A term loan is the most common type of loan offered by banks and lenders around the world. Simply put, these loans allow you to borrow a lump sum of money and repay it over a fixed period of time with regular payments. Oftentimes, it is one of the best ways for small and medium businesses to get the funding they need.
When You Want Full Control
Unlike a seller, you pay with a percentage of your daily sales. This gives you more control over your finances, allowing you to plan for the daily remittance and budget appropriately. What’s more, you know the date that you will make your final payment upfront. This means that you can plan for additional financing if necessary. There is no penalty for repaying your early loan.
When to Choose a Term Loan
Because term loans have a more stable repayment structure, small businesses can often borrow more money with this type of product than they can with a merchant advance. Term loans are excellent for covering all of your business needs, including:
Remodeling your retail location
Opening another retail location
Obtaining funds for accounts payable
Term Loans by the Numbers
You can borrow between $ 50,000 and $ 300,000, and you have the option to repay it over the course of six, nine, or 12 months. The shorter the repayment term, the higher your payments will be, but the less interest you will pay over time. Conversely, the longer repayment term, the lower your payments will be, but the more interest you will pay over time. Despite the fact that the repayment schedule is fixed, the repayment plan is a repayment plan that works for you.
How to Apply
Applying for a term is easy. Just provide some basic information about your business, your merchant ID number, a government-issued photo ID, a void check, and your most recent bank statement. All of this information will be determined by you, if you do, how much money you qualify to receive. It is usually one of the most important things you can do, and you will have your funds available before the fifth business day.
Term Loans and Your Credit
You do not have to appear on your credit report, a term loan does. This means that you want to establish or rebuild your credit, a term is a great choice. In fact, even if you have bad credit, you are not immediately disqualified. You may be asked to provide a cosigner, or you may be offered a different product with different pricing terms.
If you are interested in buying a loan, Thinking Capital can get you qualified. Just fill out the short application, and find out how much your business can receive. That’s all there, and you can get the money in just a few days’ time.