Small Business Bank Loans
Business term loan
A traditional loan with a specified repayment schedule and fixed interest rate, usually offered by a bank.
Lenders profit from the interest you pay on your loan. You may be fined a penalty fee if you try to pay off your loan early (since the lender is making less money from you than they originally thought).
Repaid over a period of 1–5 years, usually in monthly installments
Fixed interest rates ranging from 7% to 30%
Fees for early repayment may apply.
It's most commonly utilized for major, one-time company investments.
Only a few people employ limitations.
Maximum of $25k–$500k
Application conditions are very strict.
Best for: dependable enterprises with consistent cash flow and a credit score of 680 or higher who are looking to fund a large project.
Term Loans for Small Businesses
When you take out a small business term loan, you'll receive a lump sum of money that you'll repay at a predetermined interest rate over a certain period of time. These loans are typically repaid in five years and are intended to fund a specific small business investment.
Small company term loans, like mortgages and car loans, usually include an amortization plan, which means that the majority of your payment will go toward interest at the start.
Best Banks for Small Business Loans
