Long Term Business Loans
Move your business forward with a small business line of credit
Select the amount you wish to borrow:
Choose your repayment term
How frequently do you want to make payments?
Apply for a credit limit up to $50,000
Get next-business-day funding after approval
Borrow any time through your online account
What Is a Long Term Business Loan?
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.
Collateral: a lender may want to know what tangible assets a business has that could cover the cost of the loan in case of default. This could be any property the business owns, such as real estate or equipment. It could also include the owner’s personal assets, such as a home. In some cases, a co-signer might be used. While this could help a small business owner obtain a loan, the co-signer would have to pay back the loan if the business fails to do so.
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.
Long-Term vs. Short-Term Loans
While long term business loans are typically used for major capital investments, short term busienss loans might be used to pay for lesser and more immediate expenses such as paying a vender or small equipment purchases.
The amount a business can borrow is more limited with a short term loan, but the loans can be easier to obtain and the approval process is usually much faster — sometimes within a day or so.
Short term loans tend to come with higher interest rates, but they’re paid back over much shorter time periods. If paid back on time, a shorter term loan can have a lower total cost than a longer term loan, where the payment period can extend for up to a decade or more.
Flexible Line of Credit from Headway Capital
Headway Capital can help you grow your business with a flexible line of credit from $5,000 to $50,000 to fill your long term borrowing needs. 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 borrow the amount you need (up to your credit limit), when you need it, to keep your business moving.