- Amount
- $10,000 – $15 million
- Term
- 1 – 25 years
- Speed
- As fast as 24–72 hours
A term loan is the most conventional way to borrow: you receive the full amount at closing and repay it in regular instalments until the balance is gone. Because the payment never moves, it is the easiest facility to plan around, and it is usually the cheapest structure a business can qualify for.
Shorter terms suit a defined project with a quick payback. Longer, fully amortising terms suit real property, an acquisition, or refinancing a stack of expensive short-term debt into one payment you can actually forecast.
Commonly used for
- Expansion into a new location or line of business
- Acquiring another business or a book of accounts
- Refinancing higher-cost short-term debt
- Owner-occupied property purchases
- Large one-time capital purchases
What it generally takes to qualify
- At least one year in business
- Around $15,000 or more in monthly revenue
- A credit score of roughly 500 or better
Guidelines, not hard cut-offs — tell us the situation and we will tell you where it stands.
Questions
How is a term loan different from a line of credit?
A term loan is drawn once, in full, and repaid on a set schedule. A line of credit can be drawn, repaid and drawn again. If you know the exact amount you need and when you need it, a term loan is almost always the better structure.
Are there prepayment penalties?
It depends on the lender and the term. Ask before you sign — on longer facilities the prepayment terms matter more than a small difference in rate.
Is collateral required?
Smaller and shorter facilities are often unsecured or secured by a general lien. Larger and longer-dated loans are typically secured by the asset being financed.
Related products
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