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$100k Business Loans: How to Get a $100,000 Small Business Loan

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$100k Business Loans: How to Get a $100,000 Small Business Loan

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Lenders for $100,000 business loans for bad credit

Bad credit can present challenges when the need for funding arises. Driven by determination to grow your business, you may be on the hunt for a lender willing to loan you money. Here are some lenders to consider for $100,000 business loans if you have bad credit. 

Credibly: Best for fast, short-term funding

Credibly offers small business financing products that are competitive. Credibly offers working capital loans and merchant cash advances and partners with other lenders to offer even more products. While appealing, Credibly is best for more established businesses that want cash fast. Additionally, they pride themself in delivering superior customer service. 

Fora Financial: Best for startups with bad credit 

  • Small business loans and merchant cash advances up to $1.4 million
  • Minimum credit score requirement 500

On term loans Fora Financial charges a factor rate rather than an interest rate. Additionally, they charge an origination fee too. While loans may be more expensive, lending requirements are lenient. In addition to a low credit score requirement, Fora Financial also has low revenue requirements compared to other lenders. Their requirements make them ideal for startups or new businesses. When borrowing with bad credit you can expect to pay more for a loan. Before applying, gather documentation as Fora Financial will likely request plenty of it. 

Rapid Finance: Best for business owners that may not qualify for traditional financing

  • Variety of business loans up to $600k
  • Minimum credit score requirement 620

Rapid Finance offers a variety of business loans including SBA loans, lines of credit, invoice factoring, and more. With a wide variety of products they can help more businesses find the right solution. Rapid Finance also offers merchant cash advances, which can be expensive, but can present an opportunity for funding for businesses that are struggling to qualify for alternatives. Ideal for borrowers that have less than perfect credit and need funds fast, Rapid Finance can help. Take advantage of a streamlined application process and flexible requirements, but be aware of interest and fees. Some reviews highlight that Rapid Finance may not be the most transparent about disclosing the finer details of a loan, such as the interest and fees

Kickfurther: Best for affordable inventory funding

  • Inventory funding up to $2 million
  • Minimum credit score requirement 600

Kickfurther offers a unique funding solution for businesses that need working capital for inventory. Through their creative platform, business owners can connect to a community of backers to get funding. Up to 30% cheaper than other options, Kickfurther is as real as it gets - no tricks. Funding through Kickfurther’s platform is not a loan and does not require business owners to give up equity. Founded by an entrepreneur that understands what’s most important, Kickfurther is designed to help businesses grow. 

Lenders for $100,000 business loans for good credit

Obtaining a business loan with good credit can expand your options. However, even with good credit, finding the right lender will be key in your success and overall experience. While you may have more options, you’ll want to do your research to choose wisely. Here are some top lenders to consider for a $100,000 business loan with good credit. 

VFI: Best for equipment financing for good credit

  • Equipment financing up to $10 million
  • Minimum  credit score requirement 650 

VFI is a competitive lender that strives to outperform banks by offering a fast, easy, and efficient process for equipment financing. With the ability to finance new or used equipment, VFI Finance is a go to lender for good credit business owners. Part of their values is to deliver service that they would want to receive. Prioritizing superior service, VFI is a financial partner that you will want to know. 

Fundation: Best for fast funding with flexible terms for good credit

  • Business loans up to $500k
  • Minimum credit score requirement 660

Fundation is preferred by business owners who need short-term funding (between 1-4 years) fast with flexible terms. With an average funding time of 1-3 days, business owners can get the funds they need quickly once approved. During the application process, Fundation invests time to get to know the business and why they need the funds. This can help them better meet the needs of the borrower. If you appreciate a human touch combined with the opportunity to grow, consider a business loan from Fundation. 

How do you get a $100k small business loan?

The process of obtaining a $100,000 business loan isn’t too different from any other loan application. However, since a $100,000 loan is above the average, you must thoroughly apply to receive the best loan options. Plus, you’ll need financial stability and supporting documents to show that your business is responsible enough to handle a loan of this size. Here are some steps to take for a $100,000 business loan.

  • Determine what you need the money for - As you prepare for your loan, consider what you’ll use the $100,000 for. Depending on your loan's purpose, you should apply for different types of loans. For example, a business line of credit might be your best option if you borrow money repeatedly to cover expenses or improve cash flow. But if it’s for a piece of specific equipment, you should opt for equipment financing.
  • Prequalify - Once you’ve narrowed in on the purpose of your loan, confirming the loan requirements and prequalifying can be helpful. While each product will have different requirements, you should have at least a good credit score and have access to personal and business documents that show your financial history. For insight into how a lender will evaluate you as a borrower, visit mySMBscore for valuable insights. Plus, you can take advantage of improvements that can help you qualify for better terms. 
  • Shop for the best rates - With so many loan products available for business owners, it’s important to shop around and compare rates. With mySMBscore, you can compare multiple personalized small business loan quotes from lenders ready to work with you, saving you time and money.
  • Submit application - If you’ve found the best loan option for your needs, the next step is to submit your application. You’ll probably have to submit personal and financial information like your tax returns, social security number, and documents that outline your company’s revenue. If you opt for an online lender, you can get approved within a few hours, while traditional banks can take longer to review applications. Funding times can vary depending on the lender, but by simply asking, you can determine average funding times for the lender of your choice. 
  • Receive funding - Once approved, you can receive your funding and start the repayment process. Certain online lenders can provide your funds within a few days, giving you fast access to your money. Ensure you understand repayment terms clearly before receiving funds, as repayment will start shortly after. 

How much credit do I need for a $100,000 business loan?

While each lender has different requirements for credit score, the higher your credit is, the more likely you’ll get access to the best rates available and be eligible for a business loan. If your credit score is above 700, you will likely be able to obtain any loan product, and a score over 750 will unlock the best possible rates. When applying for a business loan, it’s not uncommon for a lender to reflect on personal as well as business credit score. 

Check with each bank to confirm their credit score for a $100,000 loan to ensure you meet their requirements. You can also utilize mySMBscore to view your business’ credit through the lens of a lender to identify necessary improvements.

How much money do you need for a $100k small business loan?

Depending on the type of loan you’re applying for, you might be required to pay a down payment. For example, commercial real estate loans usually require at least a 10% down payment to qualify, while business lines of credit don’t require a down payment. Beyond that, revenue and assets can impact qualifications. Given existing debts and revenue, you’ll need to demonstrate your ability to repay the loan. 

Can a start-up get approved for a $100k business loan? 

Startups can have difficulty getting approved for a business loan due to their shorter time in business and unpredictable cash flow starting out. However, specific online lenders and government-backed programs still provide financing options to startups.

A popular way for startups to get financing is through an SBA microloan. While these loans have smaller funding limits, they offer a way for early-stage businesses to get the money necessary to expand.

How much is a $100k business loan monthly payment?

The monthly payment for a $100,000 business loan will depend on your interest rate, the repayment period, and the type of loan you get. Several online resources can help you calculate your estimated monthly payment so you have a clear understanding of how you should structure your loan.

For example, a $100,000 business loan with a 6% interest rate over two years will cost about $4,400 monthly. But those same terms paid over five years will cost only $1,900. Consider these factors as you calculate what you can afford to repay monthly. 

Another example, a $100k business loan at a 10-year term with 8% interest is a $1,213.28 monthly payment. Last example of a monthly payment: The monthly payment for a $100,000 business loan at a 10% annual interest rate over a 5-year term is approximately $2,124.70.

What are the requirements to get a $100k business loan?

There is no one-size fits all requirement for business loans. Because of this, make sure to check with each lender to confirm their requirements. However, all lenders will look at a particular set of personal and business-related areas to verify your eligibility.

Since $100,000 is a large business loan, borrowers will likely need a high credit score to qualify. This also applies to your business credit score. If you’re unsure what your business credit score is, mySMBscore can provide you with a free business credit report, arming you with knowledge as you apply for your loan.

To streamline the loan application, make sure you have access to all the relevant business documents, including bank statements, tax returns, balance sheets, and more. Your business should also be registered as an LLC, C-Corporation or S-Corporation. This is done through your state and can take some time, so getting this completed ahead of your loan application is recommended.

Additionally, with such a large loan amount, lenders will want to see exactly how you plan to use the funding to grow your business. You should also include a detailed business plan in your application, outlining how to repay the loan. The more detailed and in-depth the business plan, the more information you’re arming the lender to approve your business loan.

How do I apply for a $100k business loan?

Applying for a $100,000 business loan is a big decision that will impact your finances for several months or years. As you go through the application process, ensure you fully understand what to expect.

  • Calculate how much you can afford to pay back every month. You want only to borrow what you can afford and ensure your monthly payments are within your budget. Otherwise, you can get into a debt cycle and continue having financial troubles.
  • Gather all relevant bank statements and business plans. Whether you opt for an online lender or a traditional bank, you must submit verifying documents confirming your financial position and business outlook.
  • Find the right lender and loan product for your needs. With so many options available, there are countless choices for borrowers to compare as they shop for the right lender. With tools like mySMBscore, business owners can see personalized quotes from lenders in one place, allowing them to find the best terms and conditions for their needs.
  • Follow their application instructions. Once you’ve gathered your documents and chosen a lender, simply follow their application process to determine if you’re approved.  Online lenders can allow you to digitally link bank accounts and statements to streamline the application and get your approval quickly. If you go with a more traditional bank, you might have to print your statements or schedule an in-person meeting. Make sure to confirm the application process once you’ve selected your lender.

Once your application is submitted, you can get a decision on your loan request. If your application is denied, you can use mySMBscore’s platform to get actionable advice on improving your application chances.

How do I qualify for a $100,000 business loan?

The basic qualifications for a business loan will vary from lender to lender. Still, your application will consider a few categories:

  • Personal and business credit score - While most loans won’t require a minimum credit score, they are still key in qualifying applicants. Most banks use FICO’s guidelines, which outline that any score above 670 is good, and anything below 580 is bad. It’s helpful to know what your personal credit score, as well as your business's credit score, is before applying for a loan.
  • Time in business - Lenders feel more confident loaning to businesses with a revenue history and have been in business for more than six months. If you’ve been in business for only a few months, you should explore other financing options, like an SBA microloan or business credit card.
  • Annual Revenue - Most lenders will also have an established “minimum annual revenue” that businesses must meet to qualify for a $100,000 business loan. When you apply, you must submit your bank statements and tax returns to verify these revenue requirements.
  • Collateral - If you’re applying for a secured loan, you’ll have to offer up collateral if you cannot repay the loan. This could be equipment, unpaid invoices, or commercial real estate.

Since each lender will set forth different qualifying requirements, review each bank's options closely to confirm your eligibility. Being eligible for a $100,000 business loan will take time. To prepare for the right time to apply, check your SMBscore.

At MySMBscore, business owners can access their SMB or credit score, receive a breakdown of score components, and understand what information will hold the most weight with lenders. With this information, business owners can better understand what they should qualify for and what steps they can take to improve their financial position. Business owners can connect with lenders that can help with a $100,000 small business loan. 

Information empowers business owners. . . check your SMB score today!

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