TERM LOANS
A term loan is a money loan from a bank or non-bank financial institution that must be repaid in regular installments over a fixed period of time.
Secured loan: Secured business loans require collateral in the form of equipment, machinery, raw materials, inventory or residential/commercial property. The interest rate on secured loans is comparatively lower than unsecured business loans.
Unsecured Loan: Unsecured business loans are loans where you are not required to provide any collateral to the lender. These loans are higher risk and hence have a higher interest rate.
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Short Term: 2 to 5 years – $30,000 to $350,000 (14 days to complete funding. Monthly payments rates starting at 5.99%)
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Long Term: 10 to 25 years – $500,000 to $25,000,000 (approximately 6 weeks to complete funding. Rates starting at 4.75%)
Term loans can be used to finance various business activities as mentioned below:
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Business expansion
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Purchase of equipment, machinery or raw materials
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Managing cash flow
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Meeting working capital needs
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Buying office or commercial space/land
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Paying rent and salaries
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Hiring new staff
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Consolidating debt
