Business term loans to grow your business.

The classic way to boost your small business with monthly payments and access to funds in as little as 24 hours.

$
Applying is free and won't impact your credit*
Loan Amount
$5k–$2 million
Time to Fund
as soon as 24 hours
Loan Terms
6 months–10 years

Is a term loan right for you?

Pros of a business term loan:

Term loans can help grow your business by providing a predictable payment schedule, lower interest rates, and longer term lengths. With term loans, you can plan your finances more effectively, make accurate projections, and budget accordingly.

Cons of a business term loan.

While term loans can be a great boost for your business, the eligibility requirements can be more strict than other types of business financing. Lenders typically expect a solid credit score and a proven business track record.

How can I use my loan?

Small businesses can use term loans to cover working capital costs and invest in business expansion.You can use your loan to:

- Fund a business acquisition.
- Purchase or upgrade equipment and software.
- Hire new employees.
- Cover payroll gaps.
- Remodel your property.
- Refinance debt.

Business term loan comparison.

Lendio carefully selects the lenders in its marketplace and then works with you to find the best revenue-based financing for your unique situation. Read on for stats on each lender and what each lender is best at.
Lender/Funder*
Loan Type
Loan/Financing Amount
Min. Credit Score
Time to Funds
Funding Circle
Term loan
$25,000–$750,000
660
As soon as 3 days
Bankers Healthcare Group
Term loan
$25,000–$500,000
700
As soon as 3 days
Avana Capital (Lend Thrive)
Term loan
$25,000–$150,000
675
As fast as 24 hours
Camino Financial
Terml loan
$5,000-$150,000
620
As fast as 2 days
Dreamspring
Term loan
$34,000-$250,000
600
As fast as 1 day
Fundation
Term loan
$15,000-$250,000
680
1-3 days
Lighter Capital
Term loan
Up to $4 million
None
2-3 days
Salaryo
Term loan
$5,000-$500,000
680
Same-day funding

Funding Circle – Term loan

Funding amount
$25,000-$750,000
Term
6 months-7 years
Min Credit Score
660
Time to funding
As fast as 3 days

BHG – Term loan

Funding amount
$25,000-$500,000
Term
12 years
Min Credit Score
700
Time to funding
As fast as 3 days

Avana Capital (Lend Thrive) – Term loan

Funding amount
$25,000-$150,000
Term
5 years
Min Credit Score
675
Time to funding
As fast as 24 hours

Camino Financial – Term loan

Funding amount
$5,000-$150,000
Term
2-5 years
Min Credit Score
620
Time to funding
As fast as 2 days

Dreamspring – Term loan

Funding amount
$35,000-$250,000
Term
2-6 years
Min Credit Score
600
Time to funding
As fast as 1 day

Fundation – Term loan

Funding amount
$150,000-$250,000
Term
1-4 years
Min Credit Score
680
Time to funding
1-3 days

Lighter Capital – Term loan

Funding amount
Up to $4 million
Term
Up to 3 years
Min Credit Score
None
Time to funding
As fast as a few days

Salaryo – Term loan

Funding amount
$5,000-$500,000
Term
6 months-3 years
Min Credit Score
680
Time to funding
Same-day funding

Minimum requirements for a business term loan.

Credit score
600+
monthly revenue
$8K+
time in business
1+ year
Quickly estimate your funding options.
Time In Business
0 - 6 Months
6 - 12 Months
1 - 3 Years
3+ Years
Monthly revenue
Industry
Credit Score
Business type
Legal partnership
LLC
Corporation
Sole proprietor
Congrats--it looks like you qualify.*

Based on your business information you could qualify for up to $ 52,000 in funding

Funding amount *

$ 36,000 - $ 52,000

*Amount is an estimate only using the information provided Businesses like yours typically receive offers like these.
Compare your funding options today.
Apply now

Many businesses don't qualify for funding for all kinds of reasons. A few factors could include:

Not enough revenue
Not enough time in business
Credit score is too low

*Qualification criteria, rates, and other funding terms will vary depending on the type and location of your business, and upon other factors. This is not a guarantee of funding, and it should not be relied upon as an accurate assessment of the availability or terms of the represented funding products.

How much can I qualify for?

Not sure what you need or what funding options are best for you? Use our simple calculator to get a rough idea of your options with no commitment, and apply when you’re ready.

Four simple steps to funding.

Tell us about your business.

Answer a few simple questions and complete the application in minutes.

Submit your application.

We’ll present your application to our marketplace 75+ lenders. Applying is free and won’t impact your credit score.

Compare offers.

Find the funding option with the terms that best fit your small business goals.

Get funded.

Once you accept, funding can hit your bank account in as little as 24 hours.

12+ years of serving small businesses.

Get the answers and the funding you need with support all along the way.

$16+ billion

in small business funding facilitated in the last decade.

4.8 stars

21,000 Trustpilot® reviews.
50% repeat customers.

400,000+

total small business loans funded in the last decade.

FAQs

Find answers to some commonly asked questions about business term loans.

What is a business term loan?

A term loan provides a borrower with a lump sum of money upfront that is then repaid at regular intervals over a set amount of time, also referred to as the loan term. Interest rates on term loans can be fixed or variable.

What are some examples of term loans?

One of the best things about a term loan is that it can be used for a variety of funding needs. Here are some examples of how you can use your term loan:

Payroll gaps

You can use a small business term loan to cover a payroll gap you’ve got to cover. You might have one because your business is seasonal. Or you might have one because you had a rush of business and had to bring on new employees to help cover it all. Either way, you can use a term loan to pay.

Adding another business location

If you’ve got one brick-and-mortar business location that’s thriving, the opportunity to open another might be too good to pass up. You could use a term loan to help you cover the startup costs of your new location. Renovations, rent, and materials for running your business all cost money a term loan could help provide.

Marketing

Word-of-mouth advertising is great, but it only gets your business so far. You likely need to market your business at times and term loan funding can help you do that.

Acquiring another business

Another way term loans could help your business is if you’ve got the chance to acquire another business. If there’s one that comes on the market and would be the perfect addition to your existing business, don’t miss out. You can use a term loan to help acquire it.

What are typical term loan interest rates?

The interest rates for term loans tend to be lower than other kinds of quick financing. The exact rate will vary by lender and the loan terms. Don’t forget to add any origination fees or application fees to the total cost of the loan.

What can I use a small business term loan for?

Term loans are best used for one-off expenses like investing in equipment, real estate, or working capital. Because term loans can be approved relatively quickly, they are a great way for businesses to fund essential projects or expansions to grow their business long-term. If you need money for a big project with solid ROI potential, a term loan can be a good option.

What kinds of businesses are best suited for term loans?

Well-established businesses with a solid history of strong financials and healthy revenue are a good match for term loans. Lenders are looking for borrowers who can demonstrate reliable income and repayment through strong credit and financial history.

Newer businesses or startups with less than two years in business are unlikely to be a good match for term loans—they simply don’t have the financial history yet to prove they are a safe bet for lenders.

What are the pros and cons of a term loan?

Term loans have advantages and drawbacks—which loan is right for you will depend on your own business goals and how well you meet eligibility criteria. Weigh the pros and cons carefully to understand if a term loan is right for you.

Pros of term loans.

Predictable payment schedule

Term loans are lump sum funds with a set repayment schedule, which means you’ll always know when payments are due and how much is owed. This predictability makes it easier to plan your finances, make more accurate projections, and budget accordingly.

Lower interest rates

Long-term loans typically have lower interest rates compared to other financing options, making them a more affordable option for businesses. Additionally, because the loan is spread across a longer period, the monthly payments will generally be lower, resulting in less impact on cash flow from month to month. Plus, interest on term loans is tax deductible, putting more savings into your pocket.

Versatile short- or long-term financing options

Term loans offer flexible financing options for businesses, from short-term funding up to 18 months to longer terms anywhere from a few years to a decade or more.

Cons of term loans.

Inflexible payment schedule

The predictability of term loan payments can also be a disadvantage. Term loans have fixed repayment schedules and often have strict policies on early repayment. This means you must pay on time every month with little to no exceptions. And short term loans may have more frequent repayment deadlines with weekly or even daily payments. This can put a strain on a business if its cash flow is unpredictable.

Strict eligibility requirements

Because term loans typically deal with significant sums of money, lenders have stringent eligibility criteria. Borrowers should have an established business with strong finances and a good credit score.

Be prepared to share:

  • Credit history
  • Personal and business cash flow
  • Annual business revenue
  • Business plans

New businesses don’t have a long-established financial history to demonstrate secure cash flow and practices, so they are less likely to get approved.

What are the different types of term loans?

Term loans are generally classified into short-term loans and long-term loans.

Short-term loan

These short-term loans have a fairly self-explanatory name. They’re short-term, generally meaning they are repaid over 18 months or fewer.

Medium-term loan

These are like short-term loans but with a longer repayment period, usually between one to five years. They’re great if you need a bit more cash and more time to pay it back.

Long-term loan

These are the big ones! They’re for larger amounts and have terms that can last anywhere from five to twenty-five years. They’re perfect for big investments like buying a new building or launching a new product line.

How do business term loans work?

Business term loans are similar to personal loans. Let’s say you’re approved for a loan – you’d get a lump sum of cash upfront. Then, you’d pay it back over a set period, or “term,” with interest.

The great part? You can use this loan for any business expense. Need to buy equipment? Absolutely. Looking to expand your operations? Go for it. It’s all about helping you grow your business.

What are the steps to get a business term loan?
  1. Know your needs: First things first, you’ve got to understand what you need the loan for. It could be anything from expansion plans to inventory purchases. The key is to have a clear idea of why you need the loan and how much you need.
  2. Check your credit score: Lenders will look at your personal and business credit scores to assess your risk level. If it’s low, don’t worry. There are still options out there for you.
  3. Gather your documents: You’ll likely need to provide financial statements, tax returns, and a business plan. Make sure you’ve got all your paperwork in order.
  4. Compare lenders: Don’t just jump at the first offer you get. It’s important to shop around and compare terms from different lenders.
  5. Apply: Once you’ve chosen a lender, go ahead and submit your application. They’ll review it and make a decision.
  6. Close the deal: If approved, you’ll receive an offer. Review it carefully, ask any questions you might have, and if it all looks good – sign on the dotted line!

Remember, we’re here to help you through every step of the process. You’re not alone in this journey, and together, we’ll find the best solution for your business.

Ready for funding?

See what you can qualify for on the Lendio Marketplace.