Business Term Loans

Explore term loans and find the funding solution that’s right for your small business.

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Finding the right funding solution is a critical step for small business owners. With all the loan options out there, it can become complicated. At National Funding, we want to make sure that our customers are equipped with the information they need to succeed.

Term loans are one such funding solution that can work for businesses in a wide variety of industries. Learn more about term loans and whether they match your businesses needs below.

What is a Term Loan?

A term loan is a loan for one lump sum of capital. The borrower then repays the lump sum over a scheduled period of time along with interest. Interest rates on term loans can be fixed or variable depending on the loan agreement.

Business term loans are very common and are often the main type of loan that comes to mind when people think of the word “loan.” They come in many shapes and sizes, ranging in amounts from $5,000 to $5 million, and can vary in length from less than a year up to 25 years or more with a range of interest rates, depending on the loan. Term loans can be used for anything, but are often used for equipment financing, working capital, or real estate expenses.

At National Funding, we understand that debt can end up hanging over a small business for years and years. That’s why we offer short term loans so that small businesses can get the capital they need and have nothing holding them back as they move forward.

What Are the Requirements for a Term Loan?

Credit Score

Credit scores are often used to give lenders more information about the borrower. At National Funding, we recognize that a credit score doesn’t tell the whole story. Traditional banks often have strict credit score requirements for those applying for a business term loan. Even when those qualifications are met, accessing funds from banks can take a long time and require a large amount of paperwork.

At National Funding, we look at your last three months of bank statements along with your credit score to see if you qualify for a loan from us. We keep our application short and simple. Apply now and see how much you qualify for.

Collateral

Term loans also vary in collateral requirements. Secured loans involve using personal or business collateral to ensure that the loan is repaid. Securing a term loan with collateral runs the risk of losing that asset and can be risky for the borrower. Unsecured loans are riskier for the lender so they often involve higher interest rates.

Alternative lenders like us have a higher tolerance for risk than traditional banks. That’s why we offer unsecured business loans for small business owners. No collateral is required.

Business Maturity

Lenders offering term loans also look at the age of your business to determine if you qualify for a term loan at all. Better rates are often offered to older businesses with a longer track record. This is also a factor that assures your usual lender that there is less risk for them.

As a less risk-averse lender, we at National Funding are happy to help provide funding to small businesses as young as one year old.

What Type of Loan is Best For Your Growing Business?

Short-Term Small Business Loans

Short Term business loans work best for businesses that are in need of a one time lump sum for a large purchase. This type of loan can be used effectively by small businesses that are growing by opening up a new location or are buying equipment.

Short-Term Business Line of Credit

Business lines of credit provide a rolling cash infusion for small businesses. This type of loan can be effective when investing in needs with a slower rate of return on investment such as hiring new employees for a second location.

Working Capital Loans

Working capital loans are best used to finance everyday business operations like wages, inventory, taxes and a range of other costs that keep your business going day-to-day, and are best for organizations that could use more flexibility with their funds. Working capital loans from National Funding can provide your business up to $400,000 to support your needs right now, quickly and with minimal paperwork.

We’re confident that we can help you find the perfect funding solution for your business needs.

What Customers Are Saying

Ron Beatty, Owner

Beatty Lawn & Tree Service

Knowing how hard it had been trying to secure small business loans in the past, this family-owned business sought out National Funding thanks to its reputation for accessible, hassle-free loans. Being able to purchase new, reliable equipment was a critical component for this growth business, and National Funding helped them make it happen.

How Do I Apply for a Loan From National Funding?

It’s easy. Securing the funds you need to keep your business running smoothly is simple with National Funding. Our application process is quick and secure. It takes just minutes to apply.

After applying, one of our friendly Funding Specialists will connect with you so we can learn more about you and your business. Your Funding Specialist can help answer any questions you have about the loan process and help you discover which loan is the right fit for your business.

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888.733.2383

Frequently Asked Questions

Deciding what is best for small business can be tricky, but it doesn’t have to be intimidating. Here are some frequently asked questions to consider as you explore loan options. For when you have additional questions, our Funding Specialists are here to help.

How do I know if a term loan is right for my business?

Short term small business loans from National Funding can provide you with the funding you need to help grow your business and are best for investments that provide a return on investment more immediately like new equipment or a second location. Our Funding Specialists are here to help you make sure you have the funding solution that’s right for you and can help you discover if a short term loan is best.

What is the difference between term loans from traditional banks versus an online lender?

Term loans from a traditional bank can be hard to qualify for. Banks are commonly very risk-averse and so they require a high credit score, collateral, and plenty of proof that you will be able to pay the loan back on time. The lower risk often leads to lower interest rates offered on bank loans, but just applying, let alone can be a long and difficult process, especially for small business owners. Online and alternative lenders like National Funding can have higher interest rates for term loans, but they are much easier to get approval for and there are options for borrowers with bad credit or even loans with no collateral involved. At National Funding, we’re happy to provide high approval rates, an easy application process, quick approval time, and fast funding in as little as 24 hours.¹

What are the lengths of term loans?

Short-term loans have term lengths less than a year, and are often paid off on a daily or weekly basis. Intermediate term loans can range from 1 to 3 years with payments typically occurring monthly or bi-weekly. Long term loans can span from 3 to 30 years and are used to finance huge projects like full-scale buildings or capital equipment. These are generally paid monthly or quarterly. At National Funding, we offer short term small business loans so that your business can gain the funding it needs and move forward.

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