Best Term Loans For Established Businesses
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Fast and Easy Process
Flexible Solutions
Recommended Options
BHG Financial Term Loan
Recommended
BHG Financial provides lump sum term loans with fixed repayment terms, ideal for business growth and long-term investments.
Funds Up to
$500,000
7-14 days
Closing
Monthly
Payment Frequency
15%
APR Starts at
12 years
months
Term Timeframe
4.9
Lightbox Lending Review
OnDeck Term Loan
Recommended
Get a one-time lump sum of cash with OnDeck's term loan and have the option to apply for more financing in the future.
Funds Up to
$250,000
Same day
Closing
Weekly
Payment Frequency
25%
APR Starts at
24 months
months
Term Timeframe
4.7
Lightbox Lending Review
iBusiness Funding Term Loan
Recommended
iBusinessFunding is one of the largest term loan lenders with their recent acquisition of FundingCircle USA. Secure efficient funding with loan sizes averaging
Funds Up to
$500,000
7-14 days
Closing
Monthly
Payment Frequency
16.99%
APR Starts at
7 years
months
Term Timeframe
4.2
Lightbox Lending Review
Biz2Credit Term Loan
Recommended
Biz2Credit offers competitive term loans specializing in high loan amounts with affordable terms and repayment periods.
Funds Up to
$500,000
1-2 days
Closing
Monthly
Payment Frequency
17%
APR Starts at
36 months
months
Term Timeframe
4.1
Lightbox Lending Review
Libertas Term Loan
Recommended
Secure the capital your business needs with Libertas' term loan solutions. They offer flexible options like bridge loans, gap funding, equipment financing, and working capital.
Funds Up to
$2,500,000
7 days
Closing
Monthly
Payment Frequency
16.99%
APR Starts at
2 years
months
Term Timeframe
3.8
Lightbox Lending Review
Idea Financial Term Loan
Recommended
Idea Financial is a direct lender offering business term loans and lines of credit to business owners.
Funds Up to
$275,000
1-2 days
Closing
Weekly
Payment Frequency
19%
APR Starts at
36 months
months
Term Timeframe
3.55
Lightbox Lending Review
Quantum Term Loan
Recommended
Fundation (Quantum as of Jan 2025) offers business term loans and revolving lines of credit to businesses in the US.
Funds Up to
$250,000
2-3 days
Closing
Monthly
Payment Frequency
19.99%
APR Starts at
4 years
months
Term Timeframe
3.3
Lightbox Lending Review
Not quite what you're looking for?
Explore other options tailored to your needs! Whether you're searching for smaller loans, different repayment terms, or specialized funding solutions, we've got you covered.
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SmartBiz SBA 7(a)
Get the capital you need to grow through SBA Loans, Bank Term Loans, Lines of Credit, and more fast and flexible financing options.
Funds Up to
$500,000
Closing
1-2 Weeks
Apply Now
Hide Details
Payment Frequency
Monthly
APR Starts at
10.75%
Term Timeframe
10 Years
Lightbox Lending Review
4.7
LoanBud SBA Loan
LoanBud is a SBA marketplace that covers all use cases for financing such as working capital, busienss acquisitons, real estate purchases, startups and so much more!
Funds Up to
$5,000,000
Closing
2-3 Weeks
Apply Now
Hide Details
Payment Frequency
Monthly
APR Starts at
10.75%
Term Timeframe
10 Years
Lightbox Lending Review
4.5
BayFirst Streamlined SBA
As one of the nation’s top lenders for Small Business Administration loans, BayFirst’s small business lending division, CreditBench, offers a wide range of lending options for small business owners.
Funds Up to
$5,000,000
Closing
1-2 Weeks
Apply Now
Hide Details
Payment Frequency
Monthly
APR Starts at
10.75%
Term Timeframe
10 Years
Lightbox Lending Review
4.4
Stearns Bank SBA 7(a)
Stearns Bank offers SBA 7a financing for working capital, business acquisitions, and even startups!
Funds Up to
$5,000,000
Closing
2-3 Weeks
Apply Now
Hide Details
Payment Frequency
Monthly
APR Starts at
10.75%
Term Timeframe
10 Years
Lightbox Lending Review
4.3
Celtic Bank SBA 7(a)
Celtic Bank is an SBA Preferred Lender that offers these SBA 7a loans up to $5,000,000.
Funds Up to
$5,000,000
Closing
2-3 Weeks
Apply Now
Hide Details
Payment Frequency
Monthly
APR Starts at
10.75%
Term Timeframe
10 Years
Lightbox Lending Review
4.2
Newity SBA 7(a)
Newity offers fast approvals for SBA 7a loans and specializes in those under $150,000
Funds Up to
$5,000,000
Closing
2-3 Weeks
Apply Now
Hide Details
Payment Frequency
Monthly
APR Starts at
10.75%
Term Timeframe
10 Years
Lightbox Lending Review
4.2
LendingClub SBA 7(a)
LendingClub is a nationwide preferred SBA lender, which means they can offer fast decisions and faster closings for SBA 504 & 7a loans.
Funds Up to
$5,000,000
Closing
2-3 Weeks
Apply Now
Hide Details
Payment Frequency
Monthly
APR Starts at
10.75%
Term Timeframe
10 Years
Lightbox Lending Review
3.9
Ready Capital SBA 7(a)
An SBA 7(a) loan from Ready Capital is a government-backed small business loan that offers low interest rates and long repayment terms.
Funds Up to
$5,000,000
Closing
2-3 Weeks
Apply Now
Hide Details
Payment Frequency
Monthly
APR Starts at
10.75%
Term Timeframe
10 Years
Lightbox Lending Review
3.7
Not quite what you're looking for?
Explore other options tailored to your needs! Whether you're searching for smaller loans, different repayment terms, or specialized funding solutions, we've got you covered.
Find More ProductsSimple Financing for Your Business Needs
Understanding Your Options
Term loans are a popular financing option for small businesses seeking a lump sum of capital with a fixed repayment schedule. They offer predictability and stability, making them suitable for various purposes, from purchasing equipment to consolidating debt. Let's dive into the world of term loans and explore how they can benefit your business.
What is a Term Loan?
A term loan is a traditional loan where you receive a lump sum upfront and repay it with regular, fixed payments (typically monthly) over a set period. These loans offer clear terms and predictable payments, making budgeting and financial planning easier.
How Does a Term Loan Work?
The term loan process is generally straightforward:
Application
You'll submit a loan application to a lender, providing information about your business, financial history, and the intended use of funds.
Approval
Once approved, you'll receive the loan funds in a lump sum.
Funding
Once approved, you'll receive the loan funds in a lump sum.
Repayment
You'll make regular, fixed payments over the agreed-upon loan term.
Application
You'll submit a loan application to a lender, providing information about your business, financial history, and the intended use of funds.
Approval
The lender reviews your application and assesses your creditworthiness and ability to repay.
Funding
Once approved, you'll receive the loan funds in a lump sum.
Repayment
Specialized term loans may be available for specific purposes, such as equipment financing or commercial real estate loans.
Types of Term Loans
Short-Term Loans
Typically repaid within one to three years, suitable for short-term needs or smaller investments.
Intermediate-Term Loans
Repaid over three to five years, offering more flexibility for larger investments or expansion projects.
Long-Term Loans
Repaid over five to ten years or more, often used for significant investments or real estate purchases.
Other Term Loan Variations
Specialized term loans may be available for specific purposes, such as equipment financing or commercial real estate loans.
Tips for Securing a Term Loan
Build a Strong Credit History
A good credit score demonstrates your financial responsibility and increases your chances of approval.
Prepare a Detailed Business Plan
A comprehensive business plan showcases your business goals, strategies, and financial projections, giving lenders confidence in your ability to succeed.
Demonstrate Strong Financials
Provide lenders with organized and accurate financial statements, including tax returns, bank statements, and profit and loss statements, to demonstrate your financial stability and ability to repay the loan.
Clearly Explain the Loan's Purpose
Lenders want to understand how you'll use the loan funds. Clearly articulate the purpose of the loan and how it will benefit your business.
Pros & Cons of Term Loans
Evaluate the advantages and disadvantages to determine if a term loan aligns with your needs:
Pros
- Predictable Payments
Fixed monthly payments make budgeting and financial planning easier.
- Fixed Interest Rates
Interest rates remain the same throughout the loan term, providing stability and making it easier to forecast your expenses.
- Build Credit
Timely repayments on a term loan can help improve your business credit score.
Cons
- May Require Collateral
Some lenders may require collateral (real estate, equipment, etc.) to secure the loan.
- Can Be Difficult to Qualify For
Lenders typically have specific eligibility criteria related to credit score, time in business, and financial performance.
- Potential for Higher Interest Rates
Depending on your creditworthiness and the lender, interest rates on term loans can sometimes be higher than other financing options.
Pros
- Predictable Payments
Fixed monthly payments make budgeting and financial planning easier.
- Fixed Interest Rates
Interest rates remain the same throughout the loan term, providing stability and making it easier to forecast your expenses.
- Build Credit
Timely repayments on a term loan can help improve your business credit score.
Cons
- May Require Collateral
Some lenders may require collateral (real estate, equipment, etc.) to secure the loan.
- Can Be Difficult to Qualify For
Lenders typically have specific eligibility criteria related to credit score, time in business, and financial performance.
- Potential for Higher Interest Rates
Depending on your creditworthiness and the lender, interest rates on term loans can sometimes be higher than other financing options.
Finding the Right Lender for Term Loans
Choosing the right lender for your term loan is crucial. Compare interest rates, fees, repayment terms, and customer service from different lenders. Consider their experience with small business lending and their understanding of your industry. Don't hesitate to ask questions about their process, turnaround time, and any prepayment penalties.