Business Owner in Workshop

WHAT IS A SMALL BUSINESS TERM LOAN?

A business term loan is a lump sum of money you borrow from a lender, then pay back at fixed intervals — with interest — over a set period of time. Depending on your lender, you’ll pay off the loan on a weekly, bi-weekly, or monthly basis. Repayment periods can last from a few months up to 10 years or more. 

Interest rates also vary by lender, but they can be either fixed or variable. Fixed rates stay the same, while variable rates change depending on the state of the market.

Business term loans are great vehicles to invest in big purchases and long-term business growth. With long repayment periods and typically lower interest rates than credit cards, term loans give you ample time to generate a return on your investment before you have to pay your loan off. 

 

Ideal Financing For Your Business

Business term loans allow borrowers to pursue large-scale growth strategies while paying for the initiative over the life of the loan. Whether you are looking to tackle the next part of your business plan, open a new location, purchase/rent new equipment, expand into new markets, grow your team, or launch a new product, term loans can help you reach your next phase of growth.

Longer term loans are best for planned business expansion and growth goals. Similar to buying a house or getting a college education, many business initiatives take time to gain a return on investment. The lower monthly repayment amounts of long-term loans can give your business the margin it needs to maintain positive cash flow.

 

Quick Application

Applying is quick and simple and remittances are automatically debited from your account at a fixed rate each month, giving you the peace of mind that your remittances will stay consistent.

 

High Approvals

Because your funding request is directly tied to your growth strategy, we get you access to the highest dollar amount you qualify for, while maintaining competitive rates and longest terms.

 

Automatic Remittances

Automatic remittances are based on a factor rate and are gradually debited as a percentage of future credit card and debit card sales. Remittances are automatically deducted from the business bank account where funds were deposited.

Avg. Term Length: 12 - 60 months

Small Business Term Loan Details

 

Qualifying Criteria:

Required Items:

  • 700+ credit score

  • 24+ months in business

  • $10,000+ average monthly bank deposits

  • Signed one page funding application

  • 3-5 most recent business bank statements

  • Business tax returns (not all cases)

No Collateral Requirements

 

Advantages

  • Lower interest rates

  • Cash flow flexibility, as you can allocate your remaining cash for short-term operational expenses and emergencies

  • Long term payment structure

  • The interest is tax deductible

 

Disadvantages

  • Keeping up with fixed payments can be difficult for businesses that experience seasonality or fluctuation

  • Better suited for long-term projects rather than quick wins and cash flow stabilization

  • Can be more difficult to qualify for