Business Term Loans
A lump sum repaid over a set period, commonly used for defined projects and one-time investments.
Program overview
A business term loan provides a lump sum that is repaid over an agreed term on a defined schedule. Rates may be fixed or variable depending on the financing provider.
How it works
- The business receives the full loan amount at closing.
- Repayment follows a schedule set in the loan agreement.
- Terms, rates, and fees are set by the financing provider based on its underwriting.
Common uses
- Expansion projects
- Equipment or build-out
- Refinancing
- Hiring and marketing investments
Who may be a good fit
- Businesses with a specific, quantified funding need
What you may need
- Business bank statements
- Business tax returns
- Personal tax returns
- Year-to-date profit and loss statement
- Balance sheet
- Business debt schedule
- Government-issued identification
- Business formation documents
Potential advantages
- Predictable payment schedule
- Useful for defined, one-time projects
- Widely available
Potential drawbacks
- Less flexible than a revolving line once funded
- Prepayment terms vary by provider
Application process
- Define the amount and purpose
- Gather financial documentation
- Submit application to one or more providers
- Underwriting, offer review, and closing
General qualification considerations
- Time in business and revenue history
- Cash flow relative to proposed payments
- Owner credit profile
- Existing business debt obligations
Alternatives to consider
SBA 7(a) LoansThe SBA's most widely used program, generally used for working capital, expansion, equipment, and some acquisitions.Business Lines of CreditA revolving limit a business can draw from as needed, often used for short-term or recurring cash flow gaps.Equipment FinancingFinancing structured around the purchase of business equipment, where the equipment often serves as collateral.
Frequently asked questions
What term lengths are available?
Term lengths vary widely by provider and product. Review the specific offer documents for the term, payment amount, and total repayment.
This is preliminary information, not an eligibility determination, offer, or approval. Final eligibility, terms, rates and approval are determined by the applicable financing provider.