What is a business term loan?
A term loan gives your business a fixed lump sum upfront, repaid in equal monthly payments over a set period — typically one to five years. It's the most familiar form of business financing: borrow a defined amount, know your payment, pay it off on schedule.
Because payments are monthly and spread over years, a term loan is well suited to larger, longer-term investments where you want predictable budgeting and a lower overall cost than short-term products.
How it works
- You borrow a fixed amount at a set interest rate.
- Repay in equal monthly installments over the agreed term.
- Rates and terms depend on your credit, revenue, and time in business.
- Stronger profiles unlock larger amounts and longer terms.
What it costs
Term loans are priced with an annual percentage rate (APR), typically about 7–18% depending on your revenue, credit and time in business, and repaid in fixed monthly payments over 12 to 60 months.
Look at the origination fee as well as the rate: many lenders charge one, and it changes the total cost. The business loan calculator shows the monthly payment and total interest for any offer.
Rates, amounts and terms on this page are typical ranges, not offers or guarantees. Your terms depend on your business and the lender that makes the offer. Cashifi is not a lender and does not make credit decisions.
Best for
- Expansion, renovation, or opening a new location
- Large equipment or inventory purchases
- Refinancing higher-cost short-term debt
- Acquisitions and one-time growth investments
Pros and considerations
Pros
- + Predictable fixed monthly payments
- + Lower total cost than short-term financing
- + Larger amounts and longer terms available
- + Builds business credit when paid as agreed
Considerations
- – Stronger credit and longer time in business required
- – More documentation than working capital
- – Slower to fund than short-term products
Do you qualify?
- 12+ months in business
- 580+ credit score (varies by lender)
- ~$10,000+ in monthly revenue
- Profitable or trending profitable
Typically you'll provide: 4 months of business bank statements, 1–2 years of tax returns, A voided business check.
How to apply
- 1Complete one application online — about four minutes, with a soft credit check that won't affect your score.
- 2Upload your recent business bank statements so lenders can see your revenue and cash flow.
- 3Compare the offers that come back, ranked by total cost, and choose the one that fits. There is no obligation.
Frequently asked questions
What can I use a term loan for?
Almost any business purpose — expansion, equipment, inventory, refinancing debt, or an acquisition. Because it's a lump sum over a longer term, it suits larger, one-time investments.
What rate will I get?
Term-loan APRs generally range from about 7% to 18%, set by your credit, revenue, and time in business. We rank real offers by total cost so you can compare.
How long does funding take?
Most term loans fund within 5–10 business days once your documents are in.