A business term loan provides $25K to $1.5M as a lump sum repaid in fixed installments over 1 to 5 years, at rates from about 10% APR for qualified borrowers through online lenders. Funding typically lands in 2 to 5 business days for owners with 650 plus credit and two years in business.
The workhorse of business finance: one lump sum, a fixed schedule, a known payoff date. When the project is planned rather than urgent, a term loan usually beats an advance by a wide margin in total dollars.
Banks price lowest and move slowest. Online lenders price higher and fund in days. We place your file where the math and the timeline both work, and we show you the total cost of each path side by side.
Term sheet
- Amounts
- $25K to $1.5M
- Cost
- From about 10% APR
- Term
- 1 to 5 years
- Payments
- Monthly or weekly, fixed
- Time to fund
- 2 to 5 business days
- Typical profile
- 650+ credit, 2+ years in business, profitable
a.The right fit
- Planned expansion: a location, a hire wave, a buildout
- Refinancing more expensive debt into one fixed payment
- Larger one-time purchases where speed is not the constraint
- Owners who want a payoff date they can circle on a calendar
b.Read before you sign
- Origination fees of 1 to 5 percent are common. We include them in the cost we quote, not in a footnote.
- Some online lenders debit weekly, not monthly. Confirm the schedule matches your cash rhythm.
- Prepayment terms vary widely. If you plan to pay early, we place you with a lender that rewards it.
c.How it funds
Apply once
Two minutes plus bank statements. Stronger files add a year of business tax returns for better pricing.
Compare real offers
APR, origination fee, payment, and total repayment for each offer, in one honest table.
Fund in days
Sign and funds land in 2 to 5 business days for most online placements.
d.Plain answers
What determines my term loan rate?
Credit score, time in business, revenue trend, and existing debt load, in roughly that order. Bank loans start near 8 to 10 percent for strong files; online lenders run 10 to 36 percent depending on risk. We tell you where your file prices before any lender sees it.
Term loan or working capital advance: which is better?
If you qualify for the term loan and can wait a few days, it almost always wins on total dollars. The advance wins on speed and forgiving underwriting. We show both totals in writing so the trade is visible, not implied.
Will I need collateral or a personal guarantee?
Most term loans under $500K are unsecured but carry a personal guarantee. Larger amounts may take a blanket lien on business assets. Both appear in the offer summary we walk you through before signing.