Business term loans with a fixed amount and a fixed schedule
Borrow a set amount, repay on a fixed schedule, and know the total cost before you sign.
Business Term Loans overview
- Typical amount
- $25K to $2M
- Typical term
- 1 to 5 years
- Time to fund
- 2 to 7 days
Ranges are typical for this type of financing. Your amount, term and pricing depend on the lender and your business profile.
How it works
A business term loan is the straightforward option: one lump sum, a fixed repayment schedule, a rate that sits between SBA and short-term products. It suits a project with a clear budget and a clear return, such as opening a second location, buying inventory ahead of a season, or consolidating more expensive debt.
Underwriting is lighter than SBA. Most lenders want recent bank statements, a year or more of operating history and owner credit around 600 or better. Capital Ally compares offers across its lender network so the rate, term and any prepayment terms are laid side by side before you choose.
Best for
- Expansion with a known budget
- Inventory ahead of a busy season
- Consolidating higher-cost advances
- Any one-time investment you want to pay off over years, not months
What businesses use it for
Open a new location
Cover the build-out, deposits and opening inventory on one schedule that matches when the location starts producing.
Consolidate debt
Replace several daily or weekly payments with one monthly payment at a lower total cost.
Large purchases
Vehicles, machinery, technology or a bulk inventory buy where the vendor wants payment up front.
How it compares
Term loans vs sba loans
SBA is cheaper and longer but takes months. A term loan is the answer when the opportunity will not wait.
Term loans vs line of credit
A term loan fits a single defined need. A line fits recurring or unpredictable needs.
Business Term Loans: common questions
See all questionsIs the rate fixed?
Most term loans carry a fixed rate and a fixed payment for the life of the loan, which is what makes them easy to budget.
Are there prepayment penalties?
Some lenders charge one, some discount the remaining interest if you pay early. Capital Ally shows you which before you sign.
How fast can it fund?
With complete documents, most term loans fund within a week. Larger amounts and collateral add time.
Other funding solutions
Ready to apply for Term loans?
Two minutes to check eligibility. A specialist reviews it the same day. No credit impact, no obligation.