$100,000 Business Loans

While you may be hesitant to borrow money, and the hesitancy may stem from a variety of reasons, after some research you should feel more confident. If your biggest hesitation stems from concerns about ability to repay, a business loan may not be in the cards. Keep in mind though that no business owner is ever beaming with confidence as business ownership is full of taking calculated risks. Read on to learn everything you need to know about $100,000 business loans. 

How $100k business loans work

Some 100k business loans will require you to give up equity in your business, others will require collateral, some may require a down payment, and some may require only a credit worthy business owner. With so many different circumstances, you can see why this is a broad question. The specifics on how a business loan works depends on the type of loan. Small businesses often need to use alternative business loans through online lenders, which should work similarly. In most cases, online lenders offer short-term or term loans. The first step is typically applying for the loan to get prequalified. You can do this directly with the lender of your choice or you can take advantage of PrimeRates. PrimeRates is an online platform that allows you to check and compare offers from multiple lenders. Once you’ve found the loan offer you want to pursue, you may need to submit additional documentation to finalize the approval. Once the approval is finalized, you can receive funds as a lump sum that is to be repaid in monthly installments with interest. 

Can you get a $100k business loan?

As long as you qualify, you can get a $100,000 business loan. If you’ve just started your business and have little success to show, getting a $100k business loan may not be possible. However, if you’ve been in business a few years and can prove financial stability and growth, you are probably a good candidate for a $100k business loan. If you’re considering a $100k business loan you’ll need to find a lender that offers them and then see if you qualify. Below we will dive into some sources for $100k business loans. 

Common uses of $100k business loans

Business loans can be used for so many things. Before taking out a business loan you should know how you will spend the funds and what they will do for your company. If your company is starting to drown financially, an influx of cash may temporarily fix things, but it may also cause destruction later on. Here are some common uses of a $100k business loan.

• Purchase a new business
• Expand an existing business
• Working capital 
• Inventory
• Equipment
• Inventory management systems

Types of $100,000 business financing options

There are several options for securing business financing. Here’s a brief overview of some of the most common types of $100,000 business financing options. 

• Online business loans: With thousands of lenders just a click away, it’s no wonder online business loans are at the top of our list. Afterall, as a business owner, you’re especially pressed for time. Online business loans can offer perks such as faster funding times, less strict requirements, easy access to offers, and competitive terms. The most important thing to consider when transacting online is the safety of personal information. For this reason, it’s best to work through a platform such as PrimeRates that can connect business owners to a network of vetted and trusted lenders. 

• SBA Loans: The Small Business Administration (SBA) works with SBA-approved lenders to extend loans for small business owners. SBA loans are partially backed by the federal government, thus reducing the risk for the lender and allowing the business owner to access lower rates and larger loan amounts. The downside of SBA loans is they can take months to qualify for. And you know what they say - time is money.

• Line of Credit: For companies that need access to cash on a regular basis, a line of credit is ideal. A business line of credit works similarly to a credit card in the sense that it’s revolving and you only need to repay what you draw. A business line of credit is generally secured by an asset, which means there is some risk involved. 

• Term Loans: A traditional term loan can be obtained through a bank, credit union, or online lender. Term loans are typically funded as a lump sum and repaid in equal monthly installments with interest. Term loans for businesses should only be used for business expenses, but there are usually little to no restrictions. 

Which business loan option is right for you?

Now that we’ve reviewed some business loan options, you may be wondering which to pursue. For large loan amounts, an SBA loan is a highly demanded option, but it’s not a walk in the park to get one. Due to the complex approval process and long funding times, business owners often turn to alternative options. Online business loans are one of the best options for a fast business loan. Ultimately, the type of loan option that’s best will depend on your needs and what you qualify for. For example, if you can get a line of credit with a much lower interest rate than a term loan, then this may be the route you should go. 

Pros and cons of large sized business loans 

Large business loans can really give your business the boost it needs. However, they are also more costly. The more you need to repay, the more stress you place on yourself and your business. Aside from the potential risk, a $100,000 business loan can still be a valuable resource. Here are some general pros and cons of a large business loan.

PROS

• Accelerate business growth
• Improve cash flow
• Increase profits 
• Borrow money while maintaining equity in your business

CONS

• High monthly payments
• Interest and fees 
• Personal guarantee (credit may be impacted if you default)

Is it difficult getting a $100k business loan?

If you’re new to the business financing world, getting a $100k business loan can seem complicated. From trying to understand the ins and outs to losing sleep waiting for your approval email, there are a lot of moving parts associated with a business loan. If you’re well qualified, getting a $100k business loan should not be too difficult. However, if you’re barely qualified, it can be difficult. If you know business owners that may have been in a similar position at one point, ask them how they obtained a business loan. By reaching out to real resources, you can get pro tips that can help making securing a $100k business loan easier. 

What credit score do I need to qualify for a $100k business loan?

The larger the loan amount, the better the credit score you’ll need - amongst other factors too. Most lenders will consider time in business, credit score, revenue, ownership, and current debt levels when approving loans. While credit score is usually one of the biggest determinants, other factors are very important too. Lenders can create their own set of requirements, so just because you don’t qualify for one lender does not mean another lender is unwilling to approve your loan. In most cases, you should have a good credit score to qualify for a $100,000 business loan. A good FICO score falls between 670 to 739. 

What is the cost of a $100k business loan?

Business loans can be expensive, thus why business owners often become open to giving away equity in the company or borrowing against assets. Regardless of the cost, if you can benefit and profit from a business loan you should still pursue one. Maintaining ownership of your business is well worth the extra cost for most. The cost of a business loan can vary, but as you compare offers pay attention to total loan costs. This figure will help you see the total cost of the loan. For example, a $100,000 business loan at 8% interest for 12 years would cost about $48,087 in interest alone. 

Do I need to provide collateral to obtain a business loan?

You may be required to put up collateral to obtain a business loan, but it’s not always a requirement. Backing a loan with collateral can reduce the risk for the lender, thus allowing them to extend lower rates and more flexible terms to the borrower. 

What kind of interest can I expect to pay on a $100k business loan?

Interest can vary depending on the risk of the loan and creditworthiness of the business owner. In most cases, business loan rates vary from 5% to 25%. Ultimately the interest you can expect to pay will come down to what you qualify for. To ensure you are being offered a fair rate, try comparing offers. 

How to qualify for business financing

Qualifying for a business loan will come down to the lenders requirements, but there are a few things you can do before applying. By doing a little preparation before applying for a business loan, you can increase your chance of qualifying and potentially secure a lower rate. Here are a few steps you should take to qualify for a business loan. 

• Check your credit score (make sure there are no easy improvements)
• Determine what type of loan you want to use 
• Determine how much you need to borrow
• Prepare financial documents and tax returns 
• Compare offers 

Apply for a $100k business loan and get started 

A $100,000 business loan can accelerate the growth of your business. Before applying you should follow the steps above and create a plan for how the money will be invested. When you’re ready, start to shop loan offers. Securing a $100k business loan online is likely your best option. At PrimeRates you can unlock loan offers you actually qualify for within minutes. This means more time building your vision and less time shopping around for a loan. Checking offers from our network of lending partners does not impact credit score, but it can make a huge impact on the success of your business. 

Compare $100k business loan offers with no impact on your credit score. . . apply online today!