What it is

A term loan is the most traditional form of business financing: you receive a lump sum upfront and repay it, plus interest, in fixed installments over a set period — anywhere from a few months to several years. Rates can be fixed or variable depending on the lender and your qualifications.

Because the payment schedule is fixed and known from day one, term loans are easy to budget around, which makes them a strong fit for planned expenses like equipment purchases, hiring, inventory, or expansion into a new location.

Best for

  • Businesses with a specific, planned use of funds
  • Owners who want predictable, fixed payments
  • Equipment purchases, hiring, inventory, or expansion
  • Businesses that need funding faster than an SBA timeline allows

Requirements

  • Minimum 1 year in business
  • Minimum credit score around 600+
  • Minimum $15,000 in average monthly revenue
  • Last 4 months of business bank statements

Have a clear plan for the funds?

A term loan gives you a predictable payment so you can plan ahead with confidence.

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