Long Term Business Loans

Grow your business with a long term business line of credit.

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$26,000
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$424.00 Apply Now

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*This business loan calculator assumes a monthly interest rate of 3.3%. Your interest rate & credit limit may vary based on your application information.

Long Term Business Loans

Long-term business loans can provide your business with financing that can be repaid over several years. Business owners usually use it to meet long-term financing needs such as construction, equipment financing or purchasing an existing business. Terms usually start at two years or more, although 10 to 20 years is more likely, with amounts from $25,000 to $200,000.

The benefits of long-term business loans typically include larger funding amounts and lower interest rates and payments, compared to short-term business loans. However, short-term business loans are usually paid back over much shorter periods of time, so they can have lower total costs than long term loans. As with any business lending, you should compare the costs and terms carefully and find the one that works for your business.

Criteria for Long Term Business Loans

Cash and credit

Lenders will examine your cash flow and operating expenses. Do you have a steady business income that will ensure timely payments? They’ll also consider your business credit.

Your track record

An established business with years of success will usually have an easier time obtaining long term business loans, whereas a relatively new startup can find it harder to obtain business funding.

Your stake in the business

Lenders will want to see that an owner is personally invested in a business before granting a loan. A lender might ask whether the owners could invest their own money in the business rather than seeking a loan.

What and why

The lender will want to know what this money is used for and why it’s needed, whether it’s for purchasing equipment or expanding business space.

Business plan

What are your goals for the business and how will you achieve them? Are your goals attainable? The lender may also want to know the owner’s background and history, as well as that of any other key players involved in reaching these goals..

Insurance

Just like with a home mortgage, lenders want to make sure a business is properly insured in case of fire, flood or similar losses.

Options for Long Term Business Funding

Line Of Credit

Line of Credit

A business line of credit is an arrangement between a lender and a customer that establishes a maximum credit limit the business can borrow from. The business can withdraw funds on the line of credit at any time, as long as they do not exceed the maximum limit.

SBA

SBA Loans

SBA loans aren’t actually given out by the U.S. Small Business Administration. They’re loans issued either by a bank or another lending institution that is guaranteed by the SBA. The “guaranteed” aspect means the SBA will repay the lender, up to a certain amount, if the loan holder defaults on their payments. This means that while getting approved by the SBA can be a lengthy and challenging process, but if approved, the loan usually comes with favorable rates and terms.

Credit Cards

Business Credit Cards

Business credit cards are very similar to personal credit cards, in that the individual’s personal credit will be checked as part of the credit approval process (in addition to the business’s credit ranking). The differences lie in the features offered and how your credit is affected.

Invoice Factoring

Invoice Factoring

Invoice factoring allows a business to sell its invoices to a third party (called a factor) at a discount. The factor then provides an advance on payments for those outstanding invoices. This way, businesses can have the working capital to reinvest in operations and growth sooner than they could if they were waiting for their customers to pay them.

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