Long Term Business Loans
Grow your business with a long term business line of credit
Select the amount you wish to borrow:
Choose your repayment term
How frequently do you want to make payments?
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 amount and lower interest and payment, compared to a short-term business loan. However, short-term business loans are usually paid back over much shorter time periods, so they can have a lower total cost than a long term loan. As with any business lending, you should compare the costs and terms carefully and find the one that works for your business.
There’s a variety of criteria lenders consider in granting long term business loans:
Cash and credit: lenders will examine your cash flows and operating expenses. Do you have a steady business income that will ensure timely payments? They’ll also consider your credit score.
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 credit.
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 backgrounds and history of the owner and any 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.
Headway Capital Lines of Credit
Headway Capital can help you grow your business with a revolving line of credit to fill your long term borrowing needs. You can borrow up to your limit and borrow more as you repay — without having to reapply. If qualified, you can choose a repayment term up to 24 months. With a Headway Capital line of credit, you can access it whenever you want — and when you request money, it’s delivered to your bank account by the next business day (so long as you have funds available). This gives you the ability to keep your business moving.