How To Get a $1 Million Business Loan: The Ultimate Guide

1. Assess Your Financing Needs

Good cash flow management will take care of day-to-day operations, but a large amount of capital can go a long way when it comes to scaling your business. Consider the investments and assets that take your business to the next level.

With a seven-figure loan, you can:

• Renovate and/or expand into new locations

• Purchase equipment and technology

• Build an emergency fund

• Invest in marketing campaigns

• Buy inventory in bulk

Before applying for a loan, assess what revenue-driving factors you need in different areas of your business. This way, you can determine how much funding you need and plan how to use the loan.

To qualify for a million-dollar business loan in 2025, most lenders expect your business to demonstrate high and predictable income. A clear funding plan backed by cash flow projections or existing contracts can help justify the loan amount and make lenders more confident in your request.

Many lenders now look for annual revenue in the $1 million to $5 million range for seven‑figure loans, especially if the business is less than five years old. If you're not generating this level of revenue yet, identifying exactly how the funds will generate ROI, such as acquiring equipment that increases output or opening locations with existing demand, can strengthen your application.

Adding this level of detail to your financing plan helps you stand out from other borrowers competing for large loan approvals.

2. Compare Lenders

There's no one-size-fits-all approach when choosing a lender. It's important to research and identify lenders who provide large business loans and have a history of working with businesses in your industry.

Small businesses typically have two main choices of lenders: traditional banks and alternative lenders. Let's look at their differences to determine which best suits your business.

Traditional Lenders

Banks and credit unions are known as the traditional "go-to" lenders, with most having local brick-and-mortar branches in your town. In addition to business loans, these financial institutions offer a wide range of financing products, such as business credit cards and merchant services, as well as discounts within their loan programs.

You can expect bank and credit union loans to have lower annual percentage rates (APRs) and flexible repayment terms. As for drawbacks, traditional lenders tend to have strict lending requirements, such as excellent credit scores and high annual revenue. They also charge various fees and have a lengthy loan application process.

In 2025, traditional lender interest rates typically range from 7% to 11% for well-qualified borrowers, depending on the loan type, collateral, and term length.

Alternative Lenders

Outside of banks and credit unions, there are online and private financial institutions. These alternative lenders generally work with small businesses, especially those turned down by banks, and offer simpler loan applications entirely online. They also have more flexible borrowing criteria than banks, such as fair credit scores.

You can expect alternative lenders, especially online lenders, to have a more streamlined application process and quicker disbursement of funds. The only downside is higher interest rates since alternative lenders are generally taking on more risk.

Today, online lenders may offer large loan amounts with faster approval, sometimes in just 24 to 72 hours. But interest rates often range from 9% for highly qualified applicants to 15% or higher, especially if your credit profile is below prime.

Clarify Capital works with both traditional and alternative lenders, giving small business owners access to more than 75 providers who fund loans up to $5 million. Your dedicated Clarify advisor helps you compare loan types and choose the most affordable financing for your business goals.

3. Determine Your Eligibility

Before approaching lenders, thoroughly assess your borrowing eligibility. Understand that a $1 million business loan will most likely have more stringent borrowing criteria. Lenders will review both your credit score and credit history, including payment patterns, delinquencies, and existing debt.

While application requirements vary by the lender, most lenders review the following factors:

• Credit score: At least 550

• Time in business: At least six months

• Annual revenue: Over $120,000

If your business doesn't meet this criteria yet, it's still possible to qualify for a million-dollar loan. This is where strategic planning enters.

Ways To Boost Your Chances of Approval

A strong credit profile can significantly enhance your loan approval odds. You'll want to address any outstanding issues on your credit report, pay off existing debt, and make on-time payments to other loans to boost your credit score.

Additionally, offering a personal guarantee or collateral — high-value equipment and business assets — can significantly increase your chances of loan approval. Since many lenders already require collateral to mitigate the financial risk, offering it to one who doesn't can make you a favorable borrower.

Keep in mind that while some lenders may approve $1 million loans with monthly revenue as low as $50,000, most prefer to see annual revenue near or above $1 million, especially if you're requesting unsecured funding.

Other factors lenders may assess include:

• Business plan strength. Does it clearly show how you'll use the funds to drive revenue or ROI?

• Debt-to-income ratio. If your business is already highly leveraged, that may hurt your chances.

• Industry type. Lenders may view businesses in high-risk or seasonal industries differently.

Your Clarify Capital advisor can walk you through eligibility requirements and recommend loan options based on your business's financial profile and goals.

Apply for $1M Business Loan

4. Prepare Your Business Documentation

The process of applying for a business loan will vary depending on the lender, but most of them still require a significant amount of documentation, especially to get approved for $1 million. You'll most likely need to gather:

• Credit reports. Both personal and business credit scores help lenders assess your creditworthiness.

• Tax returns. Provide at least two years of personal and business tax returns to verify income and profitability.

• Business bank statements. These help lenders evaluate your cash flow, average balances, and consistency of deposits.

• Balance sheets or accounts receivable. Show your assets, liabilities, and the strength of your balance sheet.

• A solid business plan. Detail your growth strategies, how you'll use the loan, and projected revenue or cost savings.

• Any applicable business licenses, certifications, and registrations. These confirm your business is legally authorized and compliant.

Some lenders may also request financial statements prepared by a CPA, including profit and loss (P&L) statements, especially for loan amounts over $1 million.

To streamline the approval process, Clarify Capital helps you gather and organize all necessary documents. Your dedicated advisor will walk you through exactly what's needed based on the lender's requirements and the type of loan you're pursuing.

Having your documentation in order upfront can help speed up the approval timeline, especially when applying through online lenders that offer faster funding options.

5. Apply and Submit Your Application

After gathering all of the necessary paperwork, you can complete the loan application. Some lenders allow you to submit everything online, but some traditional lenders, such as banks, may require you to visit a local branch in person.

After submission, you're officially in the waiting period. While waiting for approval can take up to a few weeks for traditional lenders, most online lenders can guarantee loan approval within a few business days.

Once approved, your lender will send you the loan agreement to review, outlining the total amount, your interest rate, monthly payment, and any additional fees. After signing the agreement, your lender will disburse the loan.

With Clarify Capital, the application process is simple and fast. You can apply online in just two minutes, and your dedicated advisor will match you with lenders based on your business's unique profile. Once approved, you can receive funding in as little as 24 hours.

If you're applying for a $1 million loan, be prepared to respond quickly to lender questions and provide any follow-up documentation. Staying responsive can help avoid delays and speed up your approval.

Types of $1 Million Business Loans

Several types of business loans have limits of over $1 million. Depending on your eligibility, here are a few from which you can choose:

Secure up to $5 Million Through Clarify Capital

It can take a lot of time and planning to secure $1 million in financing. Fortunately, with the right lender, you can avoid jumping through hoops.

Clarify Capital has more lenient eligibility for small businesses and faster approval. We team with our 75+ network of lenders to secure the best loan option for your industry and business needs.

Apply for a $1M loan today

Frequently Asked Questions

We answer common questions about $1 million business loans.