About Term Loans

Term loans are traditional business loans. A business is funded a lump sum of capital and is expected to repay the loan over a set term, with a fixed interest rate. Terms can range anywhere from 1 year to 5 years, and rates can vary between 5% to 25%. Businesses typically use traditional term loans to finance a specific project or investment.


Pros

  • Lower payment amounts than shorter term financing alternatives
  • Fixed payment structure
  • Can be used by multiple business types for a wide range of purposes

Cons

  • Depending on the approval terms, there can be penalties for early repayment
  • Harder to qualify for – typically requires good credit and some time in business
  • May require collateral based on the risk of the loan

Term Loans - Quick Facts

Term loans are traditional business loans, with a set term and a fixed interest rate. Funding amounts range from $10,000 to $500,000. Repayment terms can range anywhere from 1 year to 5 years. Interests rates can vary typically from 5% to 25%. If approved, funding can take as little as 1 -2 days!

Funding Amounts

$10k – $500k

Time to Fund

24 – 48 Hours

Terms

1 – 5 Years

Rate

5% – 25%

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Term Loan Highlights

Here are some highlight features of Term Loans


Wide Range of Uses

Term loans can be used by a business to finance a wide range of projects and investments!

Fixed Payment Structure

Term loans have a fixed payment structure. Repayments are made based on a set term and rate.

Lower Payment Amounts

Term loans typically have lower monthly payment amounts than shorter term financing options, due to their extended repayment periods of 1 – 5 years.

Multiple Repayment Structures

Term loans have multiple repayment structures which can be helpful based on how your business operates and your cash flow. For example, repayment structures can range from 12 months with daily payments to 60 months with monthly payments.