Whether you’re looking to expand, purchase equipment, boost marketing, or open a new location, a term loan can give your small business the flexibility to invest in growth. Learn more about this type of financing to see if it’s a good fit for your unique business needs.
What is a Term Loan?
A term loan is one of the most well-known financing options for small business owners, traditionally available through bank lenders. You receive a total loan amount, called the principal, which you then repay over time through regular payments with interest. Depending on your specific loan agreement, these installments can be weekly or even daily, but are most commonly expected on a monthly basis.
What is a Long-Term Loan?
A long-term loan is a type of term loan that can be repaid over several years. This makes for one of the most affordable products on the market: with a longer period of time to repay the loan monthly payments are significantly lower.
SBA 7(a) loans are long-term loans secured by the US Small Business Administration. The government backs up to 85% of the loan amount so that lenders face less risk. Borrowers benefit from low costs resulting in low monthly payments that avoid using available cash flow to repay high-interest debt.
Through SmartBiz, you can secure a long-term SBA loan. Working capital SBA loans have a 10-year term. Commercial real estate SBA loans have a 25-year term. Both loans have low APRs and no prepayment penalties. You may have heard that these kinds of loans are document-intensive and difficult to obtain. That’s not true anymore. SmartBiz has streamlined the process so you can apply online from the comfort of your own home or business.
Many small business owners can obtain long-term loans for their business, as long as they can show that they’re financially healthy and can make timely interest payments. This is usually demonstrated by good personal and business credit, sufficient annual revenue, available cash flow, and other financial metrics.
At SmartBiz, we pride ourselves on our transparency when it comes to the loan application process. To empower business owners like you, we’ve created a series of educational content through SmartBiz Advisor . We break down the 7 key metrics lenders consider before granting a business applicant an SBA loan. Visit the SmartBiz Small Business Blog for information about each, as well as how you can improve your situation if necessary. In addition, visit SmartBiz University to find a course complete with the key topics about the lending process, based on our own rigorous training program for team members.
Looking to receive personalized recommendations and helpful insights to spark business growth? Get started with SmartBiz Advisor before you apply for a small business term loan. This free, AI-based tool will act as your Intelligent CFO and help you get the funds you deserve.
How to Apply
When you’re ready to apply for a term loan, SmartBiz is here to help. Pre-qualify in 5 minutes without any impact to your credit. Our online application will guide you through all the steps and match you with the trusted bank partner most likely to fund. Once your application is submitted, you can receive your funds in as quickly as 7 days. Our lending team will also provide you with the 5-star service our customers know and love.