What is a Small Business Term Loan?
Find the Lowest Rates on Business Term Loans
When you own a small business, you often find yourself juggling finances as you have periods of a surplus of money coming in and other periods where there isn’t enough to pay your bills. During these times, or when unexpected bills or emergencies come up and the funds are not available to take care of them, it may be necessary for you to take out a small business term loan to get you through.
A traditional small business loan is a sum of money provided to a company that uses the capital for a business purpose. This may include categories such as working capital, equipment, expansion or renovation, or multiple other company needs. If it is necessary for your organization to grow or continue, the small business loan can be used to cover it.
However, many applications are rejected when the owners go through the traditional route of trying for a bank loan. That’s because the bank’s approval process is lengthy, thorough, and strict. Without the best credit and the right documentation, you can’t get approved. And if you do, you usually won’t know or get access to the capital you need for weeks or even months.
Going through an alternative financial loan company like AdvancePoint Capital gives you a chance to get financed under less strict terms and in a much faster time frame. Instead of waiting until your company doesn’t have enough money to function while you hope you get approved for your loan, you can apply for a small business loan through AdvancePoint Capital.
The use of “term” means that it’s a fixed length or period of time to repay. Fixed loans can either have fixed costs or costs based on an interest rate with principal and interest.
Most business loans fall in the range of $10,000 to $500,000. Approval of the loan is based mostly off of the company’s monthly gross sales rather than the profit and loss of the company, so it’s easier for AdvancePoint Capital to approve more loans.
|Application||A simple one page application|
|Paperwork||Provide Company Bank Statements for cash flow review. (We focus on gross sales not primarily profit/loss!)|
|Credit||All credit types considered from excellent to poor|
|Time in Business||Established for a minimum 6 months. NO START-UPS|
Loan Amount Size
$10,000 up to $500,000
Up to 60 months
Fixed Payments with a simple, easy auto repayment from your Company Bank account.
Who can Qualify for a Small Business Term Loan?
Anyone who currently owns a firm with revenue can qualify for a traditional loan. Qualifications such as credit requirements, sales volume, and time in business vary depending on the funding product you’re applying for.
Traditional bank loans have longer lengths of time to pay than non-traditional or alternative funding, so expect to see more emphasis on having excellent credit and more time as an organization. Alternative Business Term Loans offer more lenient credit and shorter times in existence, but costs and length of term will be shorter to compensate for the risk.
How to Apply for a Small Business Term Loan
There are a variety of loan products. A good rule of thumb is that the better the costs, rates, and terms, the more information (paperwork), requirements, and length of time it will take to get an answer.
What you will find with most lenders and funders is that an application will have to be filled out either offline or online that will include many of the following pieces of information:
- Owner’s personal information, which includes full name, home address, company email, social security number, date of birth, and ownership shareholder percentages.
- Legal business name and DBA if applicable, address, number, and website.
- Time in existence under current owner’s control, registration date with the state you formed in.
- Company bank relationship information.
- Organization landlord information or mortgage information if you own property.
- Description of the venture and its activities.
Documents you may need include but are not limited to*:
- Company Bank Statements
- Balance Sheet Statement
- Profit & Loss Statement
- Business and/or Personal Tax Returns
*Loans vary greatly, and some require only bank statements while others will require more.
There are many different types of business term loans from both traditional and non-bank sources that vary in length of time in repayment and costs. The exact details require a conversation with a funding expert that will need to understand your company and its specifics, and then find the best funding product available for you and your needs.
The fast, convenient and straightforward way to get the money you need for your business – now! Get your Quote Today by filling out our simple form.