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$60,000 Business Loans: How to Get a $60k Business Loan

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$60,000 Business Loans: How to Get a $60k Business Loan

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What could a $60,000 business loan do for your small business?

You're in the right spot if you start outlining precisely what you would do with $60,000 and how it would benefit your business. Researching and understanding what’s available is an essential first step. Beyond that, you’ll want to position yourself to be a qualified candidate. At mySMBscore, you can view your business credit score and report through the eyes of a lender. Together, we can help you prepare for a business loan and help you find the best offer. Keep reading to learn more about $60k small business loans.

How To Get a $60k Business Loan?

There is a step by step process to get a $60,000 business loan and it involves patience, planning, and preparation. Here are a few steps to follow to acquire a $60k loan:

  • Evaluate Your Needs: Determine exactly how much capital you need and what you will use it for. Having a clear business plan will help you articulate your needs to potential lenders. Answer the question of, “why do I need a $60k business loan and what will it be used for.”
  • Check Your Credit Score: Your personal and business credit history will heavily influence your ability to secure a loan. A higher credit score increases your chances of approval and better interest rates. If your credit score needs improvement, work on boosting it before applying.
  • Prepare a Business Plan: Create a comprehensive business plan that outlines your business, its goals, financial projections, and how the loan will be utilized. Lenders often require a detailed business plan to assess the viability of your business.
  • Explore $60k Lending Options: Research lending institutions, including banks, credit unions, online lenders, and alternative lenders. Each may have different requirements and interest rates. Consider both traditional and online lenders to find the best fit for your needs. It’s important to review your options before making a decision.
  • Gather Necessary Documentation: Be prepared to provide documents such as financial statements, tax returns, business licenses, and proof of collateral (if applicable). Lenders will use this information to evaluate your creditworthiness.
  • Consider Collateral: If you have valuable assets, such as real estate or equipment, be prepared to use them as collateral for the $60,000 loan. Having collateral can improve your chances of approval and may also result in a lower interest rate.
  • Submit loan applications to multiple lenders for the $60k business loan. Online lenders often have a streamlined application process, but be waryof high-interest rates. Traditional lenders may offer lower rates but may havea more rigorous application process.
  • Negotiate Terms: Once you receive offers, carefully review the terms, including interest rates, repayment schedules, and fees. Negotiate with lenders to secure the most favorable terms possible.
  • Review and Accept the Loan Offer: Read the loan agreement thoroughly. Ensure you understand all terms and conditions before accepting the loan. If necessary, consult with a financial advisor or legal expert.

How much money do you need for a $60k business loan?

From revenue requirements to down payments, you’ll need money to get money via a business loan. While there are business loans that don’t require a down payment - there are several that do. With no uniform down payment requirements for business loans, it can be hard to know what to expect. 

The most common types of business loans include SBA loans, commercial real estate loans, equipment financing, business lines of credit, and term loans

Here is a quick breakdown of some down payment requirements that lenders may enforce depending on the $60k business loan you are applying for. SBA 7(a) loan: 10%

  • SBA 504 loan: 10% to 20%
  • SBA Microloan: 0%
  • USDA Business & Industry loan: 20% to 25%
  • Conventional term loan: 20% to 30%
  • Online lender loan: 10% to 30%

It’s important also to that some business loans may require collateral in addition or as a substitute to a down payment. A lender can often require collateral to secure a loan. If, for any reason, you should happen to default on a business loan, the lender can keep your down payment and seize the collateral to help recoup any potential losses. 

Types of $60k Business Loans

  • Fast $60k Business Loans - Fund up to $20 million as soon as next day upon approval from Kapitus.
  • Short-Term $60k Business Loans - Credibly has terms as short as 3 months and funding up to $400k
  • Bad Credit $60k Business Loans - OnDeck is a great option for bad credit applicants and funding up to $250k

Can a start-up get approved for a $60,000 business loan?

Yes, although loan options may be limited for a start-up, plenty of financing options are still available. Start-ups have two main paths they can decide to take when seeking financing. 

First, there is the equity-based route. The equity-based route involves seeking financing through venture capitalists or angel investors in exchange for a company share. This can be a great way to raise funds, especially if you have a great business idea. However, it is also a way to slowly give up some control of your company. If you sell too much equity, there could be a day when you no longer have executive control over your business. 

Second, there is the non-equity-based route. Non-equity loans involve seeking financing through different types of business loans. Some common loans that start-ups seek when starting out include term loans backed with collateral, equipment loans, business lines of credit, and personal or home equity loans used for business purposes. There are advantages and disadvantages to each of these types of financing options. However, in each case, you will need a good personal credit score and a substantial income or monthly revenue demonstrating your ability to repay the loan. 

What is the monthly payment on a $60k business loan?

Regarding the monthly payments on a $60k business loan, three main factors dictate this significant number. 

The three main factors include the loan amount, the loan term length, and the interest rate. 

You can get an estimated monthly payment amount by taking the loan amount of $60,000, factoring in the APR, and dividing it by the total number of months in the loan term. However, this will not include any additional fees from late payments, early payoff penalties, or any other charges that a lender may tack onto your business loan. 

For example, let’s say you apply for a $60,000 business loan spread over 5 years with an APR of 6%. You can then do the math to determine that you will need to pay an estimated $1,159.97 a month for 60 months, and at the end of the loan term, you will have paid approximately $9,598.09 in interest. Understanding what you qualify for will help you learn what realistic monthly payments are for your situation. At mySMBscore, you can access personalized $60k business loan offers with no credit impact. 

What are the requirements for a $60k business loan?

If you're looking for a $60k business loan, different lenders and loan types will have different requirements for qualification. That being said, most lenders will share a few determining factors regardless of the loan type. These factors include

  • Minimum personal or business credit score
  • Good amount of business revenue
  • Some time in business
  • Low debt-to-income ratio
  • Low debt-service coverage ratio
  • Solid business plan. 

When it comes to the business plan, some businesses, especially start-ups, will need a very detailed plan to help sell their idea to a lender. The business plan also can demonstrate your business knowledge and experience and help gain the trust of a potential lender. Your business plans should include financial projections, how the funds will be used, an industry overview and outlook, and an analysis of the competition. Additionally, you will want to show a five-year forecast of anticipated cash flow, income, and expenses.  

Beyond business loan requirements and what you can control now, lenders will emphasize past history. To understand the elements that matter most and how you can improve your chances of qualifying, visit mySMBscore. 

How do I apply for a $60,000 business loan?

Before you get to the application process - you’ll need to prepare. The best first step is to check your SMB score. At mySMBscore, you can unlock actionable insights on better positioning yourself for a business loan. Next, gather documents that may be requested. These documents can also help ensure the information you submit while applying for a business loan is 100% accurate and provable. 

Here is a list of some of the most common documents lenders will need to determine your eligibility for a business loan.

  1. Bank statements
  2. Tax returns, both personal and business
  3. Any relevant licenses and permits
  4. Your EIN or tax identification number
  5. Balance sheet
  6. Commercial license
  7. Debt disclosure
  8. Legal contracts and/or agreements
  9. Proof of identity
  10. Proof of business ownership
  11. Business insurance plans
  12. Incorporation documents
  13. Business plan

Once you have all the documents that a lender may ask for, you can go ahead and start shopping around for a business loan. One of the best ways to shop for business loans is to prequalify. Once you prequalify for a business loan, you can ideally review multiple business loans offers from multiple lenders to determine which loan option is best for you and your company. As part of our mission to help businesses prosper, mySMBscore can also help business owners connect with lenders that want to earn their business. We truly make finding the right business loan faster and easier. 

How do I qualify for a $60,000 business loan?

There are a few main factors that lenders are going to consider when determining whether or not you can qualify for a $60k business loan. 

First, they will review your personal credit history and, if you have one, your business credit history. Each lender will have their own minimum credit score requirements that you must meet or surpass even to be considered for a business loan. 

Second, lenders will want to see you have a good amount of monthly revenue. If you are a start-up, they may look at your personal income to determine if you will be able to make the monthly payments on the loan. Also, they will look at all your current debts to ensure you can make all of your debt payments, including the payments on the new loan, on time and in full. 

Last, lenders will want to see that you have business experience and a solid business plan outlining how you plan to use the funds and what kind of revenue and expenses you expect over the next several years. 

With a business loan, there are several variables, but always put yourself in the lender's shoes. You’ll want to make sure you get your investment back. If you feel you would loan yourself money, you can probably find a lender that agrees. If you feel there’s significant risk in loaning yourself money, lenders will likely think the same. For access to a complete score breakdown that can help you identify areas of improvement, visit mySMBscore. Once you’ve addressed any necessary improvements, you can shop our lending network for a lower-cost business loan.

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