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 ten years long. Most business owners use the proceeds of term loans for daily operating expenses, payroll, inventory and expansions.
Unlike Revenue Based Loans, Business Term Loans offer both Unsecured and Secured options. Unsecured options will be based strongly on the business credit and financials. And it may be loosely based on the business owner's personal credit. Unsecured Business Term Loans will usually have a loan amount cap of 25% of the yearly gross revenue.
Secured Business Term Loans work differently. These programs will add the business owner as a Personal Guarantee. Meaning that the approval will be strongly based on the business owner's credit history and assets. Additionally, the Secured program will add a UCC filing on the business. Due to the additional requirements, the loan amount cap is much higher. They can leverage your assets and credit score alongside the business financials and cash flow. Giving you the possibility to use collateral and getting approved for over 100% of the yearly gross revenue.
Business Term Loans take between 2 to 10 business days to fully underwrite and they come with next day funding options.
Business Term Loans are usually considered a bank product, making it difficult for newer businesses or certain industries to get approved. However, since we only work with private banks and hedge funds, it makes it easier to get approved due to the more flexible restrictions and requirements.
Our Business Term Loans are far less restrictive than bank Term Loans. The requirements needed are as follows: