Whether you’re looking to expand operations or take on a new direction entirely, a $1 million small business loan can help you jumpstart your next phase of growth. But before you can access funds, you’ll have to go through the application process.

Your likelihood of obtaining a $1 million business loan depends on the lender and your own financial criteria. Banks and credit unions tend to have rigid requirements. Online lenders, or fintech lenders, tend to be more lenient.

If you’re working with a bank or credit union, at a minimum, you’ll have to provide the following.

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Business credit score (700 or more)

Bank statements (going back at least one year)

Business history (at least 3 years)


Profit margin

Personal credit score (700 or more)

Business plan (including information on your industry, competitors, growth strategy, etc.)

Cash flow

Entity type

Revenue levels

Banks and credit unions impose these strict requirements because they want to minimize risk. They want to know that your business is financially capable of managing payments and that your industry is positioned for growth.

Lenders also want to protect themselves in the event of a crisis – which is why many will insist on collateral. Collateral can be any asset you own that is of value. It goes towards securing a loan, and ensuring the lender receives financial protection in case borrowers are unable to make payments.

1 Million Small Business Loan Qualifications

1 Year in Business

Even as a young growing business, you can still find credit line options

$12 Million in annual revenue

To qualify, your business must be generating a minimum of $1,000,000 in monthly revenue

No minimum credit score

We have financing options for business with excellent and bad credit.

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Businesses looking for more flexible financing solutions should consider online lenders or fintech lenders. These lenders maintain a larger selection of financing products for all types of businesses. They also have options for candidates with lower credit scores and shorter business history.

Plus, online lenders work fast. The application and approval process takes hours, whereas banks and credit unions can take weeks.

How Much Will a $1 Million Small Business Loan Cost?

How much you’ll pay in interest and fees on your $1 million business loan depends on several factors, including your credit score, the type of lender, the length of the loan term, the type of loan, and more.

How You Can Get a 1 Million Small Business Loan?
How You Can Get a 1 Million Small Business Loan?

Interest rates vary depending on your business’ unique criteria. Applications with solid credit scores, strong revenue, and collateral are more likely to be approved for lower rates. Applicants with less impressive financial criteria may also qualify for funding, but will probably have to contend with higher costs.

Banks and credit unions tend to offer lower rates than online lenders. However, they also make it more difficult to obtain financing. Certain loan products, such as term loans or SBA loans, are generally less expensive than lines of credit.

Loans with shorter repayment periods come with higher monthly payments, but tend to charge less in overall interest. Long-term loans have lower monthly payments, but interest over the entire duration of the loan tends to be more expensive.

On average, most lenders offer interest rates between 6% to 12%. SBA 7(a) loans generally feature the lowest rates, at about 6%.

Understanding The Loan Application Process

National’s simplified small business loan application process removes the usual pain and frustration, while giving you more option to choose from


Complete our digital application in a few clicks!


Consult with a knowledgeable Business Finance Adviser & get matched to 1 or more of the right lenders from our 75+ marketplace.


Receive financing in as little as a few hours, and get back to growing your business!

5 Types of $1 Million Business Loans

There are a variety of $1 million business loans to choose from. Each lending product features different interest rates, repayment schedules, and more. Some loan types may be better suited for specific situations.

Business Term Loan

Business term loans provide a single, lump sum of capital you’ll pay back in regular installments over a set time frame. Timeframes can range from 5 years and up to 25 years for a $1 million funding amount. Term loans come with fixed interest rates and predictable monthly payments.

Term loans are ideal for one-off investments where you know exactly how much money you’ll need. Many businesses use term loans for real estate purchases, equipment financing, debt refinancing, and more.

Business Line of Credit

A business line of credit is a type of business loan that works similarly to a credit card – albeit with lower fees and higher funding amounts. Borrowers access to a pool of funds which they can withdraw from – up until their credit limit – as needed. 

With a $1 million credit line, you’ll have the option to use all of the funds or just a smaller portion. You won’t have to pay interest on the funds you don’t use. Many businesses opt for lines of credit when they value flexibility or don’t know the exact funding amount they’ll need.

Business lines of credit can be used to finance operational expenses, ongoing purchases, unexpected costs, or new growth initiatives. Some businesses will even use them as an emergency fund.

Business lines of credit typically feature fixed interest rates and don’t have a set payment schedule. Depending on your lender, you may have the option of fixed installments or monthly minimums.

SBA 7(a) Loan

The Small Business Administration (SBA) offers loans up to $5 million. These loans are partially government-backed. Meaning the government agrees to cover a portion of the loan amount in case you default. Lenders appreciate this additional security, and offer lower interest rates as a result.

Unfortunately, SBA loans can also be very difficult to obtain. The SBA maintains strict eligibility requirements.

Invoice Financing

Also called accounts receivable financing, invoice financing allows business owners to exchange unpaid invoices for cash. Funding is usually fast and easy. Credit score, business history, and other factors tend to weigh less for invoice financing. 

Fees associated with invoice financing can be high, and it’s unlikely you’ll receive 100% of the value of your unpaid invoices.

Merchant Cash Advance

Merchant cash advances are a popular financing solution for retailers. They grant borrowers a lump sum amount of capital, and allow retailers to pay back the loan as a percentage of future sales. Merchant cash advances can be helpful during seasonal sales drops or cash flow disruptions.

Compare $1 Million Loans

If you’re considering taking out a $1 million loan for your small business, make sure to use National Business Capital. National Business Capital is a fintech marketplace that connects businesses with financing opportunities.

Our database contains over 75 different lenders, each with tailored financing solutions suited to your needs. You can explore various different types of loan products and receive expert advice at every step of the way. Our team of Business Financing Advisors empower you to select the best financing solution for your business.

If you need a larger funding amount, say a $2 million loan, know that only a handful of lenders in the U.S. can secure that type of funding amount without real estate collateral – and we work with those lenders.

Our lenders consider all aspects of your business when reviewing your application. We emphasize your potential for growth – rather than lock you into tight qualifications. Plus, our funding solutions work fast – in as little as 24 hours.

Learn more by filling out this 60-second application!