Loan program

Business Term Loans

Fixed-rate, lump-sum financing with predictable monthly payments. Ideal for growth initiatives, large purchases, and working capital that requires longer repayment terms. A term loan delivers upfront capital repaid over a fixed duration with regular installments. Unlike a line of credit, borrowers receive the complete loan amount at closing and make consistent monthly or weekly payments until satisfied. Term loans suit one-time expenses or investments where the needed amount is known upfront and structured repayment can be planned.

  • Loan amounts: $50,000 to $2M+ depending on business size, revenue, and credit profile
  • Terms: 12 to 36 months typical; longer terms available through SBA programs
  • APR typically ranges from 8% to 35% based on creditworthiness and business performance
  • Fixed monthly or weekly payments; fully amortizing
  • Approval in 24–72 hours; funding typically within 3–7 business days
  • Many lenders offer prepayment options with no or minimal penalties
  • Minimum annual revenue of $250,000+
  • Personal credit score of 650+ required (higher for better rates)
  • Origination fees can be 2–5% of loan amount

Best Use Cases

  • Business expansion: Open new locations or expand operations
  • Large inventory purchases: Buy in bulk for favorable pricing
  • Marketing and growth initiatives: Fund campaigns with measurable ROI
  • Refinancing high-cost debt: Consolidate into one predictable payment
  • Working capital: Bridge gaps while pursuing growth
  • Technology and infrastructure: Upgrade systems and tools

Qualification Requirements

Minimum Criteria:

  • At least 1 year in business (2+ years preferred for larger amounts)
  • Minimum annual revenue of $250,000+
  • Personal credit score of 650+ (higher for better rates)
  • Profitable or break-even operations
  • No recent bankruptcies or significant tax liens

Documentation Needed:

  • 6–12 months of business bank statements
  • Profit & loss statements
  • Business tax returns (1–2 years)
  • Personal ID and possibly personal tax returns
  • Business formation documents
  • Use of funds explanation

Example Scenario

A retail business with $750K annual revenue needs $150,000 to expand inventory and launch a marketing campaign, qualifying for a 36-month term loan at 18% APR.

Loan Amount: $150,000
APR: 18%
Term: 36 months
Monthly Payment: ~$5,434
Total Repaid: ~$195,624
Total Interest: ~$45,624

Advantages

  • Predictable monthly payments
  • Lump sum upfront for large expenses
  • Lower rates than lines of credit
  • Longer repayment terms reduce payment size
  • Builds business credit history

Disadvantages

  • Must repay entire amount even if needs change
  • Higher rates than SBA or bank loans
  • May require collateral or personal guarantee
  • More documentation than lines of credit
  • Origination fees can be 2–5% of loan

Frequently asked questions

What is the difference between a short-term and long-term business loan?
Short-term loans typically have terms of 3–18 months with higher monthly payments but faster payoff. Long-term loans have terms of 2–5+ years with lower monthly payments but more total interest.
How much can I borrow with a business term loan?
Loan amounts typically range from $50,000 to $2M+ depending on business revenue, creditworthiness, and loan purpose. Lenders typically approve 10–30% of annual revenue.
What credit score do I need for a business term loan?
Most lenders require a personal credit score of 650+ for term loans, though some alternative lenders accept 600+. Higher scores (700+) qualify for better rates.
Can I pay off a business term loan early?
Most lenders allow early payoff; some charge prepayment penalties typically 2–5% of the remaining balance. Many alternative lenders don't charge prepayment penalties.
How long does it take to get approved for a business term loan?
Alternative lenders typically approve term loans in 24–72 hours, with funding within 3–7 business days. Traditional banks may take 1–4 weeks; SBA loans take 1–4 weeks for approval.

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Apply once and get a clear funding offer in 24–72 hours — no hard credit pull to pre-qualify.

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