$5 million business loans

You might have to turn to a bank or a lender specializing in high-dollar financing to find a $5 million loan.

Business loans in amounts as high as $5 million can be difficult to qualify for – and difficult to find. That’s because lenders take on a huge amount of risk offering up such a large amount of money. To borrow such a high amount, you’ll typically need to turn to a big bank or a lender specializing in high-dollar financing, have strong personal credit and have a high enough revenue to be able to afford five-digit monthly repayments.

Where can I get a $5 million business loan?

To get a $5 million business loan, you’d likely need to turn to a large bank or a lender that specializes in high-dollar financing for businesses.

The type of financing that you’re looking for can also play a role in the type of lender that you turn to for financing. If you’re looking for a term loan, again a bank or lender specializing in high amounts would likely be your best options. Businesses that rely on invoices from other companies may find a factoring lender useful, while retailers might be able to qualify for funding from a merchant cash advance company.

How can I qualify for a $5 million business loan?

Eligibility requirements vary by lender and the type of financing you’re interested in. If you’re interested in a $5 million business loan, you’ll likely need to meet the following criteria:

  • Strong personal credit of 700 or higher.
  • Established business with years of experience.
  • Strong business financials to afford repayments.
  • Consistent cash flow.
  • Annual revenue well into the millions.
  • Collateral to back the loan.
  • Established relationship with the lender.

How much will a $5 million business loan cost?

It depends on your business and the type of financing you choose. Loans of this size typically come with relatively low rates and long terms — think APRs between 4% and 10% and loan terms ranging from 3 to 25 years.

As an example, a $5 million loan with a 25-year term at an interest rate of 10% would cost $45, 435.04 a month.

Let’s take a look at an example …

Spencer owns a campus bookstore called Bookends. The business was doing well enough that he decided to open a second location in the area. But real estate in such a prime location wasn’t cheap, and he needed to take out a $5 million business loan to cover the cost.

After narrowing down his options, Spencer decided to apply for a business term loan that allows him to use the money toward buying real estate.

He applied and qualified for a $5 million loan with the following rates and terms:

  • Interest rate: 7.5%
  • Loan term: 25 years

Taking the rate and term into account, monthly loan repayments will be $36,949.56 a month — with a total of $6,084,867.67 paid in interest over the life of the loan.

Business loan calculator

Use this business loan calculator to find out how much your monthly payments could cost.
Your loan
Loan amount
$
Loan terms (in years)
Interest rate
%

Fill out the form and click on “Calculate” to see your estimated monthly payment.

or

Compare business loans
You can expect to pay back $ per month
Based on your loan terms
Principal $
Interest $
Total Cost $

4 types of $5 million business loans

You have several types of financing to choose from when looking to borrow $5 million — though not all are right for every business.

1. Business term loan

A business term loan comes in one lump sum, which you repay over a period of 5 to 25 years, plus interest and fees. Term loans of $5,000,000 might be available through large banks or online lenders that specialize in high-dollar financing.

You generally need to have near-perfect credit and high monthly revenue to qualify for a $5 million term loan. It also helps to have a good relationship with the lender you’re applying with. Collateral is also usually required for a loan of this size.

Consider using a term loan if …
  • You need to fund a one-time expense.
  • You and your business partners have excellent personal credit.
  • You have a good relationship with your lender.
Consider other options if …
  • It’s hard to predict your business’s costs.
  • You have weak or poor credit.
  • Your business lacks sufficient collateral.

2. Business line of credit

A line of credit makes sense when you have an ongoing project you need to fund, like construction or expansion. Rather than borrowing $5 million all at once, you get access to a credit limit up to $5 million – which you can draw from as needed. You only have to pay interest on the amount you actually borrow.

The same types of lenders that offer term loans also usually offer lines of credit of this amount. Similar eligibility requirements also apply.

Consider using a line of credit if …
  • You have costs that are unpredictable.
  • You and your business partners have strong personal credit.
  • You have enough collateral to back a $5-million credit line.
Consider other options if…
  • You don’t have enough collateral.
  • You only need funds for a one-time project.
  • You or another business partner have poor credit.

3. Merchant cash advance

Retailers can get an advance on their future sales through this high-cost alternative to traditional business loans. Generally, merchant cash advances have less stringent eligibility requirements and a much faster turnaround — think a few days, rather than weeks.

Instead of interest, these come with a flat fee that you repay with a percentage of your company’s sales. However, these can be significantly more expensive than traditional financing.

Consider using a merchant cash advance if …
  • You own a retail business.
  • You’ve struggled to get financing elsewhere.
  • You don’t have the time to spend on a lengthy application.
Consider other options if …
  • You’re not in the retail industry.
  • You can qualify for a term loan or line of credit.
  • You have the time to spend on a more detailed application.

4. Invoice factoring

Similar to a merchant cash advance, this option offers an advance on your business’s unpaid invoices from other companies or government agencies. It involves selling your unpaid invoices at a discount to a third party. You typically receive around 80% to 95% of the unpaid amount upfront and get the remaining amount after your clients have paid.

Invoice factoring is typically fast, and you can qualify without revenue or excellent credit. However, it’s also expensive compared to other options.

Consider invoice factoring if …
  • Your business has at least $5.5 million in unpaid invoices.
  • You need money quickly.
  • You’ve struggled to qualify for other types of financing.
Consider other options if …
  • Your business has less than $5.5 million in unpaid invoices.
  • You have time to spend on lengthier applications.
  • Your business can qualify for a term loan or line of credit.

Compare business loans

We don’t currently have any lenders offering up to $5 million in business financing. However, you can compare lenders offering business loans up to $500,000 in the table below.

1 - 3 of 3
Name Product CAFBL APR Range Loan Amount Loan Term Minimum Revenue Minimum Time in Business Loans Offered Broker Compliance
Journey Capital logo
8% – 29%
$5,000 - $300,000
4 - 24 months
$100,000/year
6+ months
Term Loan, Line of Credit, Merchant Cash Advance
To be eligible, you must have been in business for at least 6 months with a minimum annual gross revenue of $100,000.

Journey Capital offers fast and simple financing. Apply in less than 10 minutes with your basic business information and see your loan offers without hurting your credit score. Get approved within 1 business day, and choose your term, amount and payback schedule once approved.
Merchant Growth logo
12.99% – 39.99%
$5,000 – $800,000
6 – 24 months
$10,000 /month
6 months
Unsecured Term, Line of Credit, Merchant Cash Advance
To be eligible, you must have been in business for at least 6 months and have a minimum of $10,000 in monthly sales.

Merchant Growth offers financing tailored to business needs. It specializes in providing capital based on future cash flows, but it also offers fixed solutions. Fill out an application within 5 minutes and get your funds within 24 hours.
Loans Canada logo
6.99% - 46.96%
$500 - $500,000
3 - 60 months
over $10,000/month
9 months
Unsecured Term
Loans Canada is a loan search platform with access to multiple lenders. Applicants will be matched with a suitable lender based on credit history and borrowing requirements.
To be eligible, you must have been in business for at least 100 days, have a Canadian business bank account and show a minimum of $10,000 in monthly deposits ($120,000/year).

Loans Canada connects Canadian small business owners to lenders offering financing up to $500,000. Complete one simple online application and get matched with your loan options.
loading

Compare business bank accounts

1 - 7 of 7
Name Product CAFSA-BUS Monthly Account Fee Multi Currency Accounts FX Fee Corporate Credit Card Accounting Integration Offer
RBC Digital Choice Business Account
Finder Score: 4 / 5: ★★★★★
RBC Digital Choice Business Account
$6
CAD only
Varies
Quickbooks, Sage, Xero
Get unlimited electronic debit and credit transactions, unlimited electronic cheque deposits, unlimited Moneris deposits and 10 free outgoing Interac e-Transfer transactions per month.
Sole proprietorships and corporations accepted.
Airwallex Business Account
Finder Score: 3.8 / 5: ★★★★★
Airwallex Business Account
$0
CAD, USD, GBP, EUR + 17 more
0.5% - 1%
Quickbooks, Xero + more
Sign-up and get a $500 bonus in FX conversions. Open and manage multiple global accounts with no monthly fees. Send and receive payments in 16 different currencies and avoid costly conversion and transaction fees.
To be eligible, you'll need to have a registered Canadian corporation.
Jeeves Business Account
Finder Score: 3.9 / 5: ★★★★★
Jeeves Business Account
$0
CAD, USD, EUR, GBP + 2 more
From 0.20%
Quickbooks, Xero
Issue unlimited pre-funded corporate cards in local currencies, send payments to 150+ countries, and manage global expenses all from one platform.
To be eligible, you'll need to have a registered corporation and a revenue of at least $50,000/month.
RBC Flex Choice Business Account
Finder Score: 4 / 5: ★★★★★
RBC Flex Choice Business Account
$7
CAD
Varies
Quickbooks, Sage, Xero
Bank both digitally and in-branch and only pay for what you use. No minimum or maximum transaction limits.
Sole proprietorships and corporations accepted.
Loop Global Business Banking Account
Finder Score: 3.7 / 5: ★★★★★
Loop Global Business Banking Account
$0
CAD, USD, GBP, EUR
0.1% - 0.5%
Quickbooks, Xero
Eliminate FX fees with a Loop credit card. Spend in CAD, USD, GBP and EUR and earn points to use toward travel and experiences. Get up to a $1M credit limit.
To be eligible, you'll need to have a registered Canadian corporation and provide proof of an active business (bank statements, contracts with suppliers, financial or CRA statements, etc.)
Wise Business
Finder Score: 3.8 / 5: ★★★★★
Wise Business
$0
CAD, USD, GBP, EUR + 6 more
0.48%
Quickbooks, Xero + more
No hidden charges, high rates or monthly fees. Get the mid-market exchange rate. Pay employees, get paid and manage your cash flow in over 70 countries.
To be eligible, you'll need to have a registered Canadian corporation.
Vault Business Banking Account
Finder Score: 3.8 / 5: ★★★★★
Vault Business Banking Account
$0
CAD, USD, GBP, EUR
0.25%–0.45%
Quickbooks, Xero
Earn 1% unlimited cashback on your Vault multi-currency corporate credit card. No currency limitations. Set up accounts in CAD, USD, GBP and EUR, enjoy $0 local transfers.
To be eligible, you'll need to have a registered Canadian corporation.
loading

Bottom line

It’s a challenge to qualify for $5 million in business funding — many lenders don’t even offer loans this high. But there are still options for businesses with strong financials and established operations. You and your business will likely need to be financially sound and have the collateral to back the loan to qualify.

Want to learn more about the world of business financing? Head to our guide to business loans.

Frequently asked questions

Anna Serio's headshot
Written by

Editor

Anna Serio was a lead editor at Finder, specializing in consumer and business financing. A trusted lending expert and former certified commercial loan officer, Anna's written and edited more than 1,000 articles on Finder to help Americans strengthen their financial literacy. Her expertise and analysis on personal, student, business and car loans has been featured in publications like Business Insider, CNBC and Nasdaq, and has appeared on NBC and KADN. Anna holds an MA in Middle Eastern studies from the American University of Beirut and a BA in Creative Writing from Macaulay Honors College at Hunter College, CUNY. See full bio

Anna's expertise
Anna has written 61 Finder guides across topics including:
  • Personal, business, student and car loans
  • Building credit
  • Paying off debt
Emma Balmforth's headshot
Co-written by

Producer

Emma Balmforth is a producer at Finder. She is passionate about helping people make financial decisions that will benefit them now and in the future. She has written for a variety of publications including World Nomads, Trek Effect and Uncharted. Emma has a degree in Business and Psychology from the University of Waterloo. She enjoys backpacking, reading and taking long hikes and road trips with her adventurous dog. See full bio

More guides on Finder

Ask a question

You must be logged in to post a comment.

Go to site