Term Loans

Term Loan

A business term loan is perhaps the most traditional method of small business financing for borrowers in need of financing for longer than 12 months.  Term loans for businesses can vary widely but they all have a few things in common.  The borrower receives a lump sum payment from a lender, which is paid back at certain intervals over a fixed period of time.  The financing arrangement is classified as a business loan on the balance sheet of the borrower.

“Money is usually attracted, not pursued.” —Jim Rohn

Understanding Term Loan

Understanding Your Loan
Invest For Growth and Expansion
The Pros and The Cons

Short Term Rates

  • As low as 9% Simple Interest¹

What is Simple Interest?
Simple Interest calculates the total amount of interest you pay as a percentage of your loan amount. This rate excludes any fees.

For shorter terms (12 months or less), Simple Interest lets you easily see the total payback amount of your loan.

Total Interest Percentage is also referred to as Fixed Simple Interest, and is not an annualized rate.

On a 6 month, $10,000 loan with 9% Simple Interest and weekly payments, your interest cost is $900, for a total payback amount of $10,900.

Long Term Rates

  • As low as 9.99% Annual Interest Rate¹

What is Annual Interest Rate?
Annual Interest Rate calculates the yearly interest percentage you pay based on your average loan balance. This rate excludes any fees.

While you should always consider the total cost of a loan, for longer terms (more than 12 months) you can use the Annual Interest Rate to compare loans of similar duration.

On a 24 month, $100,000 loan with 9.99% Annual Interest Rate and weekly payments, your interest cost is $10,418.15, for a total loan payback amount of $110,418.15.

Rate Definitions
Simple Interest: Total interest you will pay, and given as a percentage of the amount borrowed, excluding fee
Annual Interest Rate: The interest rate in annualized terms, excluding fees
Annual Percentage Rate: The interest rate in annualized terms, including fees

Rate Elgibility

Eligibility for the lowest rates is very limited, available only to businesses with the strongest creditworthiness and cash flows, and typically businesses that have shown an excellent payment history on prior loan products with us. The weighted average rate for term loans is 25.3% simple interest and 48.7% AIR. Weighted averages are based on loans originated in quarter ending June 30, 2018.

We’ve learned a thing or two by working with more than 1,200 business owners just like you. With us, you don’t just get money in your pocket, you also get credit resources, renewal benefits and, best of all, peace of mind.

It doesn’t matter if you’ve recently started your business or have been around for years, building a solid business credit profile is an important step to make sure you have access to all the financing options you need to build a thriving business. We help you build business credit by reporting your good payment history to the appropriate business credit bureaus.