Cash reserves are of uttermost importance for every business, but having a substantial amount is a challenge for many companies nationwide – according to studies, 44% of US small businesses have less than 3 months’ worth of cash.

This poses a huge risk when it comes to financial stability – cash reserves provide a buffer to cover unexpected expenses or financial downturns, ensuring that you can continue operations without immediate financial distress.

They also allow for more effective risk management – with adequate cash on hand; you can handle emergencies, such as equipment failures or sudden market downturns.

However, having enough cash doesn’t only come down to emergency funds and risk mitigation. It also provides greater operational flexibility, allowing you to seize growth opportunities quickly, from investing in business ventures to entering new markets or purchasing inventory at a discount.

Considering that most businesses lack enough cash reserves to handle unexpected challenges or capitalize on investment opportunities, a $850k business loan may be exactly what you need to access additional funding.

That’s why we have prepared this comprehensive guide to take you through all the steps you’ll need to take if you are looking for an $850k loan. Continue reading:

Securing an $850k Business Loan with the Right Lender

If you are looking to secure an $850k business loan, you may feel like it’s a daunting and complex process that could be stopping you from moving forward.

In reality, it can be simple, fast, and straightforward – as long as you are working with the right lender. With National Business Capital, you can get expert guidance at each step of the application process and upload your documents within minutes and with zero risk.

What Can I Use an $850k Business Loan For?

As we mentioned earlier, you can use an $850k business loan for a variety of purposes, from improving your operational efficiency to capitalizing on new growth opportunities. Let’s take a look at some of the most common uses for an $850k loan:

  • Business Expansion – a large business loan can provide you with the funding you need to open new locations, expand into new markets, and increase production capacity.
  • Working Capital – it is also an excellent financial tool to improve your cash flow management and smooth out fluctuations, as well as cover daily operational costs, including payroll, rent, and utilities.
  • Refinancing Debt – if you have multiple loans, you can use an $850k business loan to consolidate them into a single loan with a potentially lower interest rate and better terms, thus effectively refinancing debt.
  • Research & Development – an $850k loan also gives you the opportunity to invest in R&D activities, innovating and improving products or services. This is particularly important in technology and manufacturing sectors.
  • Real Estate Purchases – another common use of a large business loan is acquiring commercial property for offices, manufacturing, or retail spaces – which can serve as an asset and potentially appreciate in value.
  • Emergency Funds – as we mentioned at the beginning of the article, an $850k business loan is a great way to manage unexpected financial challenges that require a timely response.
  • Equipment Purchasing—manufacturing or technology equipment can be expensive, and that is where an $850k loan comes in handy. You can use the loan to purchase equipment to enhance productivity and expand business capabilities.

Of course, these are not the only use cases for an $850k loan. From using it to buying inventory in bulk (essential for seasonal sales cycles) to marketing & advertising, it gives you the financial flexibility you need to take on new projects effortlessly.

How Long Will It Take to Get Approved For an $850k Loan?

So, exactly how long does it take to get approved for an $850k business loan? The exact answer will vary on different factors, including:

  • Type of lender – traditional or alternative
  • Size and type of the loan
  • Your creditworthiness as a borrower
  • Your application’s completeness
  • Due diligence and risk assessment

For traditional banks, the process could take several weeks to a few months. That’s because they generally have longer processing times due to more rigorous approval procedures, whereas online lenders might offer faster approval due to streamlined processes.

For online lenders, it could be as fast as a few days to a week, giving you more flexibility and peace of mind regarding your $850k loan.

What Are The Different Types of $850K Business Loan Options That I Can Apply For?

Another factor that you will need to consider when applying for an $850k business loan is that there are different types of loans that you can opt for. The most common ones include:

Business Term Loans

Business term loans provide a lump sum of capital repaid over a set period with fixed or variable interest rates. They often have terms from 1 to 5 years and require regular monthly or quarterly payments. These loans are used for investments like equipment or expansion and may require collateral.

Equipment Financing

Equipment financing is a type of loan used to purchase business equipment. The equipment itself typically serves as collateral, minimizing the risk of the lender against defaulting. Terms can vary but often match the expected life of the equipment.

This type of financing is ideal if you want to update or expand your operational capabilities without a large upfront investment, allowing you to preserve cash flow.

Business Line of Credit

A business line of credit is a flexible, revolving loan that allows you to borrow up to a preset limit and pay interest only on the amount used. It’s ideal for managing cash flow, covering unexpected expenses, or funding short-term needs.

Credit limits are often between $10,000 and $1 million, with variable interest rates. Funds can be drawn and repaid repeatedly.

SBA Loans

SBA loans are government-backed loans designed to provide funding for small businesses. Offered through partner lenders such as NBC, they feature lower down payments, longer repayment terms, and easier qualification criteria than conventional loans.

Types include 7(a) for general purposes, 504 for real estate, and microloans for startups. They often require personal guarantees, are capped at $5 million, and have competitive interest rates.

Revenue-Based Financing

Revenue-based financing is a financing tool that allows you to repay a loan as a percentage of your monthly revenue, adjusting payments based on income fluctuations.

This is ideal if you have variable sales, as it minimizes repayment burdens during slower periods. Loan amounts and repayment percentages vary, typically between 3% and 10% of monthly revenues. No collateral is usually required, making it accessible for growth-focused businesses.

How Do $850k Loan Requirements Differ Between Banks And Alternative Lenders?

When it comes to applying for an $850k business loan, it is important to keep in mind that traditional lenders – such as banks, usually don’t have the same eligibility requirements as alternative lenders.

Banks usually have stricter criteria – let’s take a look:

Bank requirements for an $850k business loan

  • High Credit Score – banks typically require a high credit score in order to approve you for an $850k loan – ideally, above 680.
  • Documentation – be prepared to show comprehensive financial and legal documentation, from bank statements to business licenses.
  • Articles of Incorporation – your business should be legally registered as an S-Corporation, C-Corporation, or LLC – before the loan application.
  • Business Plan – in addition to your regular documentation, you will also have to provide a detailed business plan, including the scope of the project.
  • Collateral – if you are looking to get a secured business loan, you will have to provide a collateral to guarantee against potential defaulting.

Non-bank lender requirements for an $850k business loan

  • No minimum credit score requirement
  • Operate for 6+ months
  • Annual revenue of at least $500k in annual sales

Lenders like National Business Capital prioritize the future potential of your business over its past performance, allowing you to qualify for financing even with an imperfect credit history.

This approach is particularly beneficial for growing companies that may not have a long track record but show strong potential for future growth. By evaluating factors such as projected revenues, market opportunities, and business plans, these lenders offer flexible financing solutions that are tailored to support your business’s expansion and innovation goals.

As a result, obtaining necessary capital becomes more accessible, enabling you to invest in new projects, enhance your operations, or streamline cash flow management despite previous financial challenges.

How do I Get Approved For An $850K Business Loan?

So, how do you get approved for an $850k business loan? Here are a few things that you can do to increase your chances of approval:

  • Work on improving your credit score
  • Prepare all your financial documentation
  • Provide your recent tax returns
  • Develop a strong business plan
  • Show sufficient revenue and cash flow
  • Be transparent throughout the process
  • Maintain a good communication with the lender

Can You Get an $850k Business Loan with a Bad Credit Score?

Yes, it is possible to get an $850k business loan with a bad credit score if you are applying for a loan with an alternative lender. Since banks have a lot more stringent criteria, they will likely reject you if your credit score is 680 or less.

To get a business loan with a less-than-perfect credit score, you may need to provide strong business financials, substantial collateral, or a personal guarantee. Also, improving aspects of your credit or finding a creditworthy cosigner could enhance your eligibility.

Government-backed loans, like those from the Small Business Administration, might offer more favorable terms for those with imperfect credit.

Applying for an $850,000 Business Loan with National Business Capital

Applying for an $850k business loan is just one fast application away from getting you the extra funding you need. Here’s what you can expect if you apply for a $750k business loan with National Business Capital:

  • Fast & Secure Application – we have developed a quick, easy, and streamlined application process that you can complete in minutes and upload your business documents safely.
  • Evaluate Your Offers – once your application has been submitted, you will receive multiple loan options, which you can evaluate with guidance from our expert Business Finance Advisors, who will help you choose the right option.
  • Get Funds – once you have secured financing, you can leverage your newly obtained funds to “Grow Your Business to Greatness.”

For the fastest access to an $850,000 business loan with minimal paperwork and optimal terms, contact National Business Capital at (877) 482-3008 or submit our online application today.

Are you ready to get started? Apply here.

Frequently Asked Questions

What are the requirements for an $850k business loan?

To qualify for an $850k business loan, you typically need a strong credit score (680+), substantial annual revenue ($1M+), and several years in business. However, requirements are less stringent if you are applying with an alternative lender.

Lenders require detailed financial records, a solid business plan, and often collateral. The specific requirements can vary by lender and loan type, including traditional banks, online lenders, and SBA-backed loans.

What credit score is required to qualify for an $850k business loan?

To qualify for an $850k business loan, a credit score of at least 680 is typically required by traditional lenders such as banks. Higher scores above 700 are preferred as they indicate lower risk and can secure better interest rates and loan terms. Both personal and business credit histories are evaluated.

However, if you are applying for an $850k business loan with an alternative lender, you may be able to get a loan with a less-than-perfect credit score.

Are there any restrictions on how I can use the loan funds?

Restrictions on using loan funds depend on the type of loan and the lender’s policies. Generally, funds must be used for business-related expenses such as expansion, equipment, inventory, or refinancing debt. Specific loans, like SBA loans, may have stricter usage guidelines.

What happens if I default on the $850k loan?

If you default on an $850k loan, the lender may initiate collection efforts, report the default to credit bureaus, seize collateral, or pursue legal action. This can damage your credit score and business reputation, making future borrowing more difficult and expensive.

What is the difference between a secured and unsecured $850k loan?

A secured $850k loan requires collateral, such as real estate or equipment, which the lender can seize if you default. This typically results in lower interest rates. An unsecured loan doesn’t require collateral but usually has higher interest rates and stricter credit requirements due to the increased risk to the lender.

Disclaimer: The information and insights in this article are provided for informational purposes only, and do not constitute financial, legal, tax, business or personal advice from National Business Capital and the author. Do not 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 on this information it is at your own risk. The information is true and accurate to the best of our knowledge, but there may be errors, omissions, or mistakes.

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About the Author

Phil Fernandes

Phil Fernandes serves as Chief Operating Officer for National Business Capital. He boasts 15 years of experience in sales and 10+ years of management experience as National’s VP of Financing/Analytics. Phil is also an excellent writer who's completed the Applied Business Analytics executive program at MIT and regularly contributes articles to National Business Capital’s blog.

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