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$500,000 Small Business Loans: How To Get a $500k Small Business Loan

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$500,000 Small Business Loans: How To Get a $500k Small Business Loan

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How To Get a $500k Small Business Loan

Lenders for $500,000  business loans:

Most lenders have minimum and maximum loan amounts. For $500,000 business loans, check out the following lenders.

Fora Financial

Fora Financial can offer business loans up to $1,500,000. Highlights of working with Fora Financial include fast funding, no collateral required, and a low minimum credit score requirement of only 500. On the downside, Fora Financial charges a factor right which can equate to high borrowing costs. Factor rates can also be difficult to compare. Fora Financial only offers a maximum repayment period of 15 months. 

Rapid Finance

Rapid Finance offers business loans up to $1,000,000. With a variety of loan types and repayment periods to choose from, Rapid Finance can meet the needs of many businesses. Living up to their name, Rapid Finance, cash can be made available quickly. Additionally, they have a low minimum credit score requirement of only 550. On the downside, loans may require a personal guarantee or lien, which is not totally unusual for large business loans. Most products require automatic payments. 


With loans between $10,000 up to $750,000 available, Kapitus is a top choice for $500,000 business loans. Additionally, repayment periods up to 5 years are available. To further the appeal of Kapitus, they offer a variety of business loans from equipment financing to SBA loans. APRs start at only 5.99%, depending on the creditworthiness of the applicant. However, origination fees may be high. 


Kickfurther offers working capital for inventory. With non-dilutive funding up to $5 million available and low costs of borrowing, Kickfurther offers a unique funding solution. Created by an entrepreneur, Kickfurther strives to offer business owners an affordable funding solution that puts them in control. Take advantage of the opportunity to get inventory now and pay later. Create a profile at Kickfurther to get started. 

Lenders for $500,000 loans for bad credit

Bad credit business loans can be challenging to find. One of the  first steps is finding a lender that you can meet the requirements for. 

  • Fora Financial (minimum credit score requirement 500)

Fora Financial has a low minimum credit score requirement, therefore, they may be able to help business owners with bad credit. On the downside, Fora Financial does not report to major credit bureaus so borrowing will not boost your credit score.

  • Kapitus (minimum credit score requirement 600)

Kaptius offers a low credit score requirement, but not the lowest. However, with a variety of lending products, requirements can vary so they may be worth visiting for a bad credit business loan. 

  • Kickfurther (minimum credit score requirement 600)

Kickfurther offers a unique funding solution designed to offer flexibility. By connecting business owners to a community of backers, businesses can obtain the funding they need for inventory. 

Lenders for $500,000 loans for good credit

If you have good credit your options for a business loan expand. Fundation is a top choice for business loans. With a credit score requirement of 660, you can qualify with good credit, but don’t necessarily need excellent credit. Fundation offers a variety of repayment periods, delivering the flexibility to help businesses grow. 

Lenders That Offer $500,000 Business Loans

  • Rapid Finance - Up to $600k
  • Fora Financial - Up to $1.4 Million
  • Kapitus SBA - Up to $20 Million
  • Kickfurther Inventory Financing - Up to $2 Million
  • Fundation - Up to $500k
  • VFI Equipment Financing - Up to $10 Million

What is a $500,000 business loan?

A $500,000 business loan is a loan designed to help your business grow. It can come in the form of a short-term loan, long-term loan, line of credit, SBA loan, and so forth. No matter what type of loan you end up getting, the great thing about a $500,000 business loan is that you can use it for a wide variety of things, like funding daily operations, paying franchise fees, buying equipment, and expanding marketing efforts. Some loans may have more restrictions than others so check with the lender before assuming. On that note, before applying for a $500,000 business loan define your needs - from how you will use the money to how much you can afford to repay at a time. 

$500k start up business loans

Do you own a startup company looking for a $500k business loan? If so, it may be more difficult than you thought to acquire such a large sum from a lender. Most lenders have strict requirements for acquiring $500k business loans such as a specific amount of business monthly revenue, decent business credit score and history, perhaps above 600, at least 4 - 6 months in business, among other requirements. Of course each lender has different requirements and based on those requirements you may be given loan terms. It can be challenging to get a business loan if you don't have financial history.

If you are a startup, consider these alternatives to acquiring a $500k business loan:

  • Business Loan Through a Traditional Bank: Getting a large loan from a bank for a startup is often difficult due to the high risk involved. You'll need a strong business plan, good personal credit, and potentially some form of collateral.
  • Small Business Administration Loans: The SBA offers loan programs that can help startups. The SBA doesn’t lend directly but guarantees loans made by participating lenders, reducing their risk. The SBA 7(a) loan program is one of the most popular options.
  • Venture Capital and Angel Investors: These investors may provide funding in exchange for equity in your company. If you're looking for $500k you may get it through investors.
  • Crowdfunding: Platforms like Kickstarter or Indiegogo allow you to raise funds from a large number of people.
  • Peer-to-Peer Lending Platforms: Websites like Prosper or Lending Club allow you to borrow money directly from individuals instead of banks or credit unions.
  • Business Credit Cards: While not ideal for long-term financing, business credit cards can be a source for short-term needs.
  • Microloans: Some non-profit organizations offer microloans to startups. These loans are typically smaller than what you'd get from a bank but can be easier to obtain.
  • Equipment Financing: If you need the loan to purchase equipment, equipment financing could be an option. The equipment itself often serves as collateral for the loan.

What are the interest rates for a $500,000 business loan?

When it comes to interest rates, it can be difficult to provide a general range since they can vary depending on a number of different factors. For example, the specific type of loan you're applying for, the time you apply, and your own eligibility can all play a role in determining what kind of rate you'll be able to get. 

The only way to really know what interest rates you qualify for is by reviewing personalized offers. Ready to get started? Check term business loan offers now!

What are the repayment terms for a $500,000 business loan?

The repayment period for a business loan can differ based on factors such as the lender's offerings, the loan type, your qualifications, and more. Keep in mind that a longer term might result in lower payments, but it could also raise the overall loan expenses. While comparing offers, make sure you find a loan that offers affordable payments and low costs overall. You don’t want to spend so much on borrowing costs that you end up unable to pay back the loan!

What types of collateral are required for a $500,000 business loan?

When you go to apply for a business loan, many types of loans will require collateral for you to put up. This means that if you default on the loan or are unable to pay, your assets could be seized by the bank. That’s why it’s so crucial to find a loan option that fits your budget. Collateral requirements can vary but in general can include the following. 

  • Real estate (Commercial, residential property, etc.)
  • Equipment or machinery
  • Inventory
  • Unpaid invoices
  • In some cases, your personal assets, like your home or car

How long does it take to get approved for a $500,000 business loan?

Approval times for a $500,000 business loan can be all over the place, depending on several factors. Some lenders are super quick and can give you an offer in minutes, while others might take a few days, or even longer. SBA loans, for example, can take weeks or even months to process.

Once you start the application process, to keep your loan moving along, make sure you give accurate info from the get-go and provide the lender with the documents they need as soon as possible. 

After you’ve been approved, the next thing on your mind is of course, “when can I get my funds?”.  If you need funds fast, make sure you know before you apply how long it generally takes the funds to get transferred to your bank and or what options are available to receive them. 

Can I use a $500,000 business loan for any purpose?

A $500,000 business loan can be a game-changer for your company, providing you with the financial resources to achieve various goals and improve your overall operations. And the great news is, you can use it for so many different things!

  • Expand your business operations - A significant cash injection like a $500,000 loan can help you scale up your business, whether that means opening new locations, upgrading your existing facilities, or entering new markets. 
  • Purchase equipment or inventory - Whether you’re looking to stock up on inventory or upgrade your equipment, a business loan can help you with those large upfront expenses. 
  • Hire new employees - Grow your business and expand your team by hiring new staff with a business loan. 
  • Marketing and advertising - Increase your marketing and advertising costs to build brand awareness, generate leads, and drive sales.

While business loans have a wide range of uses, always check your loan agreement carefully and verify that your intended use aligns with the lender's requirements.

What documents do I need to apply for a $500,000 business loan?

Supporting documents are a source of truth for lenders. It’s understandable that they’ll likely want to confirm information before they loan your business money. Lenders might request the following documents so it can save time to have them available before applying. 

  • A business plan - A detailed plan outlining your business's goals, strategies, and financial projections.
  • Personal and business credit reports - Lenders will review your credit history to assess your creditworthiness. Use to check your business credit score and get tips on how to improve it.
  • Financial statements - This includes your balance sheet, income statement, and cash flow statement for the past two to three years.
  • Bank statements - Lenders may request several months of bank statements to evaluate your business's cash flow and financial health.
  • Tax returns - Both personal and business tax returns for the past two to three years.

The quicker you can compile and organize these documents, the quicker you’ll be on your way to getting approved and receiving your funds for a business loan!

Are there any fees associated with a $500,000 business loan?

Yes, unfortunately, you can expect a few fees associated with a $500,000 business loan, such as:

  • Origination fee 
  • Application fee 
  • Prepayment penalty

Just make sure you closely review the loan agreement, and don’t hesitate to ask the lender to clarify any fees you're unsure about.

What are the consequences of defaulting on a $500,000 business loan?

Defaulting on a business loan comes with consequences and should be avoided at all costs. 

The consequences for defaulting can include: 

  • Damage to your personal and or business credit score
  • Loss of collateral
  • Legal action
  • Risk of losing business

To avoid defaulting on your loan, always ensure you have a solid plan in place for repaying the borrowed funds and communicate with your lender if you're facing financial difficulties.

How can I qualify for a $500,000 business loan?

Just like each loan product, each lender is unique in their qualifying criteria for a $500,000 business loan. Since the requirements can vary, you may need to get prequalified with more than one lender to determine which can extend the most competitive offer or simply put just return an offer. 

Requirements can include:

  • A good personal and business credit score - Lenders can look at your personal and business credit scores to assess your creditworthiness and confirm you can manage money responsibly. A higher credit score increases your chances of returning a loan offer. Curious about what your business score is or how to improve it? Use mySMBscore to see where you stand and get actionable insights on how to improve it.
  • A well-thought-out business plan -  A business pitch is one thing, but a detailed business plan is another. A solid business plan can demonstrate to a lender that you have a path forward. Plus, they’ll likely ask for this during the application process - especially for a $500,000 business loan.
  • Minimum time in business and revenue - Lenders may require your business to be operational for a certain period and generate a minimum annual revenue. This can vary from lender to lender, but most require at least one or two years in business before approving you for a business loan. 
  • Collateral for secured loans - If you plan to apply for a secured loan, you’ll have to offer up some collateral to secure a $500,000 business loan. Whether it’s real estate, equipment, or other valuable assets, be prepared to provide documentation of your collateral's value. 

If you want to review your offers and see what kind of business loans you qualify for, mySMBscore can help. With actionable insights on how to improve your business credit score, you can see multiple offers in one place from a national network of lenders who are ready to work with you. 

What is the monthly payment on a $500,000 business loan?

There are many factors that influence the monthly payment for any loan such as the length of the loan and interest rate. Therefore, we can calculate the cost after making a few assumptions. In these examples, the interest rate is 7%. For a $500k business loan with a 3 year term at 7%, the monthly payment would be $15,438.55. For a 5 year term at 7% the payment would be $9,900.60. Finally, at 10 years and 7% interest the monthly payment would be $5,805.42.

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