Term Loans

Fixed-rate loans with predictable monthly payments

What is a Term Loan?

A Term Loan provides your business with a lump sum of capital that you repay over a fixed period (the "term") with regular monthly payments. These loans typically have fixed interest rates, making budgeting predictable and straightforward. Terms range from 1 to 10 years depending on the loan amount and your business needs.

Term loans are ideal for businesses that need a significant amount of capital for specific purposes like expansion, equipment purchases, debt consolidation, or major business investments.

πŸ’‘ Perfect For:

Businesses needing substantial capital for expansion, major purchases, debt consolidation, or long-term investments with predictable repayment schedules.

Advantages & Considerations

βœ“ Advantages

  • Fixed monthly payments for easy budgeting
  • Typically lower rates than short-term financing
  • Longer repayment periods (1-10 years)
  • Large loan amounts available
  • Build business credit history
  • Use for any business purpose
  • Ownership not diluted (unlike equity)
  • Interest may be tax deductible

⚠ Considerations

  • Requires good credit history
  • May need collateral for larger amounts
  • Personal guarantee often required
  • Fixed monthly obligation regardless of revenue
  • Early prepayment penalties may apply
  • More documentation than short-term options

Qualification Requirements

  • Credit Score: Minimum 650 FICO score (personal or business)
  • Time in Business: At least 1-2 years of operation
  • Annual Revenue: Minimum $100,000 in annual revenue
  • Financial Statements: Recent profit & loss and balance sheets
  • Bank Statements: Last 3-6 months of business bank statements
  • Tax Returns: 1-2 years of business tax returns
  • Business Plan: May be required for larger loans

Common Uses for Term Loans

πŸ“ˆ Business Expansion

Open new locations, hire staff, enter new markets

πŸ—οΈ Equipment Purchase

Major equipment, machinery, or vehicle purchases

πŸ’Ό Debt Consolidation

Consolidate high-interest debt into one payment

🏒 Real Estate

Purchase or improve commercial property

πŸ“¦ Inventory

Large inventory purchases or seasonal stock

πŸ’° Working Capital

Long-term working capital needs

How Does It Work?

1. Apply: Submit application with financial documents and business information.

2. Review: Lender reviews your creditworthiness, revenue, and business history.

3. Approval: Get approved with your loan amount, interest rate, and term length.

4. Funding: Receive lump sum in your business bank account.

5. Repayment: Make fixed monthly payments over the agreed term until paid off.

Term Loan Options

Short-Term Loans (1-2 years)

Quick funding, faster repayment. Amounts: $10,000 - $250,000

Medium-Term Loans (3-5 years)

Balanced approach. Amounts: $25,000 - $500,000

Long-Term Loans (6-10 years)

Lower monthly payments, major investments. Amounts: $100,000 - $5 million+

Key Benefits for Your Business

  • βœ“ Loan amounts from $25,000 to $5 million+
  • βœ“ Competitive fixed interest rates
  • βœ“ Terms from 1 to 10 years
  • βœ“ Predictable monthly payments
  • βœ“ Fast approval process
  • βœ“ Use for any business purpose

Ready to Apply?

Get your term loan approved today

Apply Now