A business term loan is the most straightforward form of financing: you borrow a lump sum, then repay it over a fixed term with regular payments. Because the amount and schedule are set upfront, it's easy to budget — which makes it the go-to for one-time, planned investments.
When a term loan fits
- Expansion — a new location, build-out or hire-ahead.
- Large purchases — inventory buys, equipment, a project.
- Refinancing — consolidate costlier debt into one payment.
- Acquisitions — buy a business or a competitor.
Term loan vs. line of credit: a term loan is best for a specific one-time cost; a line of credit is best for ongoing or unpredictable needs. Many owners keep both.
Short-term vs. long-term
Short-term loans (3–18 months) fund fast and suit quick opportunities. Long-term loans and SBA loans stretch 3–25 years for lower payments on big investments. We match you to the term that fits the use.
Typical guidelines
| Requirement | Typical minimum |
|---|---|
| Time in business | 6+ months (2+ yrs for best rates) |
| Monthly revenue | $10,000+ |
| Credit score | Flexible — options across the range |
| Documents | Application + bank statements |
Frequently asked questions
What is a business term loan?
A lump sum repaid over a fixed term with regular payments — ideal for one-time investments.
Term loan or line of credit?
Term loan for a specific one-time cost; line of credit for ongoing or unpredictable needs.