Receive a lump sum of capital upfront and repay over a fixed schedule with predictable monthly payments. Ideal for major business investments, expansion, and long-term growth.
A Business Term Loan is a type of financing where a lender provides your business with a lump sum of money upfront, which you repay over a fixed period — the "term" — through regular scheduled payments that include principal and interest.
Term loans are one of the most straightforward and widely used forms of business financing. Unlike a line of credit (which is revolving) or an MCA (which is revenue-based), a term loan has a clear start date, end date, fixed repayment schedule, and a predetermined total cost. This predictability makes them ideal for planned business investments where you know exactly how much you need and what you'll use it for.
Repayment terms range from as short as 3 months (short-term) to as long as 7+ years (long-term), depending on the loan amount, lender, and your business's creditworthiness. Interest rates can be fixed (same rate throughout) or variable (fluctuates with market rates).
Business term loans are grouped by repayment length — each type serves different financing needs and comes with different rate structures.
A straightforward, predictable process — from application to funded, and through every fixed monthly payment until the loan is repaid.
Submit your application with business and personal financial details: credit score, annual revenue, time in business, and intended use of funds. Online lenders like those in our network can pre-qualify you in minutes with a soft credit check — no impact on your score.
📝 Soft pull only — no credit impact to check your rateOnce reviewed, the lender presents a loan offer specifying: the loan amount, interest rate (fixed or variable), repayment term (months), monthly payment amount, any origination fees, and total cost of borrowing. Compare multiple offers to find the best rate and terms for your business.
🏆 Compare offers from 200+ lendersAfter signing the loan agreement digitally, the full lump-sum amount is deposited directly to your business bank account — typically within 1–3 business days for online lenders, or 1–2 weeks for banks and SBA loans. The funds are yours to use immediately for your intended purpose.
🏦 Funded in 1–3 business days (online lenders)Each month, you make the same scheduled payment (principal + interest) via ACH auto-debit or manual transfer. Your amortization schedule shows exactly how much of each payment goes to principal vs. interest. Early in the loan, more of each payment is interest — this gradually shifts toward more principal over time.
📅 Same payment, same date, every monthAt the end of the loan term, your final payment brings the balance to zero. Many lenders allow early payoff without prepayment penalties — saving on total interest costs. Once repaid, you may apply for a new term loan if additional capital is needed for the next phase of growth.
✅ Early payoff option available — no penaltyPredictable, structured financing that lets you plan your cash flow with confidence and make major investments without disrupting operations.
Term loan rates and requirements vary significantly between online lenders, community banks, and SBA programs.
| Parameter | Typical Range | Notes |
|---|---|---|
| Loan Amount | $25,000 – $400,000+ | Higher amounts require stronger financials |
| Interest Rate (APR) | 6% – 30% APR | Banks: 6–15%; Online: 10–30%; SBA: 5–11% |
| Repayment Term | 3 months – 7 years | Longer term = lower payment, more interest paid |
| Payment Frequency | Monthly (some weekly) | Short-term loans may require weekly payments |
| Rate Type | Fixed or Variable | Fixed is most common for predictability |
| Min. Credit Score | 620 – 680+ | Online lenders: 580+; Banks: 680+ |
| Min. Time in Business | 1 – 2 years | SBA requires 2+ years |
| Min. Annual Revenue | $100,000 – $250,000 | Higher loan amounts need stronger revenue |
| Collateral | Often required for large amounts | Equipment or real estate for $100K+ |
| Origination Fee | 0% – 5% of loan amount | Deducted from loan proceeds at funding |
Term loans offer the best rates and largest amounts in business financing — but require more documentation and stronger qualifications.
Term loans work best for planned, high-ROI investments where you need a specific amount and can commit to a structured repayment schedule.
Lump-sum capital · Fixed payments · Apply in 2 minutes
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