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How To Get A $100K Business Loan

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This post was last updated on August 11, 2021

A $100,000 business loan can be all that it takes to launch your small business to the next level. With extra working capital, you can take the next step forward in growing your business, instead of letting cash flow hold you back. It could mean the difference between staying where you are and the growth you’ve been striving toward.

These funds can be used to purchase new company equipment, pay off outstanding bills, or cover working capital costs. Ultimately, you can put funding toward anything you need to grow.

But if you’re new to the business financing world, learning how to get a $100K business loan can seem complicated. Fortunately, the process is actually quite simple—depending on the lender you work with.

How To Get A $100K Business Loan

How To Get A $100K Business Loan

Qualifying for the funding you need doesn’t have to be a difficult or time-consuming process. In fact, the process of applying for a $100,000 business loan is similar in nature to most business loan applications. 

However, because the amount of the loan is significantly larger than smaller loans of only a few thousand dollars, the qualifications can be slightly higher than for smaller loans, of only a few thousand dollars. Regardless, you can qualify for a $100K loan even without a sky-high credit score or collateral.

Depending on your needs and situation, there are various ways you can apply for a $100,00 business loan. Two of the most common methods of getting a six-figure business loan are applying through a bank and consulting an alternative lender. 

While the deposit you’ll receive in your account might be the same, the process, documentation and turnaround time can vary. Banks tend to have a stricter application process, while alternative lenders are more lenient in terms of loan qualifications and requirements.

Looking for a 5 million business loan?

Understanding the Qualifications

To qualify through an alternative lender like National, you generally only need to meet a few basic requirements:

  • $120K in annual sales
  • 6 months in business
  • No minimum credit score

Even if you’ve hurt your credit score as you grew, most lenders will still consider you for financing. Instead of your history, online lenders are more concerned with the opportunity ahead, and how financing could change the game.

While various lenders have different procedures, you can usually expect a fast, simple and easy process. After applying, you can normally skip the documentation by instead connecting your bank accounts digitally. This saves the time and effort of compiling paperwork about your business.

While getting a $100K business loan might be easy, remember that it’s not the limit. At National, you can speak with a Business Financing Advisor who can inform you about other, potentially larger options.

$100,000 Business Loan Requirements from a Traditional Lender

Unlike alternative lenders, qualifying for a six figure business loan from a bank can be difficult and time-consuming.

In order to qualify for a $100,000 business loan, you must be able to prove your eligibility. For banks, this means providing a number of important documents. Some of these documents will be related to your finances, whereas other documents are regarding your business information, revenue history, and internal company operations, and more.

Here are five of the many requirements associated with getting a $100,000 business loan:

  1. High Credit Score: To get approved for a large loan, you will need high personal and business credit scores. In addition to a strong credit score, borrowers must also possess a history of submitting payments on time and several mixed sources of credit (auto, mortgage, credit cards, etc.). If you don’t have a credit score of 680 or higher, then you won’t qualify for bank financing, regardless of the amount you request.
  2. Financial & Legal Documents: Some of the financial and legal documents that you will need to show a potential lender include a copy of your driver’s license/ID, business licenses, balance sheets, and bank statements. Consult with potential lenders ahead of time to determine which documents you will need when it’s time to apply for your loan.
  3. Articles Of Incorporation: Before applying for a $100,000 loan, your business must be incorporated as an S-Corporation, an C-Corporation, or an LLC. In order to get approved, you must be registered as a for-profit business and bring proof of your incorporation. If you aren’t already registered, you will need to register for business incorporation prior to submitting a loan application. If you are in a rush and need to quickly incorporate your business, consider utilizing reliable business incorporation services.
  4. Detailed Business Plan: How are you planning to use a $100,000 loan to grow your business? Create a strong business model which outlines your goals, plans, and other information regarding your company’s income history and how long your business has been in existence.
  5. Collateral: Whether or not you are willing to secure your loan with collateral, like real estate or equipment, may determine if you’re accepted or rejected by a lender. Secured business loans require collateral as a form of security deposit. Unsecured business loans do not require collateral but may require you to sign a personal guarantee to ensure you will pay back the loan.

Apply for a Small Business Loan

How To Get A $100K Business Loan With Bad Credit

Often, the most important factor of whether or not you qualify for a business loan is your credit score. If you have a score higher than 680, then you meet the minimum to be approved for a larger small business loan at a bank, depending on other requirements. But even if your score falls below FICO’s “poor credit score” mark of 580, you can find viable financing options elsewhere.

Many online lenders, like National, look past your credit score and instead focus on the opportunity ahead. Even if you’re applying for a $100,000 business loan, your challenged credit score won’t make or break your application.

As long as you meet the minimum sales requirements, you can find options. Often, these options will also allow you to qualify at a much faster rate, helping you take the steps you need within a shorter timeframe. Depending on your unique situation, you can also review multiple options with various loan terms.

Apply For A $100,000 Business Loan With National Today

If your business is growing, then why wait to get the cash you need?

To get a $100,000 business loan in the shortest amount of time with limited paperwork, and the best terms as quickly as possible, call National Business Capital at (877) 482-3008. Or, fill out our 60-second online form.

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Last Updated on January 21, 2021

National Business Capital is the #1 FinTech marketplace offering small business loans and services. Harnessing the power of smart technology and even smarter people, we’ve streamlined the approval process to secure over $1 billion in financing for small business owners to date.

Our expert Business Financing Advisors work within our 75+ Lender Marketplace in real time to give you easy access to the best low-interest SBA loans, short and long-term loans and business lines of credit, as well as a full suite of revenue-driving business services.

We strengthen local communities one small business loan at a time. For every deal we fund, we donate 10 meals to Feeding America!

About the Author, Joe Camberato

Joseph Camberato, CEO of National Business Capital, developed a passion for business at a young age. Joe started his company in 2007 in his spare bedroom and has grown to secure over $1 Billion dollars in financing for small business owners nationwide. National’s team has an amazing culture and has been name the #1 Top Workplace on Long Island 3 years in a row and counting. Joe is a trusted financial expert who’s published more than 2,000 articles in the last 3 years. His articles have generated over 5 million page views and has been featured on blogs such as Google News, Yahoo, CNBC, Forbes Magazine, etc. His passion has also inspired him to build the "GrowByJoe” YouTube channel where he shares his insights into small business trends and tips for growth. Joe also holds a seat on Forbes Finance Council and is an active member of the Young Presidents' Organization (YPO), a global leadership community.

https://www.linkedin.com/in/growbyjoe/

https://twitter.com/growbyjoe

https://www.instagram.com/GrowByJoe/

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Disclaimer: The information and insights in this article are provided for informational purposes only, and do not constitute financial, legal, tax, business or personal advise from National Business Capital and the author. Do no rely on this information as advice and please consult with your financial advisor, accountant and/or attorney before making any decisions. If you rely solely in this information it is at your own risk. The information is true and accurate to the best of our knowledge, but there maybe errors, omissions, or mistakes.