Business Terms Loans
Business Term loan is tied to a fixed amount of money that is used as financing by small business. The money borrowed is paid back in steady increments in a fixed period of time.
What Is Business Term Loan?
These loans are used for long term investments which include equipment, debt refinancing and commercial real estate. It finances the one time investment in your business that you have to pay back within the term.
There are both unsecured and secured business term loans that you can go for. The repayment period is between 1 to 5 years.
If you are willing to expand your business by adding new employees, introducing new product, and open in another location or acquire rival business, business term loan can be useful for this.
The rates of business term loans are lower than other option, it is commonly used for debt refinancing. Your instalment payments and total payback amount could be less at lower interest rate which could provide your business short or long term boost.
Business term loans can be paid daily, weekly or in monthly instalments which depend on your term.
It is used as a means of inventory financing which allows you to buy the materials that you need to fulfil your client expectations without having negative impact on your cash flow.
Term Of Loan
Business term loans range from 1 to 5 years which give you more time to repay your debt.
These loans are often used to finance equipments. Every business needs equipment in order to grow their business whether it is small business or large business. Business term loans can help you spread out the expense of revamping you equipment.
How You Can Use Business Term Loans?
Business term loans are mostly set up to meet any business need. You can leverage your loan for capital improvements or financing new equipments or hiring new staff.
Pros Of Business Term Loans
You can borrow large amount of money for expansion or growth.
Long repayment terms
Helps to build business credit
Loans can be approved and funded quickly i.e. within few days or weeks
You can set payment structure
It is suitable for wide range of business
Qualifying For Business Term Loan
Qualifying for business term loan involves different factors. Your personal credit score, your time in business and your company’s annual income are the factors that are important for qualifying. You should have credit score of 600 or above, your annual revenue should be $200k or more and you should be in business for minimum 1 year.
How Business Term Loan Works?
Business owners can apply for business term loan traditional by bank or online. Both have same process to apply for getting loan from both the lenders. Firstly you have to apply online or in person to the lender that you choose. After being accepted you will receive a lump sum of loan amount as per your application and need. At last you have to repay the debt within the set period of time.
Business Term Loan Financing Options
SBA Term Loans:
These loans are backed by Small business administration and also provide guarantees to the issuers. This is great option for larger amount of capital which requires long term financing. This type of loan is not for a new company. Time frame ranges from a week to a month.
Traditional Bank Term Loans:
It has great rates, good terms and low fees. The funds can be used for various purposes such as expansion of small businesses or as working capital. You need to prove the use of funds.
Long Term Business Loans:
These loans are defined as whose term is over 2 years. Interest rate varies from 7% to 28% which is based on credit and financial condition of the company. Your company should have minimum lifespan of 2 years to get qualified for this type of loan.
Short Term Business Loans:
This type of loan have fixed lump sum that is offered to small business, with the fixed payback amount that is to be paid within set period of time i.e. from 6 to 18 months. Interest rates are based on the factor costs and it costs more than traditional loan options. It require less paperwork than tradition loan option.
What Our Clients Say?
Here are few reviews and comments from our clients.
The Financing Compass worked extensively with me to help me anticipate some of the issues that my business may face. Not many lenders would go to that length. They’ve been extremely supportive and a great resource.
Financing Compass enabled me to take advantage of an incredible opportunity to relocate and expand my business, at a pivotal time. The support I received from Financing Compass staff was priceless.
Working with Financing Compass helped me develop my business plan, ideas, and brand before getting started so that I was prepared to open a successful business when I received my loan.
Are You Looking For Our Services?
If you want business terms loan loan to start your business you can contact us. We will provide you with the best service that will benefit your business.