Can Your Business Get a 1 Million Dollar Loan?

Invoice financing allows you to borrow against your unpaid invoices, providing fast access to cash that would otherwise be tied up waiting for customer payments. The lender advances you a percentage of the invoice value, typically 80-90%, and holds the rest until your customer pays. Once the invoice is paid, you’ll receive the remainder minus the lender’s fees. This type of financing is ideal for businesses that deal with lengthy payment terms and need to smooth out cash flow without taking on traditional debt.

A business line of credit is a revolving credit option, meaning you can draw from it as needed and repay it over time. The main advantage is flexibility—you can borrow what you need—when you need it and reuse the funds as you pay them back. It’s used to handle ongoing expenses like payroll, seasonal fluctuations, or unexpected costs. Credit limits typically vary based on the financial health of your business, but with a million-dollar limit, you have the security of access to large sums when opportunities arise.

A business term loan provides a set amount of money you pay back over a fixed period, usually with monthly payments. The terms can range from short (a few months) to long (several years), depending on your business needs and financial situation. These loans are often used for specific, one-time purchases like expanding your facilities, acquiring another business, or purchasing long-term assets. The fixed repayment schedule allows for easy budgeting, and the loan’s interest rate is generally lower for larger amounts like a $1 million loan.

Inventory financing is a specialized loan for businesses that need to purchase inventory. This loan can be structured as a line of credit or a term loan, allowing you to buy stock before the peak season. Lenders often use a formula to determine the loan amount, covering up to 100% of the cost of goods. Since the inventory itself serves as collateral, this type of financing is ideal for retail, wholesale, or manufacturing businesses where rapid inventory turnover is key. Inventory financing helps ensure you never miss out on sales opportunities due to stock shortages, especially during busy seasons.

Equipment financing helps you purchase expensive equipment without large upfront payments. This type of loan uses the equipment itself as collateral, meaning it’s easier to qualify for than unsecured loans. Whether you need new manufacturing machinery, vehicles, or IT systems, equipment financing allows you to spread the cost over time while immediately benefiting from the equipment. The loan can cover up to 100% of the equipment’s value, and since the equipment secures the loan, the interest rates are often lower than other types of financing.

Small Business Administration (SBA) loans are government-backed, making them one of the most affordable business loan options. While the process can be more time-consuming, the benefits are worth it—longer repayment terms (up to 25 years), lower interest rates, and flexible use of funds. There are different types of SBA loans, such as the popular SBA 7(a) loan, which can be used for working capital, debt refinancing, equipment purchases, and even real estate. These loans are perfect for businesses that need significant funding but want to keep monthly payments manageable.

Asset-based loans are secured by a company’s assets, such as inventory, accounts receivable, or equipment. The value of these assets determines the loan amount, and the lender places a lien on them as collateral. This type of financing is beneficial for businesses with valuable assets but may struggle with traditional financing due to weaker credit. Asset-based loans provide larger amounts of capital, like $1 million, and can be used for any business purpose, from improving cash flow to funding new projects.

Bridge loans provide short-term financing to cover immediate needs until long-term funding becomes available. They are commonly used when a business waits for a more permanent loan, a large payment, or another significant financial event. Bridge loans are often used in real estate to secure a property while waiting for long-term financing, but they're helpful for businesses facing temporary cash flow shortages. With higher interest rates and shorter terms, bridge loans are a fast solution to urgent financial gaps, allowing businesses to maintain operations and take advantage of timely opportunities.