A traditional term loan is probably the most common form of business loan, so it’s pretty easy to understand. You borrow a lump sum of money—usually for a specific purchase you’re making for your business—and pay the loan back over a set term, most often at a fixed interest rate.
7% - 30%
1 - 5 Years
25,000 - 500,000
Set payment schedule
Long repayment schedule
Relatively low interest rates
Used for a wide variety of purposes
Lower monthly payments than short-term loans
Plenty of businesses can qualify for a traditional term loan—as long as you’ve been in business for a short while, have a good credit score and are generating revenue.
Not all term loans are the same though: the interest rate, length of the term and maximum loan size depends on your business revenues and credit rating.
Since traditional term loans have longer repayment periods than short-term loans, your business’s financials and credit score are more important.
Term loans come with a wide variety of structures and terms, from short term loans with daily payments to five years with monthly payments. At Lendtek, we can structure the best loan for your needs.
TIME IN BUSINESS
2 Year Minimum
Applying Does Not Affect Your Credit!
Disclaimer: The above information is provided as a guideline. Some loan conditions may fall outside of these parameters. We recommend that you speak with one of our advisors before taking any course of action based on this information.
WHAT IS A TERM LOAN?
A traditional term loan is a lump sum of cash you pay back with regular payments, plus interest, over a fixed period of time. This type of loan is extremely flexible and can be used for almost any business purpose. A mortgage is the best known example of a term loan.
As Little As 48 Hours
Pros & Cons
Lengthy application process
May have early prepayment penalty
Most Businesses Who Qualified Had:
What Documents Will I Need To Apply?
Voided Business Check
Profit and Loss Statements
Business Tax Return
Personal Tax Return
Business Debt Schedule