Business term loan guide
Business term loans for a clear, defined purpose
A term loan provides a lump sum that is repaid over an agreed schedule. It can fit a planned investment when the cost, use, and repayment strategy are clear.
Lendstra is not a lender. Financing is offered by third-party lenders and is subject to underwriting, approval, and program requirements.
A clearer place to start
Term loans vary widely. Comparing them means looking beyond the payment to the full cost, repayment frequency, term length, fees, collateral, guarantees, and any prepayment rules.
- Useful for one-time projects and purchases
- Repayment schedules vary by lender and product
- Conventional and SBA-backed term structures may be available
Compare paths
Compare a term loan with nearby options
A lump sum is useful when the amount is known. More flexible or asset-specific needs may fit a different product.
Working capital
Explore financing intended for near-term operating expenses and cash-flow needs.
Learn moreBusiness line of credit
Consider revolving access when the exact timing or amount of each expense is less predictable.
Learn moreSBA 7(a) loans
Compare a flexible SBA-backed term option for eligible uses and borrowers.
Learn moreEquipment financing
Use an asset-focused structure when the primary goal is a defined equipment purchase.
Learn moreCommercial loans
Explore term structures for larger assets, projects, and business transactions.
Learn moreDebt refinance
Review whether eligible existing obligations could fit a different repayment structure.
Learn moreCommon goals
A term loan may be considered for
The strongest request connects a specific amount to a specific business outcome and a realistic repayment source.
A longer term may reduce the periodic payment but can increase total financing cost. Compare the full repayment obligation and not only the advertised payment or rate.
- A planned expansion
- Inventory purchases
- A location improvement
- A marketing initiative
- Hiring and training
- Technology upgrades
- A defined working-capital need
- Eligible debt refinancing
What happens next
One starting point, then the right route
Tell us what you need
Share your financing goal, desired amount, and a few details about the business.
Get routed to the right path
The application flow uses your answers to direct you toward an appropriate next step.
Review available options
If there may be a fit, a financing specialist or lending partner can explain the requirements.
Questions, answered
Frequently asked questions
How does a business term loan work?+
The business receives a lump sum and repays it according to an agreed schedule. The interest structure, fees, payment frequency, maturity, collateral, guarantees, and prepayment provisions depend on the lender and product.
When is a term loan better than a line of credit?+
A term loan may be a better fit when the full amount and purpose are known at the start. A line of credit may be more useful for recurring, seasonal, or unpredictable needs when the business wants to draw funds as needed.
Are business term loans secured?+
Some are secured by business assets, real estate, equipment, or other collateral, while some products may be primarily cash-flow based. Personal guarantees may also be required. Requirements vary by lender.
What should I compare between term-loan offers?+
Compare total repayment, annualized cost when disclosed, payment frequency, term length, fees, collateral and guarantee requirements, prepayment rules, and whether the cash flow can comfortably support the payment.
Not sure which loan fits?
That is what the application path is for. Start with your goal and it will direct you to the most relevant next step.