Business Term Loans - $25K to $500K
Fixed payments, predictable. 1–5 year terms for growth and expansion.
See if I qualifyA term loan gives you a single lump sum you repay in fixed installments over a set period. It is the most straightforward form of business financing: you know the payment, you know the end date, and the cost does not change as your revenue moves. That predictability is why term loans are usually the cheapest option a growing business can qualify for.
Who qualifies
- Typically 12+ months in business (24+ opens materially better pricing)
- Around $15,000–$25,000 per month in revenue, deposited into a business bank account
- Personal credit generally from the low 600s, though stronger credit widens your options
- A dedicated business checking account with 3–6 months of statements
Best for
Predictable, one-time investments: equipment you are not financing separately, a build-out, hiring ahead of demand, consolidating more expensive short-term debt, or buying inventory at a discount.
What to check before you sign
- Prepayment terms. Some term loans carry a prepayment penalty or charge full interest regardless of early payoff. Ask whether interest stops accruing if you repay early - on a genuine term loan it should.
- Origination fees. Commonly 1%–5%, often deducted from proceeds, so a $100,000 loan may net $95,000. Confirm the amount you actually receive.
- Payment frequency. Monthly is standard, but some non-bank term loans debit weekly. Weekly payments change your cash-flow planning considerably.
- Blanket liens. A UCC-1 filing against all business assets can complicate future borrowing. Ask what is being filed and against what.
Frequently asked questions
How long are business term loans?
Most small-business term loans run one to five years. Shorter terms mean higher payments but less total interest; longer terms lower the payment but cost more overall. SBA-backed term loans can extend to 10 or 25 years, which is why they are usually the cheapest option if you qualify and can wait for the longer approval process.
What credit score do I need for a term loan?
Bank term loans generally start around 680. Non-bank lenders will often work in the 600s, at higher cost. Below roughly 600, term loans become difficult and revenue-based options or invoice factoring are usually more realistic. Credit is only one input - lenders weigh time in business and consistent deposits at least as heavily.
How fast can a term loan fund?
Non-bank term loans commonly fund in two to seven business days once your documents are in. Bank and SBA term loans take longer - typically several weeks - because of deeper underwriting. Having three to six months of bank statements ready is the single biggest factor in how fast this moves.
Is a term loan cheaper than a merchant cash advance?
Almost always, yes. Term loans are priced with an interest rate and amortize over time, so paying early reduces what you owe. A merchant cash advance uses a factor rate on a fixed total, so early repayment does not reduce the cost. If you qualify for a term loan, it is generally the better economic choice.
Do term loans require collateral?
Many small-business term loans are unsecured, backed by a personal guarantee rather than specific assets. Larger amounts, and most bank loans, are more likely to require collateral - often a blanket lien on business assets. A personal guarantee is standard either way and means you are personally responsible if the business cannot repay.
Why apply through Fundwise
- One application, every lender we partner with
- No hard credit pull to see your matches
- Free Money screening for tax credits included
- Real human concierge if you get stuck