Where Can I Get a $100,000 Business Loan?

It’s not uncommon for many banks and credit unions to turn away younger businesses, startups, or companies that have experienced fluctuations in revenue. Credit scores are also incredibly important when working with these types of lenders. Strict requirements are one of the reasons why securing financing from a bank or credit union can be a challenge.

Oftentimes, banks and credit unions will also want to see collateral or a personal guarantee in exchange for business financing. However, since $100,000 is on the lower end of funding amounts, they may be willing to make an exception if you have good credit and other strong financial criteria.

If you’re looking for more flexible financing solutions, you’ll be better off working with online lenders. Online lenders offer a wide range of financing solutions for all types of businesses and tend to be more accepting of applications with shorter business histories, lower credit scores, and so on.

Plus, online lenders work fast, sometimes in as little as 24 hours, to get you your funds. Many businesses that don’t want to wait weeks or months for bank loans to process opt for online lenders instead.

The amount you’ll pay for a $100,000 business loan depends on your credit score, the type of lender, the length of the loan term, the type of loan, and other factors.

That said, most business loans feature APRs between 7% to 15%. SBA loans are known for having some of the lowest interest rates, which can be about 6%.

Banks and credit unions typically offer the lowest rates – but it’s also more difficult to obtain financing with these lenders. Online lenders are generally on the high end, but they’re much more efficient and flexible than traditional lenders.

Certain loan products, especially short-term business financing options like merchant cash advances and invoice financing, are known for having higher rates than SBA loans or term loans.

Repayment periods also play a role in the final cost. In general, loans with shorter terms feature higher monthly payments but tend to charge less in interest over the long haul. Loans with longer repayment periods have lower monthly payments. However, they’re also more expensive over time.

There are multiple different business loans to choose from. Each loan type features distinct interest rates and terms. Some options may also be better suited for certain types of expenses over others.

Business Term Loan

When most people think of business loans, they’re picturing term loans. Business term loans feature a single, lump sum of capital with regular installment payments. Term loans have fixed interest rates, predictable monthly payments, and are best for one-off expenses or when you know exactly how much money you’ll need.

Term loans are popular financing solutions for real estate purchases, equipment financing, debt refinancing, and more.

Business Line of Credit

Business lines of credit work similarly to credit cards, although with higher funding amounts and lower rates. Lines of credit offer access to a reservoir of cash you can withdraw from as needs arise. You’ll never have to pay interest on the funds you don’t use. This makes lines of credit a flexible form of financing ideal for businesses that don’t know the exact funding amount they’ll need.

Business lines of credit also allow you to use your approved funds however you see fit. You can use a business line of credit as an emergency fund or finance operational expenses, ongoing purchases, unexpected costs, and new growth ventures.

SBA 7(a) Loan

Small Business Administration (SBA) loans are a popular choice among business owners because they feature low-interest rates, long repayment terms, and allow you to fund a wide variety of business expenses.

Even though SBA loans feature many benefits, they also have strict eligibility requirements that can make them difficult to qualify for.

Invoice Financing

Invoice financing is a great choice if your business is strapped for cash because of unpaid invoices. This type of financing allows you to exchange your outstanding invoices for financing. These loans feature some of the highest approval rates and also work incredibly fast.

The downside is that invoice financing typically features higher fees than other types of business loans. It’s typically unheard of to receive the full value of your unpaid invoices.

Equipment Financing

If you need new equipment, machinery, or you’re looking to upgrade existing materials, equipment financing can help. Equipment financing allows you to purchase the equipment you need to run your business. Typically, your purchase will be used as collateral, which can help keep interest rates fairly low.

If you’re looking to purchase equipment for your startup, know that National offers equipment financing solutions without a minimum business history requirement.

If you’re considering taking your business to new heights, you’ll need capital to help you reach your goals. National can connect you with multiple different business financing opportunities and help you find the best solution.

Our team of financing experts can help you find $100,000 business loans based on your specific needs and qualifications. We’ll guide you through each step of the process and help you select the best fit.

Instead of boxing you into rigid requirements, our network of over 75 different lenders emphasize your business’s growth potential. The best part? Our funding solutions are flexible and work fast – in as little as 24 hours.

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