Term Loans

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Loan Amount

$5,000 – 5.5 M

Term

5 – 25 Years

Time to Funding

As few as 30 Days

Interest Rate

6 – 13%

Term Loan

A long term loan which is paid back with regular payments over time, including interest. This type of loan is extremely flexible and can be used for almost any business purpose. A mortgage is the best known example of a term loan.

Examples:

Purchase of inventory
Purchase of shopfront or warehouse space for a retail or wholesale operation
Vehicles and radios for a courier company

Term Loans In Detail

Term loans come with a wide variety of structures and terms, from short term loans with daily payments to five years with monthly payments.

What you'll need to Qualify

. Minimum credit score: 620

. Minimum years in operation: 2

. Minimum revenue: $100,000 annually

. Disclaimer: Minimum qualifications vary according to lender.

Most Common Loans

The most common type of business loan, traditional term loans are what most people think of when they look for a loan. The bank or other financial institution loans you a lump sum of money, usually secured against collateral, and you pay that money back, principal and interest, with regular payments over a set time period. Interest can be fixed or variable, depending upon the amount of the loan and what the loan is for. The most common type of term loan, and the one we're all familiar with, is a mortgage for a home or commercial property. Term loans work the same way.

While these loans usually come from a bank, there are other lending institutions available. Big Think keeps a comprehensive list of these lenders. Some lenders will only deal with certain types of businesses, while others focus on specific geographic areas.

If you qualify for this type of loan, you can use the money for anything your business needs, from equipment to expansion to covering short term cash shortages.