A short term loan is a monetary loan that is repaid in set payments over a set period of time. Term loans can last between one and ten years, but may last as long as 30 years in unique cases. A term loan usually involves an unfixed interest rate that will add additional balance to be repaid.
Term loans can be given on an individual basis, but are most often used for small business loans. The ability to repay your loan over a long period of time is attractive for new small businesses or existing and expanding enterprises, as the assumption is that they will increase their profit over time. Term loans are a good way of quickly gaining capital in order to raise a business’ supply capabilities. For instance, some new companies may use a term loan to buy company vehicles or rent more space for their operations in order to grow their business.
Average Loan Amount
$5K-$5M
Loan Term
5-25 Years
Loan Term
5-25 Years
Average Loan Amount
$25K - $500K
Loan Term
1 - 3 Years
Interest Rates
Starting at 7.8%
Time Needed
As fast as 1 week
How to Apply?
Plenty of businesses can qualify for a traditional term loan—as long as you’ve been in business for a minimum required period of time, have a good credit score, and are currently generating revenue.
Not all business term loans are the same, though: the interest rate, loan term length, and maximum loan size depends on your business revenues and business credit rating.
Documentation Needed:
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Application
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Debt schedule
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Business and Personal Tax Returns
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3 Months of Business Bank Statements
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Business Profit & Loss Statements
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Business Balance Sheet
Qualifications:
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$100,000 in annual revenue
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1+ years in business
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Minimum 600 credit score
Short Term Business Loans
Business term loans are traditionally a bank product. If you’re applying to a term loan from a bank, you can expect a longer application process with many documents required; which isn't always appealing.
Plenty of businesses can qualify for a traditional term loan, as long as you’ve been in business for a minimum required period of time, have a good credit score, and are currently generating revenue.
Capital Infusion offers a variety of repayment plans for your desired term loan. Commonly, you may choose to pay off your debt in even amounts, or the amount you pay will gradually increase over the loan period. If you expect that you will be more financially able to repay in the future, causing an incremental increase may help you and save you interest.