What Are Term Loans for Small Businesses?
A term loan is for traditional businesses in the United States and this type of loan is a lump sum of money, has a fixed interest rate for a fixed period of time and is repaid via regular monthly repayments. The reason theses are called term loans is because its a set repayment period. This repayment period could be five to seven years. The longer repayment period will keep payments lower and increase your businesses cash flow while the loan helps your business grow.
Many of the small businesses that come to us for these types of loans need them usually for a specific investment for their business. They have a need for cash because of an opportunity, expansion or a major purchase that will benefit their business.
If you are looking for capital and want a term loan that can be affordably paid back in 5 – 7 years, then contact us here at Commvestor Funding to Get details, rates and terms.
Utilizing a Small Business Term Loan
Use the funds for anything that your business is in need of...
Who Can Qualify for a Term Loan?
All sorts of business are able to apply to and get qualified for a tradition term loan. As long as your company has been in business a while and is generating good income. A personal credit rating of 650+. Contact us for more details.
Established companies in any industry, as the purpose of funds don't matter. Use the money for what you think is best for your company. You are the CEO, you must make the best decisions for your company.
High Funding Approval Rate!
The criterion for our funding program is simple and allows more term loan approvals based on the qualified applications we receive.
When you speak with one of our loan experts, we will help you find the right loan product you qualify for.
Small business term loans vary because the maximum loan size, term length and interest rates are based on the revenues of a business and the credit rating.
Certainly you may have heard of short term loans or funding programs where credit score is not as import as the business’s cash flow, however with the term loan program the credit score and business’s financials are important factors.
How to Get Started?
Well you could go to your local bank, but I can assure you that you are going to have to set your expectations for a long and tedious loan process. Be prepared to submit a lot of documents to them too. Banks are selective in who they lend cash to.
Our intake process is much simpler and is streamed lined. Pre-approvals are same day after an application is submitted along with some basic documentation.
Term Loan Approvals are fast. Get your funding estimate in a few hours. Enjoy the convenience of not needing to provide a lot of financial statements or collateral or when pre-qualifying for our funding programs.
How Do Term Loans Work?
Business loans provide an opportunity for a small business owner to grow. This extra money can be used for anything like ordering more inventory, purchasing equipment or even needing to meet payroll.
Is this type of funding affordable? If your business produces good revenue, good personal credit and in business 2 years, you should be able to qualify for a good interest rate.
There are no surprises or anything unexpected with this type of small business financing. The funding you receive is set at a predetermined interest rate. The money is paid back over a set amount of time, generally 5 to 7 years with this program and with fixed monthly payments.
When to Use a Term Loan?
Chances are you may need funds for the purchase of something big for your business.
The small business loans can help companies out there with a source of working capital, inventory and equipment purchases, refinancing other business debt, having access to money to pay payroll, taxes or anything else you have a need for.
The best way to use the money from a term loan for small businesses spend that money creating more revenue. Borrowing money comes at a cost. Plan ahead before taking this loan because you should ask yourself this... Will I come out from this term loan with more money than when I started it?
Use this money the right way and let it take your business to the next level. It’s perfect for opening new locations, marketing campaigns, and getting new equipment.
Keep this in mind... A term loan is predictable. You will know what your monthly payment is going to be, how much needs to be repaid monthly and for how long. Knowing these numbers can help you mange your cash flow and your business.
Repayment and Cost of the Loan
When you get qualified, lets see what happens in this example when you get funding.
Let’s say this is your offer: The lender is offering $25,000 and the interest rate is at 12% for a five year term.
Since the term loan is 5 years the monthly payment amount is going to be about $556
Term loans are amortized. The monthly payments included interest. The interest is not paid in equal parts nor is the amount you borrower (the principal) from month to month. When a loan is amortized this means that more of the interest is paid early on in a loan. More of the principal is paid is later on during the term. It’s the same for auto loans and home mortgages too, as you may already be aware of. That’s how the lenders make their money and why they lend it!
The Truth About Term Loans – Before you begin this process...
Yes, these are real small business loans that need to be paid back.
These are true business term loans available to qualified applicants and the loan amounts range from $25,000 to $350,000. Monthly payments. APR presentation of cost and multi year terms (5 – 7 years) for the loan product offered on this webpage.
This Term Loan is NOT:
- A merchant cash advance
- A short term loan (like 6 months to a year)
- A rate factor cost
- Bait and switch into a MCA – merchant cash advance
- 1 day funding
- An actual business loan
- A way to grow your business not hurt it
- A way to refinance short term business debt into a manageable monthly payment
- A way to grow your business not hurt it
To Get Approved for This Term Loan, The Borrrower Will Need:
- At least a 650 FICO, personal
- At least 3 years in business
- Profitable on taxes and financials
- Ability to furnish 2 years of business returns
- Ability to furnish last filed personal return
To Get started, Contact Us Now