Businesses that rely on invoices from other companies may find a factoring lender useful, while retailers might be able to qualify for funding from a merchant cash advance company.

How can I qualify for a $3 million business loan

Eligibility requirements vary by lender and the type of financing you’re interested in. If you’re interested in a $3 million business loan, you’ll likely need to meet the following criteria:

  • Strong personal credit of 650 or higher.
  • Established business with years of experience.
  • Strong business financials to afford repayments.
  • Consistent cash flow.
  • Annual revenue well into the millions.
  • Collateral to back the loan.
  • Established relationship with the lender.

How much will a $3 million business loan cost?

It depends on your business and the type of financing you choose. Loans of this size typically come with relatively low rates and long terms — think APRs between 4% and 10% and loan terms ranging from 3 to 25 years.

As an example, if you took out a $3 million loan at a 9% APR with a 10-year term, you would have monthly repayments of $38,002.73 and pay a total of $1,560,327.86 in interest over the life of the loan.

Let’s take a look at an example …

Eric owns an online retail business and needs $3 million to expand his operations into a new office space. He decides to go with a standard business term loan, since he has several miscellaneous expenses and enough assets to provide collateral.

He turns to an online lender specializing in high-dollar financing. Here’s how his offer breaks down:

  • Interest rate: 7.75%
  • Term: 20 years

Taking the rate and term into account, loan repayments will be $24,628.46 a month and he’ll pay a total of $2,910,829.66 in interest over the life of the loan.

Business loan calculator

This calculator allows you to input details of 2 loans to compare the full cost of each. Compare interest and fees, and calculate the fixed, ongoing and total cost of repaying the loan.

After you’ve entered the details of your loan options, the calculator shows you the cost of monthly repayments and the total amount you’ll pay back in principal and interest. If you decide to compare 2 loans, you’ll see the lender that costs less over the term you choose.

How do I use the business loan calculator?

To determine how much your business loan will cost you, simply fill out the following fields in the calculator:

  1. Loan term and amount. Select how long you need to repay the loan and enter the amount you intend to borrow.
  2. Bank name. Enter the names of your lenders.
  3. Fixed rate and period. If your loan comes with a special introductory fixed rate, enter the rate and how long the intro period lasts.
  4. Ongoing rate. Enter the ongoing rate you’ll pay for your loan here.
  5. Upfront fees. If your loan has an origination or application fee, add it here.
  6. Fees. If the loan comes with any ongoing fees, you’ll need to add them here and select how often they’re charged.
  7. Prepayment penalty. If you’re charged a prepayment penalty for paying off your loan early, enter the amount here.
  8. Calculate. Click the Calculate button to see which lender costs less and each lender’s fixed, ongoing and total repayments.

If a section in the calculator doesn’t apply to you, leave it blank. You can adjust the loan amount, term length and any other variables to help you get an accurate idea of how much you can borrow and what sorts of terms to look for when applying with different lenders.

Compare business loans to meet part of your financing needs

The lenders below may not offer business financing up to $3 million. However, you may still be able to get part of the funds you need to cover some of your most important upfront costs. Compare lenders offering business loans of up to hundreds of thousands of dollars.

1 - 3 of 3
Name Product APR Range Loan Amount Loan Term Minimum Revenue Minimum Time in Business Loans Offered Broker Compliance
Journey Capital Business Loan
8.00% – 29.00%
$5,000 - $300,000
6 - 18 months
6+ months
Term Loan, Line of Credit, Merchant Cash Advance
To be eligible, you must have been in business for at least 6 months with a minimum annual gross revenue of $100,000.

Journey Capital offers fast and simple financing. Apply in less than 10 minutes with your basic business information and see your loan offers without hurting your credit score. Get approved within 1 business day, and choose your term, amount and payback schedule once approved.
Merchant Growth Business Loan
12.99% - 39.99%
$5,000 - $800,000
6 - 24 months
$10,000 /month
6 months
Unsecured Term, Line of Credit, Merchant Cash Advance
To be eligible, you must have been in business for at least 6 months and have a minimum of $10,000 in monthly sales.

Merchant Growth offers financing tailored to business needs. It specializes in providing capital based on future cash flows, but it also offers fixed solutions. Fill out an application within 5 minutes and get your funds within 24 hours.
Loans Canada Business Loan
6.60% - 29.00%
$4,000 - $500,000
3 - 60 months
over $10,000/month
100 days
Unsecured Term
Loans Canada is a loan search platform with access to multiple lenders. Applicants will be matched with a suitable lender based on credit history and borrowing requirements.
To be eligible, you must have been in business for at least 100 days, have a Canadian business bank account and show a minimum of $10,000 in monthly deposits ($120,000/year).

Loans Canada connects Canadian small business owners to lenders offering financing up to $500,000. Complete one simple online application and get matched with your loan options.

4 types of $3 million business loans

You have several types of financing to choose from when looking to borrow $3 million — though not all are right for every business.

1. Business term loan

A business term loan comes in one lump sum, which you repay over a period of 5 to 25 years, plus interest and fees. Term loans of $3,000,000 might be available through large banks or online lenders that specialize in high-dollar financing.

You generally need to have near-perfect credit and high monthly revenue to qualify for a $3 million term loan. It also helps to have a good relationship with the lender you’re applying with. Collateral is also usually required for a loan of this size.

Consider using a term loan if …
  • You need to fund a one-time expense.
  • You and your business partners have excellent personal credit.
  • You have a good relationship with your lender.
Consider other options if …
  • It’s hard to predict your business’s costs.
  • You have weak or poor credit.
  • Your business lacks sufficient collateral.

2. Business line of credit

A line of credit makes sense when you have an ongoing project you need to fund, like construction or expansion. Rather than borrowing $3 million all at once, you get access to a credit limit up to $3 million – which you can draw from as needed. You only have to pay interest on the amount you actually borrow.

The same types of lenders that offer term loans also usually offer lines of credit of this amount. Similar eligibility requirements also apply.

Consider using a line of credit if …
  • You have costs that are unpredictable.
  • You and your business partners have strong personal credit.
  • You have enough collateral to back a $3-million credit line.
Consider other options if…
  • You don’t have enough collateral.
  • You only need funds for a one-time project.
  • You or another business partner have poor credit.

3. Merchant cash advance

Retailers can get an advance on their future sales through this high-cost alternative to traditional business loans. Generally, merchant cash advances have less stringent eligibility requirements and a much faster turnaround — think a few days, rather than weeks.

Instead of interest, these come with a flat fee that you repay with a percentage of your company’s sales. However, these can be significantly more expensive than traditional financing.

Consider using a merchant cash advance if …
  • You own a retail business.
  • You’ve struggled to get financing elsewhere.
  • You don’t have the time to spend on a lengthy application.
Consider other options if …
  • You’re not in the retail industry.
  • You can qualify for a term loan or line of credit.
  • You have the time to spend on a more detailed application.

4. Invoice factoring

Similar to a merchant cash advance, this option offers an advance on your business’s unpaid invoices from other companies or government agencies. It involves selling your unpaid invoices at a discount to a third party. You typically receive around 80% to 95% of the unpaid amount upfront and get the remaining amount after your clients have paid.

Invoice factoring is typically fast, and you can qualify without revenue or excellent credit. However, it’s also expensive compared to other options.

Consider invoice factoring if …
  • Your business has at least $3.5 million in unpaid invoices.
  • You need money quickly.
  • You’ve struggled to qualify for other types of financing.
Consider other options if …
  • Your business has less than $3.5 million in unpaid invoices.
  • You have time to spend on lengthier applications.
  • Your business can qualify for a term loan or line of credit.

Compare business bank accounts

1 - 5 of 5
Name Product Monthly Account Fee Multi Currency Accounts Currency Conversion Fee Corporate Credit Card Expense Management Accounting Integration Account Management Offer
RBC Digital Choice Business Account
CAD only
Quick books, Sage, Xero
In Branch, Online or App
Get unlimited electronic debit and credit transactions, unlimited electronic cheque deposits, unlimited Moneris deposits and 10 free outgoing Interac e-Transfer transactions per month.
Save time and money when you bank digitally. Easily send money to suppliers, vendors or employees.
Loop Global Business Banking Account
0.1% - 0.5%
Quick books, Xero
Eliminate FX fees with a Loop credit card. Spend in CAD, USD, GBP and EUR and earn points to use toward travel and experiences. Get up to a $1M credit limit.
Get global banking details, multi-currency corporate credit cards, international payments and more.
Wise Business
Quick books, Xero + more
Online or App
No hidden charges, high rates or monthly fees. Get the mid-market exchange rate.
Pay employees, get paid and manage your cash flow in over 70 countries.
RBC Flex Choice Business Account
RBC Flex Choice Business Account
Quick books, Sage, Xero
In Branch, Online or App
No minimum or maximum transaction limits. Only pay for the transactions you make plus a low monthly account fee.
Bank both digitally and in-branch and only pay for what you use.
Vault Business Banking Account
Quick books, Xero
Earn 1% unlimited cashback on your Vault multi-currency corporate credit card. No currency limitations.
Set up accounts in CAD, USD, GBP and EUR, enjoy $0 local transfers (EFT, ACH, etc.), and seamlessly integrate your accounting systems.

Bottom line

Your choices are limited if you need a $3 million business loan to help your enterprise succeed. Most online lenders are off the table, as are many small banks and credit unions – but you may be able to secure such a large amount of financing from a big bank or a lender specializing in large loans for small businesses. If you have strong financials, established operations and an excellent credit score, you stand a better chance of being approved for a loan of this size.

Want to learn more? Head to our guide to business loans.

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