Business Term Loans for Small Businesses: Compare Lenders & Get Funded Fast
A business term loan gives your company a lump sum of capital repaid over a fixed schedule — predictable financing for planned investments.
Loan Amount$25,000 – $1,000,000+
Term1 – 5 years
RateFixed or variable
Funding Time2 – 5 business days
Min Credit Score600
Overview
A business term loan provides your company with a lump sum of capital that is repaid over a fixed repayment schedule, making it a reliable option for predictable financing. Businesses commonly use term loans to fund large purchases, manage cash flow, invest in equipment, or support long-term growth initiatives.
Enter your funding needs and compare business term loan options from multiple lenders to find the solution that best fits your goals. Big Think Capital works to streamline the process from application to funding.
Term loans sit in the middle of the small-business capital stack — slower and more selective than working capital, but faster and lighter on documentation than SBA loans. For a healthy business that needs $50,000 to $750,000 with a clear use of funds, a conventional term loan is often the right answer: predictable monthly payments, a defined payoff date, and no equity dilution.
Rates and terms vary by lender and borrower profile. Strong files (680+ FICO, 2+ years in business, $250K+ annual revenue, positive cash flow) often see APRs in the high single digits to low teens. Newer or thinner files (600 FICO, sub-$250K revenue, 1 year in business) typically price higher and shorter — sometimes 18–35% APR over 12–24 months. Both can make sense; the right comparison is total dollar cost over the term, not the headline rate.
A common archetype: a 4-year-old HVAC contractor doing $1.2M in revenue uses a $150,000 term loan over 36 months to hire two technicians and buy a service van — the new revenue covers the payment within 90 days. That kind of math is exactly what term loans are built for. Talk to an advisor at /contact or apply with assistance.
Benefits
Predictable Payments
Fixed monthly payments for the life of the loan — easy to budget around and plan against.
Fast Funding
Many business term loan applications can be reviewed quickly once you provide complete information, with funding often within days.
Build Business Credit
Making on-time payments on a business term loan can help support a stronger commercial credit profile over time.
Who typically qualifies for a business term loan
Personal credit score of 600+ (680+ unlocks the best pricing)
At least 12 months in business — most lenders prefer 24+ months
Annual revenue of $100,000+ ($250K+ for premium pricing tiers)
Average daily bank balance that supports the proposed payment
No open bankruptcies and no recent business defaults
Documentation: last 4–6 months of business bank statements, basic application, and (for $250K+) a recent P&L
Personal guarantee from owners with 20%+ equity in the business
How to get a business term loan
Apply online in 5 minutes
Share basic business info, revenue, and how much you want to borrow. No hard credit pull at application — we use a soft inquiry to pre-qualify.
Submit bank statements
Connect your business bank account or upload 4–6 months of statements. This is what underwriters actually read — it shows real cash flow.
Get offers and compare
Within 24–48 hours you'll see offers from multiple lenders side by side. Compare APR, term, total dollar cost, and prepayment treatment.
Accept and verify
Choose the offer that fits. Final verification (ID, voided check, sometimes a quick call) wraps up the file the same day.
Funded
Funds typically hit your business account within 2–5 business days of acceptance. Payments begin per the agreed schedule.
What you can use a business term loan for
Open a second location
Sign the lease, build out the space, stock the shelves, and cover payroll until the new location ramps — all out of one lump sum.
Hire and train
Bring on two or three full-time team members at once and bridge the 90–180 days before they generate their own revenue.
Big marketing push
Fund a Q1 ad campaign, a new website rebuild, or a national PR launch where ROI shows up over months, not days.
Equipment purchase under $100K
Buy a piece of equipment that doesn't justify a dedicated equipment financing deal — a term loan keeps it simple.
Inventory buy-in
Place a large, vendor-discounted inventory order that the business pays back as it sells through.
Refinance expensive short-term debt
Consolidate a daily-pay MCA or a balloon-style short-term loan into a single fixed monthly payment that fits cash flow.
How term loans compare
vs SBA Loans
Term loans are faster, SBA is cheaper
SBA loans close in 30–90 days at lower rates and longer terms. Conventional term loans close in 2–5 days at higher rates over 1–5 years. Pick speed or cost. Learn more
vs Business Line of Credit
Term loan for one-time, line of credit for ongoing
A line of credit is for unpredictable, recurring draws. A term loan is for a single, defined investment with a known payback horizon. Learn more
vs Working Capital
Term loan is cheaper for larger, longer needs
Working capital funds in 24 hours but costs more and runs 3–24 months. Term loans price better past $50K and 24+ months. Learn more
Ready to apply for Term Loans?
Get matched in minutes. No hard credit pull, no obligation.
Disclaimer: The above information is provided as a guideline. Some loan conditions may fall outside of these parameters. We recommend that you speak with one of our advisors before taking any course of action based on this information.
