Why Choose a Term Loan?
- A ‘Term Loan’ is lump sum capital that may be borrowed over 12 – 60 months.
- Term loans are considered a conventional financial vehicle, boasting a traditional amortization schedule and no prepayment penalties.
- Business term loans are typically used to purchase equipment, finance projects, or consolidate debt.
- Offering fixed rates and extended terms, the term loan is an excellent option for large-scale business needs.
What is a Term Loan?
A term loan provides a borrower with a lump sum up front that is then repaid at regular intervals over a set amount of time, also referred to as the loan term.
Uses for a Business Term Loan?
Business term loans are designed to fulfill a variety of business need. Common use-of-funds consist of:
- Debt Consolidation
- Equipment Financing
- Bridge Loan
- Project Financing
Applying for a Business Term Loan
Traditionally speaking, banks tend to have a labor-intensive process when applying for term loans. The Working Capital Marketplace ensures a simplified and streamlined process to deliver an approval within 48 hours.
What will underwriters use to qualify you for a business term loan?
- Business Credit Score
- Business Industry Type
- Time In Business
- Business Bank Statements
- Business Financials (IE. Tax return, profit/loss statement, balance sheet)
Fixed Cost of Capital and Payment Frequency
- A business term loan has a fixed rate, which means your payments will remain constant over the life of your loan term (12 – 60 months).
- The terms enable you to customize your cashflow situation to your financing needs and control your monthly outlay.