Business lenders offer $100,000 business loans of all types, including term loans, lines of credit, accounts receivable financing and more. However, your business typically needs to meet basic credit, annual revenue and time-in-business requirements to qualify for a loan.
Most lenders, including banks, credit unions, alternative online lenders and loan marketplaces, offer $100,000 business loans. Established businesses can often find the most competitive rates at large national banks. Newer firms may have better luck with an online lender, a business loan marketplace or an SBA loan specialist offering SBA 7(a), Express and 504 loans.
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The Finder Score crunches 12+ types of business loans across 35+ lenders. It takes into account the product's interest rate, fees and features, as well as the type of loan eg investor, variable, fixed rate - this gives you a simple score out of 10.
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The application process depends on the type of loan you get, but these general steps should help you with most lenders.
While a $100K business loan is relatively small in the business loan space, it’s still substantial enough that you’ll need to meet certain revenue requirements and other criteria, including:
If you’re looking for a $100,000 loan to start a business, you might find it challenging — most lenders require at least six months to one year in business and proof of revenue before they’ll give you a loan. However, you may be able to take out a personal loan and use it for business expenses. You can also explore the best loans for startups to better understand your options.
The cost of a $100K business loan ultimately depends on your APR and loan term. Standard business loans and lines of credit may have APRs ranging from around 7% to 100%. Short-term financing options like MCAs, invoice factoring and invoice financing all have higher rates, which make them a more expensive — if quicker — choice.
The repayment period also impacts the final cost. In general, traditional long-term loans have lower rates and smaller payments, but you could end up paying more interest overall. Shorter terms, on the other hand, tend to come with higher rates and larger monthly payments, but you could potentially save on interest, even with a higher rate.
For example, a $100,000 loan with a 20% APR and a three-year term has monthly repayments of $3,716.36, so you’d pay a total of $33,788.90 in interest and fees over the life of the loan. By comparison, the same loan at 15% over seven years has payments of $1,765.27 a month — resulting in total charges of $48,282.96.
Use our business loan calculator to compare monthly loan payments based on different rates and terms.
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Here are some of the most common types of business loans that finance up to $100,000 or more.
Term loans are the most common type of business loan. You’re given a lump sum, usually at a fixed interest rate and pay it back in equal monthly installments. Loan amounts can reach into the millions, and you have the option of a short-term loan — typically up to two or three years — or a long-term loan, which could stretch as long as 10 to 25 years. Interest rates for these loans are typically some of the lowest you can find across loan types, but you’ll need a good credit score to qualify for the best APRs.
A business line of credit may be a good option if you’re looking for the flexibility of a credit card and access to cash. LOCs can be easier to qualify for than term loans, and it’s a renewable source of financing. Plus, you only have to pay interest on the funds you use, so it may be a good choice if you need an emergency fund or have an ongoing project. But loan amounts may not be as high as other options, and terms are typically short at 24 months or less.
SBA loans can range from around $13,000 to $5.5 million, and there are a number of options to consider. They’re backed by the federal government’s Small Business Administration (SBA) — making them less risky for lenders — but provided by banks, credit unions and online lenders. SBA loans typically have strict requirements, and the loan process can be lengthy, but rates are usually very competitive if you qualify.
Equipment loans are a type of secured financing where the asset you purchase acts as collateral for the loan, with terms similar to a car loan. And because equipment loans are secured, you can generally get a better rate than with an unsecured loan, although you risk losing the asset if you can’t make the payments. Equipment lenders may finance up to 100% of the purchase, but in some cases, you may need to come up with a down payment.
A merchant cash advance — also known as a business cash advance or revenue advance — allows you to borrow a lump sum of money based on a percentage of your future sales or revenue. It’s typically a fast form of funding and has more lenient requirements to qualify for than other types of business financing. But rates are usually expensive, and you may have to make weekly or even daily repayments. It’s also not a good option for businesses with inconsistent revenue or those that don’t have a lot of credit card sales.
If your company invoices other businesses or government agencies, invoice factoring is a way to leverage your unpaid invoices in exchange for cash. How it works is you sell your outstanding invoices to a factoring company for a percentage of their worth. Then, as your customers settle their invoices, the factoring company sends you the difference minus its fees. This type of financing is typically fast, but it’s pricey and not suitable for all businesses.
Similar to invoice factoring, invoice financing allows you to use your outstanding invoices as a way to access cash now, but you don’t sell your invoices. Instead, you take out an advance based on a percentage of your unpaid invoices and repay it as your customers pay you. This method allows you to maintain control of your invoices, but it’s also expensive and requires weekly or daily repayments, which may be tough to manage.
Using a personal loan for business expenses is common and might be a sensible choice — especially if you’re just starting out. While most personal loans are capped at $50,000, a few lenders, like SoFi and LightStream, offer loans up to $100,000. But you’ll likely need a good credit score to qualify, and you may not have a lot of options to choose from.
Business loans are either secured or unsecured. A secured loan is backed by collateral from your business — like real estate, equipment or other assets. An unsecured loan is extended based on your creditworthiness and other factors, but it isn’t backed by collateral. However, you’ll typically pay higher rates for unsecured loans, and you’ll likely be required to provide a personal guarantee.
If your credit isn’t great, one option is to explore lenders that specialize in bad credit business loans. These lenders typically have more lenient requirements to qualify, although they make up for the added risk with higher rates and fees.
You can also explore financing options that aren’t as concerned with your personal credit — like merchant cash advances or invoice factoring or financing — but you’ll need the required sales or invoices to back it up.
A $100,000 loan can be a good solution for businesses that want to expand, need access to working capital or want to purchase equipment or inventory. But be sure to take your time and do your research to consider the best business loans and determine exactly what type of financing makes the most sense for your business.
How difficult it is depends largely on your credit score and revenues. If both of those elements are strong, getting a $100K business loan should be relatively straightforward. But if you don’t meet lender requirements in those areas, you may need to seek alternative forms of financing, such as invoice factoring or financing or a merchant cash advance.
Credit score requirements vary widely by lender. For instance, OnDeck requires a credit score of at least 625, while Fora Financial works with scores as low as 500.
Generally, the higher your credit score, the more competitive your options. It can be more difficult to find financing of $100,000 if your score is below 670 — typically the minimum to qualify as good credit. But some lenders consider lower scores, or you can look into business loans that don’t require a credit check.
Yes, it’s possible. Some lenders work with borrowers that have scores as low as 500. That’s because lenders consider other factors like your cash flow and revenue to determine your ability to repay the loan. But if you qualify for a loan with bad credit, you’ll likely end up with shorter terms and less competitive rates than borrowers with good credit.
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