Fixed Rates
Business Term Loans — Fixed-Rate Financing Up to $10M
Predictable monthly payments with fixed rates starting at 7%. Terms from 3 to 7 years for expansion, equipment, and major investments.
How Term Loans Work
A business term loan gives you a lump sum of capital upfront that you repay over a fixed period with predictable monthly payments. With fixed rates and a set maturity date, it's built for planned, one-time investments such as expansion, equipment purchases, real estate, or debt consolidation, where steady, budgetable payments matter. Lenders typically look at your time in business, revenue, credit, and debt service coverage when reviewing an application.
Rates are competitive and vary by lender, term length, and borrower profile, and longer terms spread payments out for lower monthly costs. If your need is short-term cash flow instead of a major investment, compare a working capital loan; to buy machinery specifically, see equipment financing; or model different scenarios with our loan calculator.
$25K - $10M
Loan amounts
3-7 Years
Flexible Terms
Fixed Rates
Predictable Payments
Understanding Business Term Loans
Term loans provide a lump sum of capital upfront with fixed monthly payments over a predetermined period. They're ideal for major business investments, expansion projects, and long-term strategic initiatives.
How Term Loans Work
Term loans provide a fixed amount of capital that you repay over a set period with predictable monthly payments. Interest rates can be fixed or variable, and the loan is typically secured by business assets or personal guarantees.
Predictable Payments:Fixed monthly payments make budgeting easier
Lower Interest Rates:Generally lower rates than short-term financing
Build Credit:Consistent payments improve business credit profile
Term Loan vs. Other Financing
vs. Line of Credit
Term loans provide immediate access to full amount, while lines of credit offer ongoing access to funds as needed.
vs. Working Capital Loans
Term loans are for long-term investments, while working capital loans address short-term cash flow needs.
vs. Equipment Financing
Term loans offer more flexibility in fund usage, while equipment loans are specifically for equipment purchases.
Industry-Specific Applications
Term loans empower businesses across industries to invest in growth, upgrade equipment, and expand operations.
Manufacturing
Fund production equipment, facility expansion, and automated systems to increase capacity and efficiency.
Production line upgrades
Warehouse expansion
Quality control systems
Healthcare
Invest in medical equipment, practice expansion, and technology upgrades to improve patient care and efficiency.
Medical equipment
Practice acquisition
EMR system implementation
Technology
Fund product development, team expansion, and infrastructure scaling for growing tech companies.
R&D investments
Team hiring
Infrastructure scaling
Real-World Success Stories
See how businesses have used term loans to fund expansion and equipment while protecting their working capital.
Restaurant Chain Expansion
Challenge: A successful restaurant wanted to open three new locations but needed capital for buildouts, equipment, and initial operating expenses.
Term Loan Amount:$750,000
Term:7 years
Rate:7%
Monthly Payment:$11,320
Result: Covered build-outs and equipment for 3 new locations, freeing up cash for working capital
Manufacturing Equipment Upgrade
Challenge: A precision manufacturing company needed to replace aging equipment to meet new quality standards and increase production capacity.
Term Loan Amount:$1,200,000
Term:7 years
Rate:7.2%
Monthly Payment:$18,229
Result: Replaced the aging equipment with fixed monthly payments, keeping cash available for working capital
Term Loan Application Process
Our streamlined process guides you from application to funding with expert support every step of the way.
Application Steps
1
Pre-qualification (10-minute application)
Answer basic questions about your business and funding needs to see if you qualify.
2
Full Application (30 minutes)
Complete detailed application with financial information and business details.
3
Document Review (2-5 days)
Submit financial documents for underwriting review and verification.
4
Final Approval & Funding (1-3 days)
Review loan terms, sign documents, and receive funds in your account.
Required Financial Documents
Personal Documents
Personal tax returns (2 years)
Personal financial statement
Government-issued ID
Business Documents
Business tax returns (2-3 years)
Financial statements
Bank statements (6 months)
Business plan or use of funds
Term Loan Benefits
- Fixed monthly payments for budgeting certainty
- Competitive interest rates
- No prepayment penalties
- Fast approval process
- Build business credit history
Common Uses for Term Loans
Business expansion
Equipment purchases
Inventory financing
Real estate purchases
Debt consolidation
Working capital
Term Loan Requirements
Credit Score:650+
Time in Business:2+ years
Annual Revenue:$100K+
Interest Rates:Currently range from 7% to 12%
Payment Example
Loan Amount:$100,000
Interest Rate:7.5%
Term:5 years
Monthly Payment:$2,004
Term Loan vs. Working Capital — Which Fits Your Need?
Both put cash in your hands, but they are designed for different timelines. The deciding question is whether you are funding a major one-time investment or covering everyday operating costs.
A business term loan is the right fit for planned, one-time investments such as expansion, real estate, debt consolidation, or major equipment. You receive a lump sum upfront and repay it over a fixed term with predictable monthly payments, which makes budgeting straightforward and spreads the cost over the life of the investment. Longer terms lower the monthly payment, so it suits commitments you will benefit from for years.
If your real need is short-term and operational, payroll, inventory, rent, or bridging a cash-flow gap, a working capital loan is usually the better match. It leans on monthly revenue more than collateral, funds quickly, and is structured for temporary gaps rather than a long repayment schedule that ties up cash flow.
Still weighing your options, or want to compare a line of credit or factoring too? Browse our business capital solutions overview to see every funding type side by side and find the one that fits your goal and timeline.
Explore Related Financing Options
Compare financing options to find the best fit for your business needs
Up to $5M
SBA 7(a) Loans
The most flexible SBA program with up to $5M for working capital, equipment, and real estate.
Learn more$5K–$5M
Working Capital Loans
Short-term funding for day-to-day operations, payroll, inventory, and cash flow gaps.
Learn more$10K–$5M
Business Lines of Credit
Revolving credit lines for flexible, on-demand access to business funding.
Learn more$10K–$10M+
Equipment Loans
Fixed-rate equipment purchase financing with predictable monthly payments.
Learn moreFAQ
Frequently Asked Questions
A business term loan is a lump sum of capital borrowed from a lender and repaid over a fixed period with regular payments (usually monthly). Term loans have predetermined interest rates, repayment schedules, and maturity dates, making them ideal for planned investments where predictable payments are important.
Business term loans typically range from $25,000 to $10 million depending on your business size, revenue, creditworthiness, and intended use. SBA-backed term loans can go up to $5 million, while conventional commercial term loans may exceed $10 million for established businesses.
Term loan rates currently range from 7% to 12% depending on loan type, term length, and borrower qualifications. SBA term loans offer rates starting around 7-8%, while conventional term loans range from 7-10%. Rates are typically fixed, providing payment predictability.
Term loans can fund business expansion, equipment purchases, real estate acquisition, working capital, debt consolidation, hiring, marketing initiatives, inventory, and other major investments. The key is that the use should generate returns that exceed the loan cost.
Requirements typically include 2+ years in business, $100K+ annual revenue, credit score of 650+, positive cash flow, and a clear purpose for the funds. Lenders evaluate debt service coverage ratio (DSCR), requiring your business income to cover loan payments by 1.25x or more.
Short-term loans (3-18 months) have higher payments but faster payoff and are best for immediate needs. Long-term loans (3-7 years) have lower monthly payments spread over longer periods, ideal for major investments. Short-term loans typically have higher rates but less total interest paid.
Lenders generally look for at least 2 years in business, around $100K or more in annual revenue, a credit score of 650 or higher, and positive cash flow, along with a clear purpose for the funds. They also review your debt service coverage ratio (DSCR), typically requiring business income to cover loan payments by 1.25x or more.
A term loan gives you a lump sum repaid over a fixed period with predictable monthly payments, making it ideal for planned, one-time investments like expansion or equipment. A line of credit offers ongoing access to funds you draw as needed, which suits recurring or short-term cash-flow needs rather than a single large purchase.
Still have questions? Our loan experts are here to help.