What is a Term Loan?
A traditional business term loan is a lump sum of capital that you pay back with regular repayments at a fixed interest rate. The “term” in “term loan” comes from its set repayment term length, which will typically be one to five years long. Most business owners use the proceeds of term loans to finance a specific, one-off investment for their small business.
Loan Amount Of $25,000 to $500,000
All you need to do see your business term loan options is spend about 15 minutes answering questions in our free online application.
Loan Term Lasts 1 to 5 Years
Since traditional term loans have longer repayment periods than short-term loans, your business’s financials and credit score are more important.
Interest Rates at 5.99% - 30%
Your business term loan will typically have a fixed interest rate or fixed flat fee, which means your payments will stay the same over the lifetime of your 1-5 year term.
Get Your Cash as fast as 24 Hours
With Cheddar Capital once approved, you can access your funds in as little as 24 hours.
Who Qualifies for Term Loans?
Plenty of businesses can qualify for a traditional term loan—as long as you’ve been in business for 3 years, have a good credit score, and are generating revenue. Not all term loans are the same, though: the interest rate, length of the term, and maximum loan size depends on your business revenues and credit rating.
How to Apply for a Term Loan?
Term loans are traditionally a bank product. If you’re applying to a term loan from a bank, you can expect a longer application process with many documents required.
How Do Term Loans Work?
Cheddar Capital knows that every business could use some extra cash. Whether it’s for an equipment upgrade, an order of inventory, or a new employee, a business loan could always help out. Depending on your small business’s growth needs, credit rating, cash flow, revenue, and more, there are plenty of different term loans available. In fact, you can get term loans with lengths and payment structures from 1 year to 5 years with monthly payments. Traditional term loans are a wide category of business financing, available both from traditional banks and alternative non-bank lenders.
What Will a Term Loan Cost You?
You should know how much the financing will cost you no matter what type of financing you’re applying for. Term loans, like other business loans, can also come with fees attached to the loan. These fees could be origination fees, packaging fees, prepayment fees, and so on. Traditional term loans amortize, which means you pay equal parts interest and principal (or the amount you borrowed) every month.
This group was professional, timely and was a pleasure to work with. The turnaround time was fast and even with my less than perfect credit record they had me funded in a few days. Two thumbs way up!!!
Physician, New Jersey
I was very pleased with the customer service and speed of Cheddar. In this day and age it is becoming harder to find good customer service anywhere.
Funding was easy. Cheddar made it easy and fast to get the needed capital for my business.
Energy Consultant, Washington