Term Loans

Amount:

$20,000 – $350,000

Term:

1 – 4 Years

Amount:

Up to $200,000

Payment Options:

Daily, Weekly or Semi-Monthly Payments

Amount:

$5,000 – $150,000

Term:

1 – 3 Years

Amount:

85% – 95% of Invoice Value

Actual offers vary based on your application information and lender.

Business Term Loans

Business term loans are a source of commercial financing many business owners look for when they have a specific need for a business loan. They are good for that reason, as the terms of these loans are generally flexible to a business’s needs and vary as such. Term loans are good for larger purchases, such as buying equipment or renovating your facility, however, they can sometimes be difficult to apply for and obtain.

Is a Business Term Loan Right for My Business?

Business term loans can be a great option if you have the right combination of time, patience, preparation and business creditworthiness. However, even if you do have all of those characteristics, a business term loan might not be the best option for your business. Compare term loans with some other popular small business funding options with this guide below.

Description

Pros

Cons

Often Good For

SBA Loan

Description

The Small Business Administration guarantees a portion of these loans. This way, if a business defaults on the loan, the lender doesn’t have as much to lose.

Pros

Usually comes with great rates

Cons

  • Long and complex application process
  • Difficult to obtain approval

Often Good For

Businesses with a good amount of proven success and well-established business credit

Merchant Cash Advance

Description

A small business “sells” a portion of their future credit card sales to a lender to acquire a cash advance.

Pros

Fairly reliable method for receiving funds

Cons

  • Depending on the lender and timing, the cost can be more or less expensive than any other loan offering
  • Rate determined as a “factor rate,” not APR

Often Good For

Restaurants and other businesses that rely on daily sales and have seasonal ups and downs

Business Line of Credit

Description

A lender approves you for an amount of money that can be drawn on whenever necessary.

Pros

  • You only pay interest on the funds you take out
  • Flexible; withdraw when you need and repay when you can

Cons

  • Business owners may draw more than they need
  • Some lenders only grant lines of credit to businesses with at least two years experience

Often Good For

Businesses who have intermittent cash flow needs, and need access to working capital

Business Term Loan

Description

A term loan is a lump sum of cash you pay back, plus interest, over a fixed period of time.

Pros

Longer payment terms and generally better interest rate than short-term loan

Cons

Some companies may charge penalty fees for early repayment

Often Good For

Business needs that require a specific amount of money that can be paid in a specific amount of time

What Does The Business Backer Offer?

The Business Backer is your one-stop shop for business funding. We’ve offered customized business funding solutions since 2007, and we work with our clients to find the best financing options available.

Whether you need funding for a one-time project or ongoing capital requirements, we can help find the financing options that fit your business’ short-term and long-term goals. We offer a fast and simple application process, and you may receive funds in as little as 48 hours. There are no fees or down payments required for applying. Apply now or speak to a funding advisor today!