What Is A Business Term Loan?
When your business needs to purchase equipment, renovate office space or make a similar type of investment, a term loan might be your best option, which gives you the cash to grow your business. Here’s what you need to know about term loans before you submit an application.
How A Business Term Loan Works
If you have a car loan, student loan, or a mortgage, then you likely know how a term loan works. You borrow a lump of cash upfront and repay the loan over a set period of time..
Requirements, rates and funding varies between banks, but essentially, term loans range in size from $2,000 to $5 million and have a wide range of annual interest rates.
At IncredibleBank, we offer low rates on term loans but typically require a strong personal credit score and high annual revenue. Our term loans typically have long repayment terms of up to 10 years.
IncredibleBank also offers Small Business Administration loans, which are guaranteed by the federal agency. This type of term loan provides up to $5 million and carries repayment terms of up to 25 years, depending on usage and industry. SBA loans also have some of the lowest rates, making them a good option for long-term financing.
More Banking Options For Your Business
Business Line Of Credit
A business line of credit differs from a term loan, which provides a lump sum of cash upfront and then is repaid over a fixed period of time.
Stay in control of your finances from the palm of your hand. Pay bills anytime, deposit checks, check balances, view transactions, and transfer funds with our IncredibleBank mobile app.
When you open a business checking account from IncredibleBank, you’re not just opening opportunities for success, you’re opening a relationship with a bank that actually cares about what makes life incredible for you.