Is your business growing rapidly? Get financing to meet demand

Business borrowing guide stage 3: Loans for high-growth businesses

Is your business growing more quickly than you can keep up with? This is your guide to the specific funding your business might need.

Being in a stage of high growth is the aim of every business owner, but it can also make business operations more difficult. High-growth businesses still encounter cash flow issues and have new needs for expansion and hiring. If you don’t want to put a strain on unpredictable cash flow, there are financing options you can consider.

OnDeck Small Business Loans

OnDeck Small Business Loans

Among the largest online business lenders offering term loans and lines of credit at competitive fixed rates.

  • Minimum Amount: $5,000
  • Maximum Amount: $500,000
  • Loan Term: 3 to 36 months
  • Simple online application process with fast decisions
  • Dedicated loan specialists and loyalty benefits
  • Must have been in business for at least one year with annual revenue of $100,000+
  • Must have a personal credit score of 500+

    What is a “high growth” business?

    A high-growth business is a business of any size that is in a period of rapid growth. This type of business usually has a few employees and is past its initial stages, which are usually marked with high costs and uncertain profits. High-growth businesses can also be larger companies that are experiencing rapid growth after restructuring or launching a new product or service.

    What funding needs will a business experiencing high growth have?

    Businesses in this stage of growth have very specific funding needs:

    • Large loan amounts. While a high-growth business might need $50,000 today, they might need $500,000 tomorrow. Opportunities for large orders and expansions occur quickly, and these businesses rely on being able to keep up with demand.
    • Tailored repayments. What works for a startup business may not work for a business that is growing quickly. Tailored repayments help keep cash flow fluctuations manageable and put less of a strain on businesses.

    Types of finance to consider as a high-growth business

    Lenders prefer businesses that can demonstrate they’re able to repay the loan, so if your business is in a high-growth phase you are in a good position to borrow. There are a range of financing options available so it’s important to review your options and find the one that best fits your needs.

    Financing typeEstimated amount able to borrowHow you repayAdvantages
    Line of credit$10,000–$1,000,000Make the minimum payment based on the amount borrowed or pay in full as you borrow against your line of credit
    • Allows for a flexible borrowing amount
    • Generous repayment terms (usually up to 25 years)
    Term loan$5,000–$5,000,000Regular repayments based on a fixed or variable interest rate
    • Automatic repayments — monthly, weekly or daily
    Invoice financing or factoringUp to 80% of the invoice amountPay a monthly fee on the advance until you pay back the loan
    • Reduce waiting time for invoices to be paid
    • Invoice financing can be confidential
    Equipment loansCost of the equipmentRegular repayments based on a fixed or variable interest rate
    • Lease and loan options are available
    • Gets you quick access to equipment without using cash reserves
    Credit cards$500–$250,000Pay the minimum balance or the entire balance if you’re able to
    • High credit limits
    • Only use as much as you need
    • Earn reward points and other perks

    Useful guides for high-growth businesses

    Compare top online business lenders who could finance your high-growth business

    Rates last updated April 25th, 2018
    Name Product Product Description Min Loan Amount Maximum Loan Amount Requirements
    LoanBuilder, A PayPal Service Business Loans
    Customizable loans for business owners in a hurry with no hidden fees.
    $5,000
    $500,000
    Annual business revenue of at least $100,000, at least 1 year in business, personal credit score of 600+.
    LendingTree Business Loans
    Compare multiple business financing options in one place including: small business loans, lines of credit, SBA loans, equipment financing and more.
    Varies by lender and type of financing
    Varies by lender and type of financing
    Varies by lender, but you many require good personal credit, a minimum business age and minimum annual revenue.
    National Business Capital Business Loans
    Get a large business loan to cover your financing needs, no matter what the purpose is. Startups welcome with 680+ credit score.
    $10,000
    $5,000,000
    Your company must have been in business for at least 6 months and have an annual revenue of at least $180,000.
    Excel Capital Management Small Business Loans
    Get personalized financing options that suit your unique business needs in just a few simple steps.
    Varies by loan type
    Varies by loan type
    Your business must operate in the US, be at least 1 year old and have monthly revenue of $15,000+.
    OnDeck Small Business Loans
    A leading online business lender offering flexible financing at competitive fixed rates.
    $5,000
    $500,000
    Must have been in business for at least one year with annual revenue of $100K+. Must have a personal credit score of 500+.
    Kabbage Small Business Line of Credit
    A simple, convenient online application could securely get the funds you need to grow your business.
    $2,000
    $250,000
    Must have been in business for at least 1 year. Revenue minimum is $50,000 annually or $4,200 per month over the last 3 months.
    Fora Financial Business Loans
    No minimum credit score requirement and early repayment discounts for qualifying borrowers.
    $5,000
    $500,000
    Business age 6+ months. Monthly revenue $12,000+. No open bankruptcies.
    LendingClub Business Loans
    With loan terms that vary from 1 to 5 years, enjoy fixed monthly payments and no prepayment penalties through this award-winning lender.
    $5,000
    $300,000
    2+ years in business; $50,000+ in yearly sales; No bankruptcies or tax liens; At least 20% ownership of your business; Fair or better personal credit
    SmartBiz SBA Loans
    Get funding for your small business with a government-backed loan and extended repayment terms.
    $30,000
    $5,000,000
    Personal credit score of 650+; US citizen or permanent resident; Business must be 2+ years old; Annual revenue of $50,000+; No outstanding tax liens; No bankruptcies or foreclosures in past 3 years.

    Compare up to 4 providers

    How you can compare your business loan options

    • When you will receive the funds. If your business is experiencing high growth, chances are you need the funds quickly. Some business lenders can provide funds within 24 hours of approval, but many take longer. Find out when you can expect to receive it.
    • How much you can apply for. Loan amounts differ between lenders. Some might offer a maximum of $500,000 while others will offer more. Ensure the lenders you are comparing are offering the amount of money you need.
    • How flexible is the loan? Can you repay the funds early without penalty? When will your business be required to make repayments? Make sure the loan is as flexible as you need it to be.
    • Is there a fixed term? This depends on the type of loan you’re looking for. Fixed term loans will mean your ongoing repayments pay back the loan at the end of the term, but a non-fixed term loan, such as a line of credit, will be more flexible and allow you to only take out as much as you need.
    • How is interest charged? Will interest be calculated on the principal or on how much you have left to repay? Will the rate be fixed or variable? This has a huge impact on the cost of your repayments so make sure you check this.

    Costs to be aware of with business loans

    Each lender will set different interest rates and fees for your loan. Keep an eye out for the following:

    • Interest rate. If the loan type you choose charges an interest rate, you need to check whether it is fixed or variable. It may also be a factor rate, which is expressed as a decimal figure and doesn’t compound.
    • Upfront fees. You may be charged an establishment fee or application fee. These will be added onto your loan amount and you don’t need to pay these unless you are approved and sign the loan contract.
    • Ongoing fees. Monthly and annual fees are common with business loans, so remember to incorporate these into the overall cost of your loan to see how much your repayments could be.
    • Other fees. You may be charged for making additional repayments or repaying your loan early, there could be a documentation fee or a direct deposit fee.

    Four important questions to ask before applying for a loan

    • How will the repayments affect my business’ cash flow?
      By answering this question you can find out how manageable the loan payments will be and if you should adjust the amount you are borrowing or the term.
    • Is my ability to repay the loan based on my current level of growth?
      It’s easy for a business to stagnate, so if you’re relying on your increasing cash flow to repay the loan, you need to consider how reliable those projections are.
    • How is my credit history?
      Have you checked your business credit score and personal credit report? It will give you an idea of your financial stability as well as the likelihood of your business being approved.
    • Do you have property or a vehicle to use as security?
      Many lenders give more competitive rates or terms for secured loans, and you may increase your chances of being approved if you offer an asset.
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