Score the Best Online Lenders if You Need $1 Million or More for Your Business
There are several online lenders but only some of them will provide $1 million or more. Qualifications including annual revenue and time in business requirements can vary. So can personal credit score requirements. Here are the details about the best online lenders if you need $1 million or more.
Note: this post was updated in August of 2020.
Background on the Best Online Lenders if You Need $1 Million or More
We researched all of these lenders and asked about their programs, rates, terms, and features. We gave them every opportunity to add to and enhance our research.
Rates can rise and fall. So this is normal when it comes to financing. We suggest you investigate these lenders yourself to confirm our numbers before requesting funding.
The Best Online Lenders if You Need $1 Million or More: Start with the SBA Itself
SBA loans can be found online, just go to their page: https://www.sba.gov/blog/where-find-small-business-loans-online
SBA Loans
For SBA Loans, the SBA offers loans through lenders. Note: the SBA defines the terms.
Most SBA 7(a) loans have a maximum loan amount of $5 million. However, SBA Express loans have a maximum loan amount of $350,000. SBA Export Express loans have a maximum loan amount of $500,000.
The SBA’s maximum exposure is $3.75 million ($4.5 million under the International Trade loan). If a business receives an SBA-guaranteed loan for $5 million, the maximum guaranty to the lender will be $3.75 million, or 75 percent. The guaranty percentage varies depending on the loan amount and program type.
See: https://www.sba.gov/partners/lenders/7a-loan-program/terms-conditions-eligibility#section-header-1.
The SBA sets the guidelines that govern the 7(a) loan program. As a lender, these conditions determine which businesses a lender can lend to and the type of loans they can give.>
The specific terms of SBA loans are negotiated between the borrower and the participating lender, subject to the requirements of the SBA. In general, the following provisions apply to all SBA 7(a) loans.
Loan amounts
Most 7(a) loans have a maximum loan amount of $5 million. However, SBA Express loans have a maximum loan amount of $350,000. SBA Export Express loans have a maximum loan amount of $500,000.
The SBA’s maximum exposure is $3.75 million ($4.5 million under the International Trade loan). If a business receives an SBA-guaranteed loan for $5 million, the maximum guaranty to the lender will be $3.75 million, or 75 percent. The guaranty percentage varies depending on the loan amount and program type.
Maturity terms
SBA loan programs are generally intended to encourage longer-term small business financing. Loan maturities are based on the ability to repay, the purpose of the loan proceeds, and the useful life of the assets financed.
The maximum maturities for SBA loans are as follows:
- 25 years for real estate
- 10 years for equipment
- 10 years of working working capital or inventory loan
The maximum maturity of loans used to finance fixed assets other than real estate will be limited to the economic life of those assets, in no instance to exceed 25 years. The 25-year maximum will generally apply to the acquisition and/or improvements of land and buildings or the refinancing of debt incurred in their acquisition. Where business premises are to be constructed or significantly renovated, the 25-year maximum would be in addition to the time needed to complete construction. (Significant renovation means construction of at least one-third of the current value of the property.)
When loan proceeds will be used for a combination of purposes, the maximum maturity can be a blended maturity based on the use of proceeds or up to the maximum for the asset class comprising the largest percentage of the use of proceeds.
Interest rates
So interest rates are negotiated between the borrower and the lender, but are subject to SBA maximums, which are pegged to the prime rate, the LIBOR rate, or an optional peg rate. Interest rates may be fixed or variable.
But if your company can’t qualify for an SBA loan, you should not be looking there for financing.
The Best Online Lenders if You Need $1 Million or More: Fundera
Fundera is not an actual lender. Rather, Fundera is a marketplace connecting small business owners to financing for their business via traditional and alternative lenders. There are several financing options.
SBA Loans
Most companies approved had four or more years in business. Most business owners approved had 680 or better credit scores. And most companies approved had $180,000 in annual revenue. Loan amounts run from $5,000 – 5 million, with 5 – 25 year terms. You can get funding in as little as 2 weeks. However, they may require collateral.
Their interest rates start at 7.75%.
Business Lines of Credit
Most companies approved had been in business for a year or more. Most business owners approved had a credit score of 630 or better. And most companies approved had $180,000 or more in annual revenue. $10,000 to over $1 million in funding is available, with 6 months to 5 years terms. Approval is in as little as one day.
Interest rates range from 7 to 25%. However, they may require collateral. And there are higher rates for lower credit scores. But that is likely something you should expect fairly well anywhere.
The Best Online Lenders if You Need $1 Million or More: Lendio
Lendio offers business lines of credit and term loans. Apply for a loan and get access to their lender marketplace. In fact, there are other online lenders in their lender marketplace.
Longer Term Loans
For their longer term loans, their loan amounts are $5,000 to 2 million. And their loan terms are 1 to 5 Years. Your payment frequency can be weekly, bi-monthly, or monthly. And your time to funds is as little as 24 hours.
So their rates are as low as 6%. But short-term loans only go up to $500,000.
The advantages include flexible payment frequencies and several loan options.
The Best Online Lenders if You Need $1 Million or More: Rapid Finance
Rapid Finance is a company that offers various small business loans.
Rapid Finance Loans
So for their standard loans, $5,000 to $5.5 million is available. Their terms range from 3 to 60 months. Pay back with automatic daily, weekly, or monthly payments. Get funds in as fast as one day.
Commercial Real Estate Loans from Rapid Finance
Get loans from $75,000 to $2,000,000. Loan terms are 20 to 30 years (this is a mortgage). Enjoy automatic monthly payments and a fast and easy application.
The Best Online Lenders if You Need $1 Million or More: Check Out Commercial Real Estate Financing from Credit Suite
Did you know that Credit Suite offers commercial real estate financing? It ranges from $100,000 – $20,000,000. This financing can be used for refinancing a property, even if you are doing a cash-out refinance. Maximum LTV is 70%.
Loan-to-values range from 55 – 65%, depending on the purpose of the loan. Plus your clients can also get SBA loans. Renovations get loan to value of up to 60%.
Credit Suite has funding programs available including conventional property financing, money for investment properties and hard money loans, bridge loans and loans for the purchase of commercial real estate.
Which Buildings Qualify?
So you can get commercial real estate financing for all types of buildings! Credit Suite offers financing for many different, even unique property types. Get funding for offices, industrial offices (this includes general or medical/dental), industrial facilities, light manufacturing buildings, and self-storage facilities.
With our commercial real estate financing, you can also get funding for mixed use properties, commercial condos, auto dealerships, light auto services, and day cares. And with our commercial real estate financing, you can even get funding for assisted living facilities, entertainment venues, multi-family properties, retail warehouses, and more.
Details
Check out the details of Credit Suite’s commercial real estate financing program. Approval amounts go up to $20,000,000. Bad credit is accepted. Use the real estate as collateral. You will need to provide bank statements. A commercial real estate loan is a big step. So let’s take it together.
Get the Prize: the Best Online Lenders if You Need $1 Million or More 
Getting $1 million or more in funding is not easy. Here are some pros and cons.
A company can get the most money from Credit Suite, with up to $20 million for commercial real estate.
So Lendio and Rapid Finance both offer loans of over $1 million.
Fundera’a qualification process will take one day. Plus Fundera will provide funding for a short time in business, one year.
To Get $1 Million or More: A Caveat and a Word to the Wise
As with all funding sources, make sure to read the fine print carefully. Your own individual requirements and needs are most important when determining where to get business funding. In particular, your ability to pay back any funding is crucial.
What are your experiences with the best online lenders if you need $1 million or more?
