
LONG-TERM
Term loans are a common form of long-term business funding. These loans allow you to get a lump sum of cash upfront to invest in your business and repay with interest over a predetermined time period. This is best for businesses looking to expand that have good personal and business credit along with strong business revenue. The funding times for term loans are typically within two days to a week depending on the amount requested.
Pros:
-
Weekly or monthly repayment schedules
-
Qualify for higher loan amounts
-
Good for long-term capital needs
Cons:
-
Generally a more stringent application process during the loan review
-
Loan approval may require some type of collateral or a personal guarantee
-
Longer time in business usually required
Best for:
-
Businesses looking to grow and expand
-
Business owners with good credit who can't wait for longer funding options such as with SBA loans or equity financing
-
A preferred alternative to equity financing
