Business lenders offer $600,000 loans in the form of term loans, lines of credit, real estate loans and more. But a loan of this size can be more difficult to qualify for than smaller loan amounts.
To qualify, you’ll typically need to be in business for at least two years, with revenue in the millions. Be sure to compare multiple providers to find the most competitive rates and terms before you apply.
You can get a $600,000 business loan from banks, online lenders, community lenders and lenders that offer financing backed by the Small Business Administration (SBA). Some online lenders, like Fora Financial, also offer $600,000 in financing — though it’s not as common.
Bank loans are best for more established businesses that have been around for at least three to five years and have positive revenue. SBA loans can be a good choice if your business can’t qualify with a bank, since they’re partly backed by the federal government.
A local lender like a community development financial institution (CDFI) could also be a good low-cost option for new businesses and bad-credit borrowers. Online business lenders also often work with startups or accept bad credit. But expect to pay higher rates and fees than with other providers.
Filter $600,000 business loans by your company’s annual revenue, credit score and time in business to see personalized options.
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.
While the application process differs depending on the lender and loan type, follow these steps to apply for a $600,000 loan.
To qualify for a $600K business loan, you and your business should be prepared to meet the following criteria:
The cost of a $600,000 loan varies depending on your interest rate, fees and loan term.
For example, let’s say your loan came with a 9% APR and a 10-year term. This particular $600,000 loan would have a $7,600.55 monthly payment, and you would pay a total of $312,065.57 in interest and fees by the time your term is up.
Use our business loan calculator to compare monthly payments on a $600,000 business loan based on different rates and loan terms.
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The following are common types of business loans that finance up to $600,000 or more:
Term loans are the most common type of business loans, and it comes with both short-term or long-term options, although a $600K loan may be more suited to a longer term. Interest rates are typically fixed, and you’ll repay the loan in equal monthly installments. Large term loans — especially from national banks — may have strict requirements to qualify but usually offer some of the most competitive rates in the market. Online lenders normally charge higher rates and fees but can be easier to qualify for.
A business line of credit offers you access to a revolving credit limit that replenishes as you pay it back. However, it can be more difficult to find business LOCs that offer credit limits up to $600,000. In general, online lenders cap credit lines around $250,000 to $500,000, but there are some options for credit limits into the millions. It’s one of the most flexible types of business funding because you only pay interest on the funds you use, but loan terms are usually less than 24 months, and for a credit line of this size, you may need to put up some collateral.
Some SBA loan programs, such as the 7(a) and 504 programs, offer business loans up to $600,000 and higher. Backed by the federal government, SBA loans are provided by banks, credit unions and online lenders. And because they’re guaranteed by the SBA, it can make it easier for some businesses to qualify. However, SBA loans have strict requirements, and the application process can be lengthy. You may also need to make a down payment of at least 10% and pay a guarantee fee, which varies by loan type and amount.
Equipment loans are a type of financing where your purchase is the collateral that secures the loan — similar to an auto loan. And the good news is that secured loans typically have better rates than unsecured loans. But on the flip side, secured equipment loans mean your assets can be seized if you don’t make the payments. Plus, while some equipment lenders will finance 100% of the purchase price, others may require you to make a down payment.
When you buy a commercial property or a larger building to expand your business, a commercial real estate loan usually makes the most sense. And the property acts as collateral for the loan, so you should be able to get a competitive rate. However, you’ll need to come up with a down payment, and you risk losing the real estate if you can’t afford the payments.
If your company has a lot of credit card sales, a merchant cash advance — aka, a revenue advance or business cash advance — is an option, although it’s one of the pricier forms of business financing. You take out an advance based on your future card sales or revenue and pay it back, plus fees, with weekly or daily repayments. Funding for MCAs is typically fast, but the repayment schedule and expense make it only viable as a short-term solution.
Invoice factoring is a type of short-term funding where you sell a percentage of your outstanding invoices to a factoring company in exchange for a lump sum of cash. Then, as your customers pay the factoring company, it sends you the difference minus its fees. While invoice factoring can provide fast funding, rates are high and it’s not feasible for companies that aren’t business-to-business (B2B).
Invoice financing uses your invoices as leverage for funding. But instead of selling your invoices to a factoring company, you get a loan based on a percentage of your outstanding invoices. You’ll then repay the advance, plus fees, as your customers settle their bills. With this option, you maintain control of your invoices, but it’s expensive and may cost even more if your customers are late paying you.
Business loans can either be secured or unsecured. Loans in the $600,000 range generally require collateral — especially if it’s an equipment loan or to buy commercial real estate. That said, getting an unsecured business loan of $600,000 may be possible from certain online lenders.
You’ll need a higher credit score and stronger business finances to qualify for an unsecured business loan. You’ll also probably need to show more business experience, requiring at least two years in business for approval.
To get a $600K loan, you’ll need good credit and at least a year in business to get approved for such a high amount, even with a secured loan. To compare lenders and get prequalified, see our picks for the best business loans.
It’s more difficult to borrow $600,000 than it is to get a smaller business loan. Lenders are most concerned about your ability to repay the funds, so they’ll typically have more stringent requirements to qualify than if you only needed $50,000. Plus, loans of this size may also require more paperwork and take longer to process.
If you have bad credit, your best options might be a merchant cash advance or accounts receivable financing. That’s because providers that offer those types of funding are more concerned with your sales or invoices than your credit score.
Some online lenders offer loans to borrowers with bad credit but generally charge higher rates and fees to offset the risk.
You can get a $600,000 loan through several SBA programs. But, to qualify for an SBA loan, your business must show that it can’t qualify for a bank loan — that’s why it’s helpful to apply with bank and SBA lenders. And while not mandated by the SBA, most lenders also require owners to have at least a 620 credit score.
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