Business Term Loans

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 higher tolerance for risk than traditional banks. That’s why we offer unsecured business loans for small business owners. No collateral 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?