Term Loans

You may want to consider a term loan if you need to borrow a lump sum of cash up front. A term loan is a good option if you have an immediate one-time need for cash and can make regular payments over a set time period to pay back the loan plus interest. Many established businesses find term loans useful for acquiring the cash that would be difficult to save allowing for healthy cash flow.

Flexible financing solutions to help your business
  • Business expansion.
  • Refinance existing loans.
  • Equipment and commercial vehicle financing.
  • Local decision making with a quick response.
  • Financing up to seven years.
  • Fixed or variable rates.
  • New or used equipment and vehicles.
  • SBA financing available.
Secured vs. unsecured term loans.

A secured loan requires collateral such as real estate, equipment or commercial real estate. In some cases, loans secured by real estate can be used for business purposes other than the purchase of property being offered as collateral. An unsecured loan requires no collateral.

Short-term, medium-term and long-term loans.

With the exception of secured real estate loans, most loans have a term of two to five years. More recently, short-term loans for a year or less are available in addition to traditional long-term loans of up to 25 years, such as a SBA 7(a) loan for financing commercial real estate. Ultimately, the term of the loan is based on its purpose and the type of collateral used to secure it.

  • Short-term loans can be useful for financing an immediate business need and/or to establish or re-establish credit. The term can be as little as six months. Sometimes weekly or daily payments are required which allowing the balance to be paid off quickly, thus reducing the total cost of financing.
  • Medium-term loans are usually set up for two to five years and can be secured by an owned asset or what is being purchased with the loan. They may also be unsecured loans that require no collateral depending on the borrower’s credit. This is the perfect loan for growing companies with good revenue that need to purchase tangible assets. The accounting and tax benefits of asset ownership may help offset the interest costs associated with the loan.
  • Long-term loans can run anywhere between 10 and 25 years and range from a few thousand to a few million dollars. Long-term loans are generally tied to a particular purchase and can be used for a variety of things including major expansions, the purchase of a building, inventory, real-estate, equipment, and construction to name a few.

Offers of credit are subject to credit approval.

Certain conditions apply. We offer flexible terms with competitive interest rates. Please contact us at 804.897.3900 for a free, personalized consultation.