What is a Business Term Loan?
A business term loan provides a one-time funding amount that you repay over a fixed period with scheduled payments. It’s ideal for businesses looking to invest in growth while maintaining stable cash flow.
What You Can Use It For
Business expansion
Inventory purchases
Hiring staff
Marketing campaigns
Operational expenses
Key Benefits
Fixed repayment schedule
Access larger funding amounts
Builds business credit
Lower rates than short-term financing
You get a lump sum payment upfront when you take out a business term loan. You repay it over a predetermined term with regular installments (length of time).
The interest component of your monthly payment may be constant (at a fixed rate) or variable (at a variable rate) over the course of the loan term. The most popular loans are those with fixed rates since they provide predictable budgeting and steadiness. Periodically, a variable rate will fluctuate, typically in tandem with the prime rate. Depending on the program, you might be able to repay your loan early without incurring penalties, which would save you a lot of money.
To be eligible for a business term loan, you must have great credit. However, compared to other small company finance options, they typically have the lowest fees, largest loan amounts, and longest periods.
Typical Requirements
6+ months in business
Minimum monthly revenue ($10K–$20K+)
Good credit
Not sure which option is right for you?
We’ll match you with the best funding solution based on your business