Term Loan

What is a term loan?

A term loan is offered in two types of formats known as a short-term or long-term loan. Regardless of which one you choose, this type of loan requires small business owners to pay back in monthly installments plus the interest charged. For instance, a short-term business loan payment plan would be under 12 months, while long-term loans (above a year) tend to be around 3-5 years.

Top 5 Benefits

Lower Interest rates
Increased flexibility
Frees up cash flow
Manageable payments
Secured loans

Term Loan Qualifications

Time in business 3 months (Minimum)

Monthly Revenue $5k (Minimum)

Business Bank Account (Required)

No Minimum Credit Score Required

Basic points to consider when applying for a term loan

Acquiring a business term loan from traditional lenders can be a challenge for small businesses—dealing with obstacles that require business owners to be pre-qualified for the loan. Lenders will all also need financial reports such as profit and loss, full tax returns, and projected accounts receivable. The main points to consider include:

Financial reports: Requirement of extensive financial reporting such as profit and loss.
Eligibility: The lender may restrict the amount of capital you are eligible to receive.
Guidelines: Lenders may require businesses to receive funding for specific items.