$7 million Business Loan in 2023
Can you get a 7 million dollar business loan to support your business, and what are the requirements? Here’s everything you need to know before starting the process.
Whether you’ve been in business for decades or have only operated for a few months, cash flow constraints can bring your growth to a screeching halt and hinder your ability to take advantage of new opportunities.
Business loans come in all shapes and sizes, with some formats being more flexible than others. You can secure any amount of money through a business loan – even 7 million – if your business’s financial information is robust enough. But, before you can secure the funds you need to grow, you’ll need to find the right lender to get a 7 million dollar loan for your business, one with financing options and terms that meet the specific needs of your business.
You could compare lenders one by one, or you can streamline your search for a 7 million dollar business loan with National Business Capital. We’ve shortened the process to mere days, not weeks or months, to give you the opportunity to secure fast financing and outpace your competition with ease. Complete our digital application to get started!
$7 Million Business Loan Qualifications
1 Year in Business
$500K in Annual Revenue
No Minimum Credit Score
What Are the Requirements for a 7 Million Dollar Business Loan?
The requirements for getting a 7 million dollar business loan will depend on the lender, but generally, you can expect to provide your personal financial statement, a business plan, your last 2-3 years of YTD financials and business tax returns, your cash flow statement, and other relevant documents. You should also be able to prove that your business is profitable.
If your business produces more than $7 million in revenue, then you’ll likely find it easier to reach an approval than an operation that doesn’t make as much, but that doesn’t mean it’s impossible to secure this amount of capital without this qualification.
The most important factor in securing a 7 million dollar business loan is the lender you’re dealing with. Every lender will have different eligibility criteria, and each will see your business differently based on the same financial information you provide.
You’ll need to speak with multiple lenders and compare their programs. Before you do, it’s important to have the necessary documentation readily available for the process. You should be prepared to provide:
- Business credit score (700 or more)
- Personal credit score (700 or more)
- Bank statements (going back at least one year)
- Business plan (including information on your industry, competitors, growth strategy, etc.)
- Business history (at least 3 years)
- Cash flow
- Collateral
- Entity type
- Profit margins
- Revenue levels
Some lenders may require you to offer an asset as collateral to “secure” the financing. This can be a tangible asset, like real estate or a valuable piece of equipment, or an intangible asset, like your accounts receivable, but it must be substantial enough for the lender to recoup their costs if you default on your payments.
Where Can I Get a $7 Million Business Loan?
If you’ve taken a hard stance against offering collateral, you don’t have to accept the first terms you receive. There are a variety of different lending institutions that can help you secure $7 million in capital, such as traditional lenders, online lenders, and angel investors.
Traditional Lenders
Traditional lenders, otherwise known as banks and credit unions, are most people’s first call when it comes to business financing. These institutions feature low interest rates and favorable terms, but their eligibility criteria are strict, and their underwriting process is lengthy. Entrepreneurs who need fast financing might not find what they need with a traditional lender, so they’ll turn to online lenders for increased flexibility.
Online Lenders
Online lenders are characterized by loose eligibility requirements, expedited underwriting processes, and increased interest rates. They’re essentially the opposite of traditional lenders, but their client-focused approach to business financing makes it easier for entrepreneurs to secure the capital they need to grow.
Angel Investors
Lastly, we have angel investors, which are most similar to the investors you see on the popular TV show Shark Tank. These individuals are highly wealthy investors who find businesses they think will improve in the future. They will, in turn, offer capital to these businesses as a form of investment, but this forces the business owner to lose equity in their operation. For example, if an angel investor gives you $7 million for a 50% stake in your company, then they now own 50% of your business.
Angel investors leverage equity financing, whereas online and traditional lenders use the debt financing route. In either situation, you shouldn’t just accept the first best offer. The only way to secure the best deal on a 7 million dollar business loan is to compare your options thoroughly and, most importantly, find the RIGHT lender for your circumstances.
Benefits of Acquiring a $7 Million Business Loan
Compared to sacrificing equity for $7 million in liquidity, debt financing is an advantageous way for entrepreneurs to grow, scale, and develop their businesses while maintaining complete ownership.
Here are a few notable benefits of taking a $7 million business loan.
- Instantly increased purchasing power
- Flexible structures to choose from
- Various financing types, with different benefits for specific situations
- Fast funding times
- Opportunity to inject liquidity without sacrificing ownership
- Potential tax advantages
- When paid in full, the business has no debt attached to its name
Your cash flow can only take you so far, and you don’t want to sacrifice a valuable portion of your growing company. Debt financing offers a way around this, with numerous benefits for the business.
How Much Will a 7 Million Dollar Business Loan Cost?
Exactly how much a 7 million dollar business loan will cost will depend on the lender, the financial information of your business, the type of loan, and other factors. However, you can typically expect an APR of between 7% and 15%, with a repayment term of up to 25 years.
The cost of your financing will depend on a number of factors, such as
- The lender you’re dealing with
- The financial information of your business
- The type of loan you’ve secured
- The length of your repayment terms
- How long you’ve operated in your industry
- The Fed’s current interest rates
Each financing option will have different interest rates, repayment terms, and other contingencies that will impact the overall cost of securing that loan. The lender you’re dealing with plays a significant role, too, as they usually have the final say on your interest rate and other fees.
Generally, the interest rate on a 7 million dollar business loan will vary between 7% and 15% APR, with repayment terms ranging from 7 to 25 years. However, all of this information will depend on the lender you’re doing business with.
Who Needs a $7 Million Business Loan?
Any business that meets the relevant eligibility criteria can get $7 million in business financing, but it’s important that you use your funding strategically. Here are a few examples of how other businesses have leveraged a loan of this size to drive growth.
- A manufacturing facility’s competitor is liquidating their company, so the facility takes out a $7 million loan to purchase their assets at a significant discount.
- A construction company is planning to start a new project. Instead of buying materials as they go and risking supply chain challenges, they use a $7 million business loan to purchase all the needed materials in bulk.
- When faced with a $7 million capital gap during an equity raise, a technology company uses a loan to bridge the gap and cover liabilities.
- A major retailer prepares for the holiday season by using a $7 million loan to purchase inventory in bulk, securing a bulk discount.
- A land development company takes a $7 million business loan to purchase property and plot out their neighborhood plans.
There are many other situations that can fall into the list above. Basically, if you have a $7 million need, you can leverage business financing to accomplish your goals without sacrificing equity.
How Can You Use a $7 Million Business Loan?
You can leverage a $7 million loan for almost any business opportunity. Here are a few of the most common.
- Expansions
- Renovations
- M&A transactions
- Technology investments
- Inventory and material orders
- Equipment purchases
- Buying out a business partner
- Bridging capital gaps
Whether you’re facing an opportunity or challenge, a $7 million business loan opens up the door for you to do more in your business. You don’t have to wait for profits to support your growth plan; Instead, you can grow on your schedule, making revenue-driving investments that will make your business a much stronger organization as a whole.
Different Types of 7 Million Dollar Business Loans
There are different types of 7 million dollar business loans that your company can seek, ranging from business term loans to business lines of credit, cash advances, and SBA loans. They will vary by interest rates and repayment terms, and some will require collateral.
| Type of Financing | Description |
| Business Term Loans | Term loans are what most people think of when they think of business financing—a one-time lump sum payment that you must repay within the term outlined by your lender.
You can use a term loan for almost any business expense, but you might need to offer a detailed plan on how you intend to use the borrowed amount to your lender before you reach an approval. Additionally, you might need to offer collateral to secure the financing, especially if your business has less than favorable financial information. Term loan interest rates range from 7% to 15% APR. Repayment terms vary from 7 to 25 years, but all of these factors will depend on the lender you’re dealing with. |
| Business Line of Credit | Business lines of credit are one of the most flexible financing options available to entrepreneurs. They’re a revolving line of credit that you can draw from whenever you need. You can even draw physical cash with a line of credit, which is the biggest difference between this financing option and a business credit card.
Your total credit line stands as the maximum amount you can borrow, but you’ll only have to pay interest on the amount you draw—not your total credit line. Most business lines of credit are revolving, too, and you can use it as a tool in your toolbox whenever you’re faced with a challenge in your business. Securing a $7 million line of credit is possible, but it isn’t easy. You may want to consider securing another type of financing and layering a business line of credit on top. For example, savvy entrepreneurs will secure term loans for a majority of the amount they need to borrow and add a business line of credit to help them handle their cash flow while they pay off the more sizable loan. The options are endless, especially if you’re committed to growing. |
| SBA 7(a) Loans | SBA loans are some of the most coveted financing options because of their low interest rates and increased borrowing limits. Through the SBA’s 7(a) and 504 programs, you can borrow up to $5 million with a single transaction, which allows entrepreneurs all over the country to secure the funds they need to grow.
Interest rates of SBA loans are some of the lowest on the market because of the government’s partial backing of the financing, but all the benefits come with one drawback—strict eligibility requirements. SBA loans are reserved for businesses that can display strong financial information and have a lengthy time in business, but you shouldn’t let that deter you from applying. |
| Revenue-Based Financing | Revenue-based financing isn’t a loan. It’s a financing option that’s essentially an advance on your future sales, otherwise referred to as a “business advance.”
Much like a term loan, the funds are provided in a one-time, lump-sum format, but the funds are repaid through small deductions from your daily sales instead of a formal repayment schedule. There’s no interest rate either; The cost of capital is your factor rate multiplied by your funding amount. Since your repayment schedule depends on your profitability, most lenders focus primarily on your annual revenue instead of your credit score. This allows a wider range of businesses to access growth capital. Still, you’ll need to generate more than $7 million in revenue to qualify for $7 million in revenue-based financing. |
| Invoice Factoring | A late customer payment can bring your production to a complete halt, but invoice factoring can right the ship by turning those late payments into cash today. Lenders will review the total value of all your outstanding invoices and offer you financing based on that amount.
Additionally, you should note that you’re only eligible to secure $7 million through invoice factoring if the total value of your outstanding invoices is well over $7 million. You won’t be able to collect the full value of your unpaid invoices, as the lender will take a portion of your invoices as payment for their service. |
Compare 7 Million Dollar Business Loan Options Through National Business Capital
A 7 million dollar business loan can take your business to the next level, but only if you can secure one with favorable terms that fit the needs of your business. This might seem like an easy task, but as you begin speaking with lenders and comparing their programs, you’ll find that it’s rather challenging. Applying to lenders individually will require you to take a lot of time away from your business to focus on your research, which is something that not many business owners can afford.
Don’t worry: There’s an easy option right in front of you—National Business Capital. Our team of expert Business Finance Advisors takes the time to learn about you, your business, and your circumstances to connect you with personalized, competitive financing solutions for the challenges you’re facing in your business.
Whether you need a 7 million dollar business loan for cash flow management, growth opportunities, or to afford a massive expansion of your business, you can trust that National Business Capital’s award-winning team can find you the RIGHT option for you.
Apply now to get started!
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How Do Business Loans Work?
Hear the information you’re searching for directly from the source—Joseph Camberato, CEO & Founder of National, on his channel, “Grow By Joe.”
FAQs
Can I Get a 7 Million Dollar Business Loan?
Yes! You can secure a $7 million business loan to support your business as it grows. A variety of lenders offer financing of this caliber, but you shouldn’t expect the process to be easy. You’ll need to have a solid credit history, an extended time in operation, and generate at least $10 million in revenue for most financing options, but you may be able to offer collateral and make qualifying easier.
How Long Do You Have to Pay a Business Loan Back?
On average, repayment terms range from 5 to 10 years for most business loans and from 6 to 25 years for SBA loans. However, your specific repayment should be tailored to your specific needs, especially if you’re seeking to borrow a substantial amount of capital.
Defaulting on a business loan can create a seriously constricting situation for you and your business, so make sure to plan out your repayment before you sign your name on the dotted line.
Can You Write Off a Business Loan?
Yes, you can write off the interest payments you make on a business loan. You can also strengthen your credit score by making consistent and timely payments, too, so make sure to keep track of your repayments over the course of your loan to ensure you’re able to write off every penny you can.
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