While you might be able to waltz into a bank and get a business loan for a few thousand dollars, when it comes to larger funding amounts like this, you’ll need to really prepare for the application and funding process.
Here are some steps to take to help improve your chances of getting a $1.5 million business loan:
The opportunity to borrow 1.5 million dollars to grow your business is exciting, but don’t let the excitement blind you. Choosing the right lending partner can influence future success.
Gain insight that can help your business qualify for a $1.5 million dollar business loan at mySMBscore!
Bad credit does not always stem from a lack of repayment. Bad credit can stem from too much debt too. As a business owner, cash flow can be tight which can arise the need to borrow money often. Therefore, the ability to qualify for business loans can help you access the working capital you need. While there are lines of credit that are revolving, you may not have the collateral to secure them - or perhaps they are just not the right solution.
Highlighting Kapitus and Kickfurther again, let’s take a look at their minimum credit score requirements:
If you have bad business credit, visit mySMBscore to unlock valuable insights that can help you qualify for a $1.5 million dollar business loan.
Business loans come in many forms, so it’s important to understand your needs before applying. While Kickfurther offers working capital for inventory, Kapitus offers a wide variety of loans. As mentioned above, Kickfurther is up to 30% cheaper than other options and Kapitus may have higher rates than traditional bank loans. It’s up to you to decide what’s most important for the success of your business in order to choose the right funding solution.
Kapitus offers a wide variety of business loans, including:
To put it simply, a $1,500,000 business is a large amount of funding given to a business by a bank or other financial institution. Businesses can use this money to help grow their business, finance new business ventures, cover large business expenses and more.
When it comes to interest rates, they can really vary across the board depending on your qualifications, the current market rates, repayment terms, your business’s financial health and more. A lender will want to look closely at your qualifications, like your credit history, business plan, and how profitable your business is.
Not sure where your credit score currently stands? mySMBscore is here to help give you insights into where your business credit score is currently and how you can improve it through actionable insights from a lender's perspective. That way, you can know exactly how you can improve your score and what you might be eligible for when you go to apply for loans.
Just like there is no one-size-fits-all interest rate, there is no general payment amount for a $1.5 million business loan. While it might seem straightforward, each loan is crafted with unique terms and conditions that make up the monthly payment. Things like your interest rate, the term length, and the type of loan (variable or fixed interest rate) can impact how much you have to pay on a monthly basis.
Here are a few examples of monthly payments on a $1.5 million business loan:
When you receive your business loan offers make sure to review the terms in detail, especially when acquiring a $1.5 million loan.
If you’re curious to explore what your monthly payments might be for a $1.5 million business loan, you can head to mySMBscore to see what kind of loan offers you might be eligible for and explore what monthly payments might look like.
While a $1.5 million business loan is a large amount for most businesses, it’s not uncommon for more established businesses or those with a thorough business plan! That’s why taking the time to compile your application thoughtfully and thoroughly can help show a lender that you’re ready to take on a loan of this size.
Besides a business plan, lenders will want to check your personal and business credit score to see how you’ve handled money or debts in the past. If your business credit score isn’t where you’d like it to be, you can head to our simple platform that can provide you with an instant business credit score, which gives you the best insight into your potential loan options.
Let’s be honest - $1.5 million is a large amount of money, even for established businesses. So, while it’s not impossible, you can expect a more stringent approval process. Lenders will want to feel confident that you can repay the money without any issues, and it will go to improving your business.
But if you go in with a strong application that’s been thoroughly prepared, you can definitely get a $1.5 million business loan! One way to know before applying if you can qualify is to check your offers on mySMBscore to see real offers from over 1,200 organizations.
When it comes to a loan of this size, you will have to put up collateral to secure the loan. What kind of collateral, you might ask? Well, it will depend on the lender’s requirements and how strong your finances are. From your equipment to real estate, lenders will need some sort of guarantee that they’ll recoup part of their money if something happens to your business.
If you’re unsure what kind of collateral would work best for you and your loan application, consider talking to a financial advisor to get professional insights on the loan process.
The more money you’re asking to borrow, the longer it might take to get your application approved. With larger funding amounts like $1.5 million, you can expect it to take anywhere from a few weeks to a few months. Ultimately, the length of time will vary by lender, and the best way to move it along fast is to make your initial application as thorough as possible.
Each lender or institution will have a different set of requirements for your application, but you can expect a mix of the following documents:
If there was a magic path to get approved for a $1,500,000 business loan, more businesses would do it! But unfortunately, you’ll need to prove that you’re not only worthy of borrowing this large amount but that you’ll use the money to benefit your business and help it become more profitable.
If you can’t qualify for a $1.5 million business loan, consider exploring some of these alternatives:
To qualify, you should take the time to get financially ready by improving your personal and business credit score as much as possible. You can get your free SMBscore, credit memo, and loan offers at mySMBscore.com and understand how much you might be able to qualify for!
Let's calculate the monthly payments using assumed loan terms and interest rates: The monthly payment on a $5 million business loan with an 8% interest rate and a 10-year term would be approximately $60,663.80. Here's another example: The monthly payment on a $5 million business loan with a 10% interest rate and a 5-year term would be approximately $106,235.22.
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