Business Term Loan

Term loans are one of the most popular types of small business loans. Term loans are similar to car loans or mortgages, in that the money is paid back over a term of months or years. Repayment periods can vary from short term (12 months or less) to medium term (1 -3 years) to long term (3+ years). Term loans are typically secured by a lien on your business assets and may require a personal guarantee, which means your personal assets may be liable if your business does not pay back the loan. One of the benefits of a term loan is that the interest rate, is typically lower than other types of small business financing. This is important when you consider that you may be paying back the loan over a number of years. Business owners have a high degree of flexibility with how they can use the money. For instance, one could use a small business term loan to expand to a new location, replenish inventory, or hire new employees.

If you have been in business for at least two years and have a 660+ FICO, your business may qualify for a business term loan. To qualify, your business must have at least $25,000 in monthly deposits into your business bank account, or at least $300,000 in annual sales. Terms are from 12 to 60 months. In most cases, we can provide a same day decision, with the funds deposited into your checking account the next day. This term loan reports to the business credit bureaus, and in some cases there is no personal guarantee.

A business term loan is a great way to build your business credit history, giving you the opportunity for approvals of larger amounts with extended repayment times. Contact your loan associate today to get started.