A fixed-sum loan repaid over a specific term, often used for operational expenses, growth initiatives, or capital investments.
Businesses borrow a lump sum, repay it in fixed installments over the loan term, and often pay interest. It's suitable for planned expenditures.
Predictable payments, access to larger sums, flexibility in use, and potential tax benefits make it a preferred financing option.
Qualifications vary but typically include a minimum credit score, time in business, and revenue threshold. Collateral may be required.
Loan amounts range based on business financials, needs, and lender policies, often reaching several million dollars.
Terms range from 1 to 10 years, allowing businesses to match loan duration with the purpose of financing.
Rates vary based on factors like creditworthiness, market rates, and loan term, often falling between 4% and 14%.
Many lenders allow prepayment without penalties, offering businesses flexibility to pay off the loan sooner if possible.
You can use the funds for various business needs, including expansion, equipment purchases, working capital, marketing, or refinancing.
Application times vary but can take as little as 15 minutes to a few hours. Approval may take 2 to 3 business days.
Commonly required documents include financial statements, tax returns, bank statements, business plan, and information on collateral.
Business Term Loans offer flexibility, often allowing you to decide how to use the funds, provided it's for legitimate business purposes.
Startups may have more difficulty due to limited financial history, but established businesses with a track record are more eligible.
Late payments can lead to penalties and impact your credit. Contact your lender if you foresee issues to explore potential solutions.
Research reputable lenders, compare terms, rates, and reviews, and choose a lender that aligns with your business needs and goals.