Compare $500,000 business loans

While a $500,000 business loan in Canada isn’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 to be eligible.

Compare $500k business loans

1 - 4 of 4

Sort by:Please select

Finder Score (low-high)Finder Score (high-low)Broker Compliance (low-high)Broker Compliance (high-low)

Product	Finder Score	APR	Loan Amount	Loan Term	Broker Compliance
Promoted Advance Funds Network Business Loan	Finder score 8.1 Great	Starting at 9.00%	$5,000 - $500,000	4 - 24 months		To be eligible, you must have been in business for at least 6 months, have a minimum annual revenue of $240,000 and a minimum credit score of 500.	Go to siteMore info Compare	loading Fetching your data...
Promoted Journey Capital Business Loan	Finder score 8.6 Great	16% – 25%	$10,000 - $500,000	4 - 24 months		To be eligible, you must have been in business for at least 6 months with a minimum gross revenue of $100,000 in annual revenue.	Go to siteMore info Compare	loading Fetching your data...
Promoted Loans Canada Business Loan	Finder score 8.1 Great	6.99% - 35.00%	$500 - $500,000	3 - 60 months	Loans Canada is a loan search platform. Applicants will be matched with lenders.	To be eligible, you must have been in business for at least 9 months, have a Canadian business bank account and a minimum of $120,000 in annual revenue.	Go to siteMore info Compare	loading Fetching your data...
Merchant Growth Business Loan	Finder score 7.9 Great	12.99% – 39.99%	$5,000 – $800,000	6 – 24 months		To be eligible, you must have been in business for at least 6 months and have a minimum of $120,000 in annual revenue.	Go to siteMore info Compare	loading Fetching your data...

loading

Finder Score for business loans

To make comparing even easier, we came up with the Finder Score. Interest rates, fees and features across 10+ business loans are all weighted and scaled to produce a score out of 10. The higher the score the better the loan—simple.

Read the full methodology

How to get a $500k business loan in 5 steps

Major banks offer loans of up to $500,000 for qualifying businesses, but you can also turn to private business loan providers to get this type of financing on competitive terms. Although each lender has its own process, these steps can serve as a general guide to finding the right loan option for your business:

1. Compare lenders. Your first step should be to compare business loan lenders. Each lender has its own requirements that can make the difference between approval and rejection.
2. Prepare financial documents. Lenders want to see your business plan, annual revenue projections, bank statements, tax documents and other information that demonstrates your business’s ability to repay a loan.
3. Speak with a financial advisor. Loop a financial advisor into your plan for a $500,000 business loan to ensure your business can afford it, and develop a plan to repay it.
4. Apply for preapproval. This allows you to see your loan’s potential terms before your personal or business credit is officially checked. Not all lenders offer preapproval, but if it’s available, take advantage of it.
5. Review and sign the loan contract. If approved, review your loan contract with your partners and financial advisor to ensure the terms are beneficial for your business.

Where can I get a 500k business loan in Canada?

Many Canadian financial institutions such as banks, credit unions and online lenders offer $500,000 business loans. You may even qualify for a CSBFP loan, which is primarily backed by the government and comes with favourable terms designed to support small- and medium-sized businesses.

Canada Small Business Financing Program (CSBFP)

You can apply for these loans through a chartered bank, credit union or a caisse populaire. They are at least 85% backed by the Government of Canada. You can access up to $1.15 million in funding, but you’ll need to be a for-profit business, use the CSBFP loan funds for specific approved purposes, earn less than $10 million in revenue annually and operate a business in Canada.

Banks and credit unions

Many of Canada’s financial institutions can help you apply for a CSBFP loan, but they also offer in-house business financing, including term loans, lines of credit, equipment financing and working capital loans. You can get a secured or unsecured loan and choose between a fixed and variable rate. Generally, your business needs to have positive revenue for at least a year to qualify.

Online lenders

You might be able to find a $500,000 business loan from an online lender. You’ll likely need an annual revenue of at least $100,000, a good to excellent credit score and your business needs to have been operating for several years.

Crowdfunding

The perk of crowdfunding is that it’s not a loan so you don’t have to pay back any of the money you receive. Instead, you pitch your new product or idea on an online crowdfunding platform where people choose to give you money, often in exchange for rewards or equity in your business. While there are several types of crowdfunding, using equity-based crowdfunding would give you the best chance to raise $500,000 for your business.

How to qualify for a $500,000 business loan

To qualify for a business loan of this size, you and your business must typically meet criteria that include:

• Time in business. Most lenders require that you’ve been in business for at least 6 to 12 months.
• 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 660 or higher to qualify. It’s also common for business lenders to ask for a personal guarantee from the owner.

Requirements for a small business loan

Can I get a $500k business loan with bad credit?

It’s very difficult to get a $500,000 business loan with bad credit. If you have bad credit, you’re much more likely to default on your loan. To minimize this risk, lenders offer low amounts and high interest rates.

Can you get unsecured $500k business loans?

Most $500,000 business loans require some kind of collateral—especially if it’s an equipment loan or for commercial real estate. However, it is possible to get an unsecured business loan of $500,000 from financial institutions and select online lenders.

Typically, you need a higher credit score and stronger business financials to qualify for an unsecured business loan. You also might need to prove more business experience, requiring at least two years of experience for approval.

Calculate how much a $500k business loan will cost

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.

The cost of a $500k business loan

Let’s take a look at an example. Say your business takes out a $500,000 loan with an APR of 8% and a 3-year term. With this loan, your business can expect to pay $15,668.18 monthly for a total of $64,054.58 in interest and fees.

• How to use this business loan calculator

  Follow these steps to figure out how much you’ll pay each month and in total over the life of your loan:

  1. Enter the amount your business wants to borrow under Loan amount.
  2. Enter the amount of time your business needs to pay back the loan under Loan terms.
  3. Write the interest rate under Interest rate if your loan has no fees. Or, enter the APR if the lender charges an origination, closing or annual fee.
  4. Click Calculate.
  5. Review your monthly payment and total interest charge.

What about getting a $500,000 business line of credit?

An alternative to a standard business loan is a business line of credit for $500,000. This may be a better option for people who want ongoing access to financing up to a set maximum credit limit. You only make repayments, with interest, on the money you borrow. A business line of credit can often be a more flexible type of business financing since it’s open ended.

Business line of credit interest rates typically start at around 7%, but it will depend on the lender and your credit history.

Bottom line

When applying for a $500,000 business loan, it’s important to consider more than just meeting the eligibility criteria. A loan of this size represents a significant financial commitment, so ensure that your business can manage the monthly repayments and that the funding will contribute positively to your long-term growth and success.

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.

Frequently asked questions

• How do payments on a $500,000 business loan work?

  It depends on your loan and lender. Most $500,000 loans are term loans, which come with scheduled repayments over the course of up to 15 years. Some business loans come with weekly, bi-weekly, monthly or even daily repayments, though your repayment schedule will likely depend on your financials.

  Alternative types of financing, like merchant cash advances and invoice factoring, work differently. If you apply for a merchant cash advance, you'll repay it with a percentage of your business's daily sales. With invoice factoring, you won't pay back your factoring company at all — you just won't get your invoice's total value.

• Can I get a $500,000 loan to start a business?

  It's difficult for a startup or new business to qualify for high-dollar loan amounts. For other options, start with our guide to startup grants.

• Can I get a business loan without collateral?

  Yes. Unsecured business loans don't require collateral. But secured loans can come with better rates—although you risk losing your collateral if you default on the loan.

  However, you don't necessarily need collateral upfront to qualify for secured business loans. For example, equipment loans and vehicle loans are secured by the equipment or vehicle that your business purchases with the loan.

• What is the maximum amount for a small business loan?

  Business loans in Canada typically range between $5,000 and up to $500,000, although some institutions may offer business financing up to $1,000,000 or more. The amount your business will be able to qualify for will depend on your credit score and how well your business is established, which includes the amount of disposable income available.

To make sure you get accurate and helpful information, this guide has been edited by Leanne Escobal as part of our fact-checking process.

Written by

Emma Balmforth

Producer

Emma Balmforth is a producer at Finder. She is passionate about helping people make financial decisions that will benefit them now and in the future. She has written for a variety of publications including World Nomads, Trek Effect and Uncharted. Emma has a degree in Business and Psychology from the University of Waterloo. She enjoys backpacking, reading and taking long hikes and road trips with her adventurous dog. See full bio

Co-written by

Gabriel Vito

Writer

Gabriel Vito is a freelance personal finance writer for Finder. With over four years of experience, he has crafted helpful guides and articles covering various personal finance topics, including credit cards, investing and banking. Gabriel's work has been featured on Yahoo Finance, NASDAQ, GoBankingRates, and more. He has a Bachelor's Degree in English and is passionate about helping others navigate their financial journey. See full bio