It’s common to see large loans get low interest rates — you may see rates as low as 3% to 7% if you have stellar credit or rates between 6% to 10%, depending on the type of financing.
However, low rates tend to come from big banks. Most Small Business Administration (SBA) loan programs have limits of up to $5 million and may have higher rates, often capped at 9.5% to 11%.
Before you sign the dotted line, compare paths in getting a $10 million business loan.
Your best bet to get a $10 million business loan is with a large bank or lender that specializes in high-dollar financing for businesses. And it’s also one of the better ways to get a low interest rate on these large loans.
You may qualify for $10 million through the SBA 504 program — but this financing is limited to commercial real estate, not working capital.
If you don’t have the revenue to support such a large loan and a previous banking relationship with the lender you’re interested in, it will be difficult to find a $10 million business loan. There are nonbank lenders and marketplaces such as Lendio, Nav and Biz2Credit that offer business loans in the millions, but amounts are often capped at $5,000,000 to $6,000,000.
If you’re a small business, you may not qualify for a $10 million loan. Strong revenue is required due to the large payments on these loans. Compare other small business loan options.
Several financing options are available for $10 million loans — though not all are right for every business.
A business term loan comes in one lump sum that is repaid over a period of 10 to 25 years — plus interest and fees. Term loans of this size might be available through large national or international banks. Some online lenders specialize in high-dollar financing, but it’s rare.
You generally need a record of repaid loans, high monthly revenue and collateral to qualify for a $10 million term loan. It also helps to have an established banking relationship with the lender.
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Business lines of credit are best for ongoing projects and frequent expenses. They have lower rates than a business credit card, and the $10 million credit limit allows for a wide range of spending. Like term loans, lines of credit are typically available from banks and some online lenders. Expect to meet similar eligibility requirements as well.
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The SBA 504 program is meant to buy property, equipment or real estate. Generally, you need to put up a 10% to 20% down payment and meet the SBA’s loan requirements to qualify for this loan. And while most programs are capped at $5 million, you might be able to find an SBA 504 loan of up to $10 million, depending on the lender you work with.
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Invoice factoring uses your business’s unpaid invoices from other companies or government agencies as collateral for a loan. Your business sells its unpaid invoices at a discount to a third party. In exchange, your business receives 80% to 95% of the unpaid amount up front and the remaining amount after your clients have paid.
Invoice factoring is typically fast, and your business may be able to qualify without high revenue or excellent credit. However, it’s also expensive compared to more traditional options. Compare the top factoring companies here.
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Retailers can get an advance on their future sales through this high-cost alternative to traditional business loans. Generally, merchant cash advances (MCAs) have less stringent eligibility requirements and a much faster turnaround — think a few days rather than weeks.
Instead of interest, MCAs come with a flat fee that your business repays with a percentage of its sales. However, these can be significantly more expensive than traditional financing — and very few options are available for businesses that need to borrow $10 million.
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It depends on your business and the type of financing you choose. Loans of this size usually come with low rates and long terms — APRs between 6% and 10% and terms ranging from 10 to 25 years.
A $10 million business loan with a 25-year term and a 6% APR has a monthly repayment of $64,430.14. Over the course of the loan term, that loan would cost around $9,329,042.04 in interest.
Even a low APR on these large loans creates a high monthly payment, which is why strong revenue is required.
Simply enter in an amount, loan term and interest rate to see how much a $10 million business loan may cost you.
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Eligibility requirements vary by lender and the type of financing you’re interested in. But typically, you and your business will need to meet these requirements:
It’s not likely. Most lenders that offer funding of this size require your business to be around for at least a few years and have a proven track record of high revenue. To compare lending options for new businesses, see our list of the best startup business loans.
It might be possible in some cases, but most business loans of this size require some kind of collateral — even if it doesn’t fully back the loan. A merchant cash advance technically doesn’t require any physical collateral, though you’re pledging a percentage of your future sales.
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BHG Money is a nonbank lender that offers investment, debt consolidation, startup and healthcare-related loans to licensed professionals. Borrow up to $250K with minimal requirements.
Current merchants may be able to take advantage of a loan with extremely flexible repayments
Get funding of up to $500,000 with the benefit of early repayment discounts for qualifying borrowers.