Business Term Loans

We’re Here to Help Find the Right Business Term Loan for You

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What is a Business Term Loan

Even when you’re already established in your industry, small business loans and financing options can often come in handy. Some of the most popular funding products include business term loans, which offer a lump sum of capital paid back over a specified schedule.

Business term loans vary in duration; Some are shorter-term loans, while others are longer-term loans. You even have the option to explore medium-term loans with an intermediate repayment schedule.

The loan term or repayment schedule for a business term loan is typically monthly, bi-monthly, weekly, or sometimes daily. An automatic clearing house or ACH deducts the payment from your business bank account based on a set schedule.

You can find business term loans from several lenders, including traditional business lenders like banks and credit unions, the Small Business Administration, or online Fintech lenders through the marketplace at AdvancePoint Capital.

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AdvancePoint Capital makes the loan application process a simple, straightforward experience.

Choosing the Right Business Term Loan

When searching for small business funding, first ask yourself, “Why?” Why do you need the funding you are applying for right now? The purpose or use frequently dictates which loan is best for you. Traditional lenders and online lenders alike will want to know where their money is headed when determining a small business owner’s eligibility for a term loan.

The product you settle on applying for is ultimately up to you, but multiple components are at play. While many business owners only make their choices based on business term loan rates, there are more things to consider, such as:

  • Costs
  • Repayment terms
  • Payment frequency
  • Product flexibility
  • Minimum credit score
  • Eligibility requirements
  • Use of funding

After considering everything above, you can determine whether short-term loans, medium-term loans, or long-term loans are right for your business. AdvancePoint Capital will help you make an educated decision about the best business term loan for your needs.

Benefits and Best Uses of Business Term Loans

  • Raising capital to expand infrastructure or operations
  • Acquiring new or existing businesses
  • Funding significant or ongoing projects
  • Replenishing essential supplies and inventory
  • Covering emergency expenses
  • Finishing facility renovations
  • Hiring new employees
  • Debt refinancing
  • Purchasing or lease large machinery and equipment
  • Making regular payments at a fixed interest rate

The 5 Best Business Term Loan Options

Take a look at some of the most popular term loan options for small business owners below:

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Traditional Bank Term Loans

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Long Term Business Loans

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Short Term Business Loans

SBA Loan

Small Business Administration (SBA) Loans

Invoice Financing

Business Acquisition Term Loans

The fast, convenient, and straightforward way to get the money you need for your small business – now!

Get your quote today by filling out our simple form.

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Qualifying for a Business Term Loan

Quite a few factors can play a critical role in your ability to get approved for a small business term loan.

Credit History

Many term loan products require a decent credit score and solid credit history to qualify. Some options, such as short-term loans, have more leniency when it comes to personal credit.

Financial Statements

Documentation of your business’s financial health is critical in proving your creditworthiness to a lender. You may be asked to provide profit and loss statements, annual revenue insights, market projections, and more.

Time in Business

Most lenders like to see that you’re well-established in your industry. Term loan options typically require your business to operate for at least one year, if not two or more.

Other Requirements

Loans like those from the SBA or a traditional bank might require you to submit additional paperwork such as a business plan.

Collateral

Products such as business acquisition loans will require business owners to provide collateral such as real estate, personal or business assets, and equipment.

Pros and Cons of Business Term Loans

Pros

  • Meets a range of business needs
  • Predictable payment structure
  • Online lenders often fund quickly
  • Helps build business credit and improve business credit score
  • Can finance a larger project or major investment
  • Same-day decisions from trusted lenders

Cons

  • Typically requires collateral or a personal guarantee
  • Potential for prepayment penalties
  • Can have higher fees than other small business financing options

FAQ: All About Business Term Loans

Apply for a Business Term Loan With AdvancePoint Capital Today

At AdvancePoint Capital, we strive to be the one-stop-shop for small businesses seeking out a term loan or any other small business financing product for that matter. We make you our top priority and provide valuable insights while searching for the best business term loan for your organization.

Our experts can help you explore every possibility and compare multiple lenders, all with attractive rates. This way, you can settle on a loan product that’s perfect for your business and its needs. Contact us now to learn more about business term loans and additional options to continue expanding your business today.

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