A business term loan provides a lump sum that you repay over a defined schedule. It can help fund a planned investment when you can reasonably forecast how the payments will fit your cash flow. Compare the full cost and obligations with the expected business benefit before borrowing.
Funding range
$10,000–$500,000 advertised program range. Your approved amount depends on underwriting.
Term options
6–60 months, depending on the available program and offer.
Revenue minimum
$25,000 in monthly business revenue is a starting requirement, not an approval guarantee.
Fixed and Variable Rates: Know the Difference
A fixed interest rate stays the same during the agreed term. A variable rate can change according to the index and adjustment rules in the agreement. This page focuses on fixed-rate term financing; ask the team which structures are currently available. Payment frequency, amount, and any final balloon payment must be confirmed in your written offer.
Review the interest rate, applicable APR or cost disclosure, origination and closing charges, net funds received, total scheduled payments, late charges, and any security or guarantee. A longer term may reduce each payment while increasing total interest. The lowest payment is not necessarily the least expensive offer.
When a Term Loan May Fit
Consider term financing for a defined purchase, expansion, renovation, or other permitted business purpose with a repayment plan. Match the term to the useful life of what you are funding. Review use-of-funds restrictions in the agreement. Borrowing to cover a recurring operating loss can create a larger payment burden without solving the underlying problem.
Starting Requirements and Documents
- At least one year in business and $25,000 in monthly revenue.
- A starting credit score guideline of 600; the complete credit and cash-flow review still matters.
- A U.S.-based business with an active business bank account and no active bankruptcy under the stated program guidelines.
- A signed application and four recent complete business bank statements.
Requested amounts, business history, industry, existing debt, and intended use affect the review. The team may request tax returns, financial statements, debt schedules, identification, or ownership records. Requirements and available terms can vary by program.
How to Apply and Review an Offer
- Start the application with accurate business and contact details.
- Gather the required statements and disclose existing loans or advances.
- Respond to verification requests and ask your contact for the next step.
- Compare the written offer's net proceeds, cost, repayment schedule, liens, guarantees, and early payoff terms.
- Complete closing requirements. Approval and funds availability depend on review and processing.
Compare Other Funding Structures
A business line of credit may suit recurring access needs; an equipment financing arrangement is tied to an equipment purchase. A merchant cash advance has a different contractual structure and cost presentation. Ask about product fit, not just the amount available.
Speak With a Financing Specialist
Use our contact page to explain the intended purchase, amount requested, and timing. Avoid entering account numbers or other sensitive financial details in a general message. Ask who the provider and servicer will be and how you can track outstanding requirements.
Frequently Asked Questions
What is a business term loan?
It provides a lump sum repaid on an agreed schedule over a defined term. The agreement specifies interest, fees, payment frequency, security obligations, and other conditions.
What amounts and terms are available?
The advertised program range is $10,000 to $500,000 over 6 to 60 months. An actual offer depends on underwriting and current program availability.
What is the minimum monthly revenue?
The starting monthly business revenue requirement is $25,000. Meeting this or another minimum does not guarantee approval.
Which documents should I prepare?
Prepare a signed application and four recent, complete business bank statements. Additional records, identification, ownership information, or verification may be requested. Use the team's approved secure channel for financial documents.
Can I repay early without a penalty?
Check the specific agreement for prepayment charges, minimum interest, and payoff calculations. Ask for a written payoff quote; early payment does not always reduce every cost.
Is collateral or a personal guarantee required?
That depends on the program and underwriting. Review any lien, collateral, personal guarantee, and default provisions before signing.
Will applying affect my credit?
Ask which business or personal credit checks are required and when. A soft inquiry and a hard inquiry have different effects; do not assume every stage is a soft check.
How quickly will I receive funds?
Timing depends on the completeness of the file, underwriting, closing conditions, and payment processing. Ask your contact for an estimate for your file; approval or same-day funding is not guaranteed.
Does a loan automatically build business credit?
Credit impact depends on reporting practices and payment history. Ask whether the provider reports to business credit bureaus; no score increase is guaranteed.
What if my application is declined?
Ask which issue can be clarified and whether additional genuine records or a different product could support a new review. Avoid repeated borrowing applications without understanding the reason for the outcome.
Availability, pricing, approval, and funding timing depend on the program and underwriting. Review your written offer and agreement before accepting financing.