If you’re considering a $150,000 business loan, you’ll find there are many options available, such as a line of credit, term loan, equipment loans and others. Typically, you’ll need to be in business for at least six months to a year or more and make six figures in revenue, though criteria can change from lender to lender.
Take time to compare providers to make sure you’re getting the most competitive rates and terms before you apply.
You can secure a $150,000 business loan from traditional banks, online lenders, private lenders and the Small Business Administration (SBA). Each lender and loan type has varying requirements, interest rates and approval speeds, so it’s important to choose the one that best fits your business’s financial profile.
Established businesses with strong revenue and good credit might find more competitive rates at a large national bank. However, newer businesses or those with lower credit scores will probably have better luck with an online lender or an SBA loan specialist offering SBA 7(a), Express and 504 loans.
To compare your options on $150,000 business loans, enter your time in business, annual revenue and credit score ranges below. After seeing which lenders you may qualify with, select Go to site to begin your application or visit our review page by selecting More info.
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.
To provide a Score, we compare like-for-like loans. So if you're comparing the best business loans for startups loans, you can see how each business loan stacks up against other business loans with the same borrower type, rate type and repayment type.
The application process for a $150,000 loan will vary a bit depending on the lender you choose, but the steps generally look like this:
Getting approved for a $150,000 business loan isn’t as tough as landing a million-dollar loan, but it’s still a big enough amount that lenders require you to show strong financials. If your business is brand new or struggling with cash flow, qualifying can be tricky but not impossible.
Here’s what most lenders look for:
Even if you don’t check every box, some lenders are more flexible than others, so it’s worth shopping around to find the right fit.
You can expect competitive rates for a $150,000 business loan if you’ve been in business a while and have good credit with plenty of revenue. Average business loan rates run between 6.43% to 12.45% at a traditional bank, while rates on SBA loans are capped at the prime rate plus 3% to 6.5%. Of course, rates for bad credit business loans are much higher, reaching up to 18.72% or more.
The overall cost of your $150,000 loan is determined by your APR and repayment term, so it’s important to shop around to get the best deal. For example, if you take out a $150,000 business loan for 5 years at 7%, you’ll pay $2,970 monthly with a total of $28,210 in interest. But the same loan amount repaid over 10 years at 12% will cost a whole lot more. Even though your monthly payments will be smaller at just $2,152, you’ll end up paying $108,247 in interest over the life of the loan.
You can play around with how much a $150K business loan may end up costing you by adjusting the terms you can get in our calculator below.
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A $150,000 business loan comes in many forms. Some loans provide lump sums for major expenses, while others offer ongoing access to credit. Here are the most common types of business loans at this amount, along with who they work best for.
A short-term business loan is a one-time lump sum that must be repaid within a few months to 18 months. These loans typically have higher interest rates than longer-term options, but they are easier to qualify for and fund quickly — sometimes within 24 hours. They’re a solid choice for businesses facing unexpected expenses or short-term cash flow gaps.
A business term loan provides a fixed amount of financing with repayment terms ranging from two to 10 years (or up to 25 years for long-term loans). These loans typically come with fixed monthly payments and lower interest rates than short-term loans, making them a great choice for working capital, expansion or major purchases. Banks and credit unions often offer the best rates, but online lenders may provide faster approvals.
A business line of credit offers revolving access to funds, meaning you can borrow and repay as needed. You only pay interest on the amount you use, making it a flexible option for ongoing expenses like payroll, inventory or emergencies. Lines of credit can be secured (backed by collateral) or unsecured (based on creditworthiness).
A merchant cash advance (MCA) isn’t a traditional loan — it’s an advance on your future credit card sales. Lenders take a daily or weekly percentage of your sales until the advance is repaid. MCAs are one of the easiest financing options to qualify for, but they come with very high fees and interest rates.
A Small Business Administration (SBA) loan is partially backed by the government, which allows lenders to offer low interest rates and long repayment terms. The most common options include SBA 7(a), Express and 504 loans, which can be used for working capital, real estate and more. While SBA loans are an affordable option, they take longer to fund and require extensive paperwork.
Equipment financing is a secured loan specifically for purchasing business equipment, vehicles or machinery. The equipment itself serves as collateral, making it easier to qualify for than unsecured loans. This type of financing is ideal for companies that need new or upgraded equipment without tying up cash flow.
Inventory financing is a loan backed by your existing or future inventory. This loan type can help businesses purchase products in bulk or keep stock levels steady during seasonal fluctuations. It’s a great option for retailers and wholesalers but requires strong inventory tracking and reliable sales projections.
A commercial real estate loan is used to purchase, refinance or renovate business property. These loans often have long repayment terms (10+ years) and require a down payment, making them a good option for businesses that want to invest in property rather than lease.
Franchise loans are specifically designed for purchasing or expanding a franchise business. Some lenders offer specialized franchise financing with favorable terms, but eligibility often depends on the franchise’s success record.
When taking out a $150,000 business loan, you’ll typically have two options: secured or unsecured financing.
If you have valuable assets to offer as collateral, a secured loan might be the better choice for lower rates and easier approval. But if you’d rather keep your assets out of the equation, an unsecured loan could work — as long as you’re prepared for higher costs.
It is possible to borrow $150,000 in business financing, even with bad credit, but your options may be more limited. You’ll most likely be approved for a merchant cash advance or invoice financing, which relies on your business revenue or unpaid invoices rather than your credit score. But these may require daily or weekly payments instead of monthly, which can put pressure on your company’s cash flow.
You’ll likely have a better chance at securing a loan if you offer collateral, such as with an equipment loan. There are some bad credit business loans available, but be prepared to pay more in fees and interest to offset the lender’s risk. To improve your chances of approval and secure better terms, consider working on your credit score, building business revenue or seeking a co-signer before applying.
Getting a low APR on your $150,000 business loan can help save you thousands of dollars in interest. Here are a few tips to help you get the lowest APR possible:
Getting a $150,000 business loan is doable, whether you’re an established business with strong financials or a newer company exploring alternative funding options. The key is to compare lenders, check eligibility requirements and find the loan that best fits your needs.
Compare the best small business loans to get prequalified and see what amounts and rates you may qualify for.
It depends on the state of your business and credit profile. If you’ve been in business for several years with strong financials and a solid credit score, getting approved for a $150,000 business loan should be fairly straightforward. But if your credit is less than perfect or your business is still new, you may need to explore alternative lenders or secured loan options to improve your chances of approval.
Yes, you can get a $150,000 SBA loan as long as you meet the requirements for credit score, revenue and time in business. SBA loans tend to have lower interest rates and longer repayment terms, but the application process can be lengthy and paperwork-heavy. If you meet the qualifications and don’t mind waiting a bit longer for funding, an SBA loan can be a great option.
The credit score needed for a $150,000 business loan depends on the lender and loan type. Traditional banks and SBA lenders usually look for a minimum credit score of 670, while online and alternative lenders may approve borrowers with scores as low as 600 — but at higher interest rates. If your score is on the lower end, offering collateral or a personal guarantee could improve your chances of approval.
The repayment structure varies depending on the type of loan you take out. Most $150,000 business loans have fixed monthly payments, but some may require biweekly, weekly or even daily repayments. For example, if you take out a merchant cash advance, your lender deducts a percentage of your sales every day. Always check the terms to make sure the payment schedule fits your expected cash flow and budget.
Yes, but it can be challenging for startups to qualify for a $150,000 business loan without an established revenue history. Some SBA lenders, banks and online lenders may offer startup financing, but traditional banks often have stricter requirements. To improve your chances, be prepared with detailed financial statements, a solid business plan and possibly a personal guarantee.
If you can’t qualify for a business loan, a personal loan might be a reasonable alternative. Since personal loans are based on your credit score and income, you don’t have to worry about your lack of business history. But some lenders have restrictions on using personal loans for business purposes, so be sure to check the terms before applying.
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