Business Term Loan
Get A Loan Tailored Just for Your Business!
Each day, numerous accomplished business owners face the challenge of obtaining loans to fuel their business growth. They navigate through a daunting process of paperwork and intricate loan options. At our company, we strongly believe that small businesses deserve a better experience. When you apply with us today, a dedicated loan specialist will personally guide you in finding a loan that is custom-tailored to meet your specific needs. We are committed to providing a streamlined and supportive approach, ensuring that you receive the financing solution that empowers your business to thrive.
What Is A Business Term Loan?
A Business Term Loan is a lump sum of capital (a specified amount) that you pay back with a specified repayment schedule and has a fixed (or adjustable) principal & interest rate or a “factor rate,” which is fixed cost. A business term loan can vary in duration from short ( 6 to 12 months, intermediate (12 to 24 months), or long term (3 to 25 years). Payments are typically made either monthly, bi-monthly, weekly, or in some rare cases daily Monday-Friday via an ACH (automatic clearing house) deduction from the business bank account. Business term loans are offered by Traditional Banks, The Small Business Administration, and also Fintech Online Business Lenders.
How Much Will A Business Term Loan Cost?
Truth in Lending disclosure: A "Truth in Lending", disclosure is made for principal and interest term loan. The federal Truth in Lending Act, also known as TILA, governs this disclosure. It ensures that lenders treat consumers fairly and gives clear information on the cost of credit. The TILA mandates that lenders present credit terms to consumers in a clear and simple manner. This allows them to compare rates and conditions with confidence. The Truth in Lending disclosure (TIL), includes information such as loan amount, APR (annual percentage rate), finance charges (including late fees, prepayment penalties, and application charges), payment schedule and total repayment amount.
SmartBox Disclosure: A "SmartBox" is disclosed when a term loan uses a factor rate in place of principal and interest. This tool allows borrowers to understand and evaluate their small business financing costs. The SmartBox contains information on the cost of financing, including the annual percentage rate (APR), average monthly payments and cents per dollar.
Benefits of business term loans:
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Obtaining funds for infrastructure expansion
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Large projects that are currently being funded
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Capital requirements for long-term orders or inventory needs
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Renovations of company premises can be funded.
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Purchase of significant equipment or machinery
How to Choose the Right Business Loan
Why? This question should be at the forefront of your mind when seeking a loan to support your small business. It is crucial to determine the purpose of the loan and how it will benefit your business. The purpose and usage of the loan play a significant role in selecting the appropriate loan product that aligns with your business needs. Solely considering interest rates should not be the sole basis for your decision. To make an informed choice, you should take into account factors such as interest rate, factor rate, costs, payment frequency, and product flexibility. Lenders, when assessing whether to lend to small businesses, will be interested in understanding where their funds will be utilized.