New borrowers will have to supply an application where underwriting will verify experience. You will also need to have the ability to pay back the loan and provide P&L statements from the past year.
What is a Traditional Term Loan?
A term loan is a like a “normal” business loan. Generally, term loans provide a fixed payment over 1 to 5 years and are normally backed by collateral such as a car or another tangible asset. They can also be used for a wide range of business purposes.
What Types of Businesses is it Good For?
Term loans are forms of debt financing. Business owners can use them to acquire or fund expansions, cover working capital expenses, gain financial assistance or improvement, and a wide range of other business activities. These types of loans are provided by both traditional banks and non-traditional lenders. Any business that has been in operation for more than two years with good credit can utilize a term loan.
What are the Minimum Requirements?
Generally, most lenders will consider your credit score, time in business, and collateral to determine whether or not the business owner will be able to get the loan. It is in the best interest of the business owner to have excellent credit, bulletproof P&L statements, and a record of its bank statements.
How Much Will a Traditional Business Loan Cost?
Traditional Term Loan Calculator
Term loan rates range from seven to thirty percent. Typically, these loans have fixed interest rates and fixed monthly payments. This structure provides the same payments over the life of the loan and you will know exactly when the loan will be paid off.
Why Use Lendio?
Lendio’s mission is to empower your business by making small business loans simple through options, speed, and trust. Whether you are looking for an acquisition loan or a term loan, Lendio offers hundreds of different loan products from a variety of lenders. Finding out which business loan is best for you is why we’re here.
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