Please note: Lending options, rates, and qualifications change regularly. The information in this post is based off of requirements as of original posting date of July 2, 2024.
Securing a business loan of $60,000 is a significant undertaking, but our guide is here to navigate you through the process. With each business loan and financing option carrying its own set of criteria, selecting the most suitable one is crucial.
Our guide will help you understand how to choose wisely, laying out the steps for securing the financing you need.
As with all types of lending, you need to reach different requirements with the proper Fundability in order to fully qualify. This article is giving you the information you need to understand the starting points for some of the most common types of funding available. Additionally, it’s important to keep maximum approval amounts in mind when searching for funding. You will find each one we touch on in this article have a wide range of maximum limits. But with the correct combination, you have the possibility to reach those funding needs and wants much easier.
The table below has the requirements for each major business loan type.
The Best $60k Business Loans
| Loan Type | Requirements | Approval Difficulty |
| Bank Loan (Term Loan) | Good credit, 2 years in business, business cash flow | Hard |
| Business Line of Credit | Good credit, 2 years in business, business cash flow | Hard |
| SBA Loan | Good credit, 2 years in business, business cash flow | Hard |
| Credit Line Hybrid | Good credit | Easy (No Doc) |
| Business Credit Card | Good credit | Easy |
| Equipment Financing | Good credit | Easy |
| Merchant Cash Advance | Credit card sales, bad credit | Easy |
| Cash Flow Financing | Business cash flow, fair credit | Easy |
How to Qualify for a $60,000 Business Loan
Securing a business loan involves meeting six critical criteria, particularly for traditional bank financing. (Alternative financial solutions may be more forgiving.) The essential factors are:
- Personal Credit: The majority of lenders focusing on small businesses expect the business owner to possess strong personal credit ratings.
- Business Credit: Solid business credit scores and comprehensive reports facilitate the loan qualification process.
- Business Income: Nearly all forms of business financing necessitate the demonstration of some sort of revenue.
- Collateral: Securing approval for loans backed by collateral, like vehicle loans, commercial mortgages, and equipment financing, tends to be simpler.
- Time in Business: Numerous business financiers prefer observing a minimum of 2 or 3 years of operational history.
- Industry: Certain sectors struggle to gain approval, no matter how robust their financial statements may be.
The Best $60k Business Loan Types
Bank Loans (Term Loans)
Conventional business loans from banks are termed as term loans. Regular repayments are made over a set period, such as 3 or 5 years, typically featuring fixed interest rates.
Requirements: Typically, bank term loans demand the small business owner to possess strong personal credit (FICO Scores above 680), a minimum of two years of business operation, and yearly revenue of at least $100,000.
Business Line of Credit
Similar to term loans, business lines of credit usually come from conventional banks. They offer low interest rates, however, the qualification process is stringent.
Obtaining a business line of credit means you receive a loan with a revolving nature, akin to a credit card.
There’s a set credit limit, for example, $60,000, indicating the maximum amount you can utilize, followed by the requirement to make minimum payments periodically to settle the balance.
Requirements: Business lines of credit typically necessitate the small business owner to maintain strong personal credit (FICO Scores of 680 or more), a minimum of two years in operation, and over $100,000 in annual income.
SBA Loans
SBA Loans are conventional bank loans backed by government guarantees, which is why they feature notably low-interest rates and favorable terms. However, securing them can be challenging.
There exists a variety of SBA loan types, with 7a and 504 loans being the predominant ones.
Requirements: Each SBA loan varies in its prerequisites. Yet, commonly, they demand a period of business activity (no less than one year), respectable personal credit scores, and some degree of business earnings.
Credit Line Hybrid
The Credit Line Hybrid, an innovative offering from Credit Suite, provides funding from $10,000 to $150,000. These are no-documentation business loans known for their rapid approval processes.
Requirements: The Credit Line Hybrid necessitates strong personal credit ratings (FICO Score above 680). It’s open to applications from new enterprises with no operational history, no collateral, and minimal cash flow. Qualifying for \Credit Line Hybrid is comparatively straightforward.
Business Credit Cards
Business credit cards represent another accessible financing option, functioning similarly to personal credit cards. You receive a designated credit limit available for use whenever needed, followed by the obligation to cover the balance with modest, monthly installments.
The primary distinction between business and personal credit cards lies in the higher credit limits offered to businesses. Moreover, by establishing business credit, even owners of small businesses can secure these cards without relying on their personal credit.
Requirements: To qualify for business credit cards, possessing good personal credit is essential. Although a few demand evidence of business earnings, it’s not a stipulation for all.
Equipment Financing
Equipment financing presents another accessible funding option. This method entails obtaining a loan or entering a lease agreement, with consistent monthly installments over a period to acquire heavy machinery or equipment.
Should you need a $60,000 business loan for equipment acquisition, consider beginning with this route.
Requirements: Equipment financing demands solid personal credit and indicates your intention to participate.
Merchant Cash Advance
Merchant cash advances are secured against a company’s “merchant processing” capacity, or credit card receipts. In this arrangement, the credit ratings of the business owner and other criteria have little influence.
When the funds are advanced, repayment is managed automatically by deducting a percentage of sales, thus avoiding fixed payment schedules.
Given their high financing costs, these advances should be considered a last resort if other financing avenues are accessible to the business owner.
Requirements: Solid monthly credit card revenue, ideally over $10,000. Poor credit is permissible.
Cash Flow Financing
Given the strict constraints of merchant cash advances, Credit Suite has enhanced the offering with Cash Flow Financing. Similar to a merchant cash advance, qualification for this financing hinges largely on a business’s cash flow.
However, unlike the former, which is confined to businesses with credit card revenue, Cash Flow Financing allows for various forms of cash flow to be considered for eligibility.
Requirements: Strong cash flow, at least $10,000 per month. Below average credit scores accepted.
Looking for another loan amount? Consider these articles: $30k Business Loan Options, $40k Business Loan Options, $50k Business Loan Options, $70k Business Loan Options, $80k Business Loan Options, $90k Business Loan Options, and $100k Business Loan Options.
