Fixed-payment business loans for predictable growth.
Get a lump sum today and repay on a fixed schedule. Best for one-time investments where you want a clear payoff timeline.
What a business term loan is
A business term loan is the most traditional form of small business financing. You borrow a fixed lump sum, agree to a fixed (or variable) interest rate, and repay on a fixed schedule until the balance is zero.
Term loans are the right tool when you know exactly what you want to fund and roughly how long it will take to pay it off. Equipment purchases, build-outs, business acquisitions, and inventory expansions are common use cases.
In our marketplace, term loans range from short-term (3–18 months, faster approval, higher rate) to long-term (5–10 years, more documentation, lower rate). We match the term to your use of funds and your cash flow.
How a term loan works
You apply with business bank statements, basic business info, and a personal credit pull. The lender underwrites your file and presents an offer with the loan amount, term, rate, and monthly payment.
Once you sign and the loan funds, you receive the full amount as a lump deposit to your business account. Repayment starts the following month (or sometimes the next billing cycle) and runs on the agreed schedule.
Most term loans have no prepayment penalty for paying down principal early, which can save you significant interest if your cash flow allows. We confirm this for every offer we present.
What to weigh before you apply.
Pros
- Predictable monthly payment makes budgeting straightforward
- Lower rates than short-term advance products
- Available for nearly any business purpose
- Builds business credit when paid on schedule
Cons
- Approval requires stronger credit and longer business history than MCA products
- Lump sum disbursement means you start paying interest on day one
- Personal guarantee almost always required
- Long-term loans require heavier documentation
How it stacks up against other funding products.
Questions before you apply.
What credit score do I need for a business term loan?
Short-term loans (3–18 months) are available with personal credit scores as low as 600. Longer-term loans (3–10 years) typically require 660+ and at least 2 years in business.
Can I get a term loan if my business is brand new?
Most term loan lenders require at least 6 months of operating history. For businesses younger than that, we typically route to a startup-friendly product or a personal-credit-based option.
Is the rate fixed or variable?
Both are available. Short-term loans are almost always fixed-rate. Longer-term loans and SBA loans often have variable rates tied to the Prime rate.