Published By Janet Gershen-Siegel at November 20th, 2018
There are several online lenders but only some of them will provide $1 million or more. Qualifications including annual revenue and time in business requirements can vary. So can personal credit score requirements. Here are the details about the best online lenders if you need $1 million or more.
We researched all of these lenders and asked about their programs, rates, terms, and features. We gave them every opportunity to add to and enhance our research.
Rates can rise and fall. So this is normal when it comes to financing. We suggest you investigate these lenders yourself to confirm our numbers before requesting funding.
Able Lending says that they offer “a new kind of loan”. This online lender offers SBA loans and debt refinancing.
For SBA Loans: Able Lending offers SBA 7 (a) loans. Depending upon size, the SBA offers loans through lenders, including Able. So size just means number of employees, amount of annual revenue, etc.
Able Lending’s loans cover fixed asset needs. So these can include capital for purchasing equipment, machinery, furniture, fixtures, supplies, material, and the like. Terms go up to 25 years. Loans are up to $5,000,000. Note: the SBA defines the terms.
Rates can be fixed or variable. There are no fees for their loans of up to $150,000. Rates are 3.5% of the guaranteed portion. So this is for up to $1 million for loans from $750,001 to $1 million. And it is 3.75% for loans above $1 million. Debt refinancing rates start at 8%.
The advantages are that fees cap at 3.75% for loans over $1,000,000. In a way, the disadvantages are that these are SBA loans.
Therefore, if your company can’t qualify for an SBA loan, you should not be looking at Able for financing.
Bond Street offers term loans of $10,000 to $1 million. Their terms are up to 1 to 3 years. Bond Street will ask for both an EIN and the borrower’s SSN.
Offer arrives within 3 days. Bond Street will only do a soft credit pull. 640 or better credit score is most likely to get a loan but Bond Street will look at other factors.
There is a 2 years’ time in business requirement. Required annual revenue is of at least $200,000.
Their rates start at 6% and go up to 22%. The APR works out to 8 to 25%. There is a 3 to 5 % origination fee.
The advantages are the soft credit pull. Plus Bond Street will look at factors beyond your personal credit if your FICO score is low.
Bond Street can offer very large loans if you qualify. But the disadvantages are the longer time in business requirement. And the maximum APR is very high.
Fundera is a company that provides term loans, business lines of credit, and invoice financing. But be aware that their term loans only go up to $500,000.
For their business lines of credit: they require 6 or more months’ time in business. A company must have $50,000 or more in annual revenue.
$10,000 to over $1 million in funding is available. 6 months to 5 years terms. Approval comes in as little as one day. There are 7 to 25% interest rates. These lines of credit may require collateral. There are higher rates for lower credit scores.
For their invoice financing: they require 6 or more months’ time in business. A company must have $50,000 or more annual revenue. Maximum advance is equivalent to 50 to 90% total amount of invoice.
Approval is in as little as 1 day. When the customer pays, you receive the remaining 10 to 50% minus fees. Fees are generally 3% plus a percentage per week outstanding. Fees are based on the time it takes for customer to pay off the invoice.
The advantages include flexible options. There is a fairly low annual revenue requirement. Bu the disadvantages include your fees are based on how fast your customer pays to deadbeat customers will cost you.
Lendio offers business lines of credit and term loans. Note: business lines of credit only go up to $500,000.
For their longer term loans: loan amounts are $5,000 to 2 million. And loan terms are 1 to 5 Years. Payment Frequency can be weekly, bi-monthly, or monthly. Your time to Funds is 1 day to 4 weeks.
Rates are 6% to 30%. But short-term loans only go up to $500,000.
The advantages include flexible payment frequencies and several loan options. But the disadvantages are that it is a fairly long time before you can get your funds. Other players in the online lending space are a lot faster.
Pearl Financing is not to be confused with Pearl Capital Business Funding LLC. The entity known as Pearl Financing provides various loans and forms of financing to businesses.
Pearl Financing offers Small Business Working Capital. This offering includes SBA loans and MCAs. A company must be a retail business with less than $6 million in sales. Or it can be a manufacturing company with fewer than 500 workers. Another option is to be a service business with fewer than 100 employees. There is no application fee.
Pearl also offers Asset Based Lending. This is working capital financing secured by accounts receivable and inventory. They have product offerings running from $250,000 to $50 million. Their advance rates on accounts receivable are up to 90%. And there are up to 75% advance rates on certain inventory finished goods or raw materials.
Pearl Financing also offers Unsecured Lines of Credit. Amount depends on business size, profitability, and owner’s personal credit.
There is a 10-minute prequalification process. Fees are 1 to 5% over prime for their large lines of credit. You get 0% introductory rates on business credit cards. There are also credit checks for less than $45.
The advantages include the very high loan amounts available. And another advantage is the 0% introductory rates for their business credit cards.
The disadvantage is mainly that the company could stand to distinguish themselves better from a similar company with a nearly identical name. This is because borrowers could easily end up on the wrong site.
We researched Rapid Advance and asked about their programs, rates, terms, and features. And we gave Rapid Advance every opportunity to add to and enhance our research.
Rapid Advance is a company that offers standard, select, and preferred loans.
For their standard loans, $5,000 to $1 million is available. Terms range from 4 to 12 months.
Your company must have annual revenue of $120,000 or more. You must have a personal FICO Score of 580 or better. Minimum time in business is 2 years. There is a 1.16 to 1.30 factor rate.
For their select loans: $15,000 to $1 million is available. Terms are 6 to 15 months. You must have annual revenue of $240,000 or more. And you must have a personal FICO Score of 620 or better. The minimum time in business is 3 years. There is a 1.12 to 1.31 factor rate.
Preferred loans only go up to $200,000.
Minimum time in business is 6 years. You must have minimum bank balance of $10,000 or more. Borrowers must have at least 10 deposits from 5 different sources every month. There is a 1.11 to 1.25 factor rate.
The advantages are a few choices for loan types. Maximum amounts available are high. But the disadvantages are that the minimum bank balance requirements are fairly high. And annual revenue requirements are also high.
Getting $1 million or more in funding is not easy. Here are some pros and cons.
A company can get the most money from Pearl Financing, with up to $50 million in asset-based lending.
Able Lending has SBA loans going up to $5 million. Lendio offers loans of up to $2 million. And all of the other players only offer up to $1 million.
Bond Street is a company’s best bet if the borrower has a low FICO score. In fact, the only lender which even mentions personal credit scores is Rapid Advance. Their standard loan can work for a borrower with a FICO of 580 or better.
A company will get money most rapidly from Pearl Financing, with its 10 minute pre-qualification process. Fundera will take one day. Fundera also has the lowest annual revenue requirement: $50,000. And they also have the shortest time in business requirement, at 6 months.
As with all funding sources, make sure to read the fine print carefully. Your own individual requirements and needs are most important when determining where to get business funding.