Term Loan

A term loan is a traditional, long-term financing option that provides a lump sum of capital upfront, repaid over a fixed period with consistent monthly payments. This type of financing is well-suited for businesses planning structured growth initiatives such as renovations, expansion, or inventory purchases.

How a Term Loan Works

• Businesses with strong credit and solid financials may qualify for long-term financing at the most competitive rates.

• Funds are issued as a one-time lump sum.

• Repayment is made in equal monthly installments.

• Interest rates typically range from 7.9% to 24.99%.

• Loan terms generally span 1 to 5 years, depending on credit strength and use of funds.

What Determines Rates and Approval

Loan pricing and eligibility are evaluated based on:

• Industry type

• Intended use of the loan proceeds

• Credit profile

• Overall financial health and profitability of the business

Questions to Consider

Before applying, consider:

• Are you currently carrying any existing term loan debt?

• Have you successfully paid off term loans in the past?

• What specific purpose will the loan funds be used for?

Documentation Typically Required

To complete the underwriting process, lenders commonly request:

• 6 months of the most recent business bank statements

• Two years of business tax returns and one year of personal tax returns

• A current debt schedule

• Personal financial statements updated within the last 60 days

  • Balance sheet and P&L are typically required for transactions over $800,000

Helpful Things to Know

• Term loan approvals generally take longer than alternative financing options, often 2–3 weeks.

• This product typically offers the lowest rates available compared to other business funding options.

• If you do not qualify initially, the reasons can be identified and a clear plan can be outlined to help position your business for approval in the future.