A business term loan is the most familiar kind of financing: you receive a lump sum upfront and repay it in regular, predictable installments over a fixed period. That predictability makes it well suited to larger, one-time investments where you want to know exactly what you’ll pay and when.
What a term loan is
With a term loan, you borrow a set amount and repay it — plus interest — over a defined term through scheduled payments, usually monthly. Because the amount, term, and payment are set at the start, it’s one of the most straightforward and predictable ways to finance a significant expense.
How it works
- You receive a lump sum. The full amount is disbursed upfront.
- You repay on a fixed schedule. Typically equal monthly payments.
- The term is set in advance. You know the payoff date from day one.
Typical amounts and terms
- Amounts: commonly $5,000 to $500,000.
- Terms: often 1 to 5 years.
- Payments: usually fixed and monthly, so they’re easy to budget.
- Pricing: stronger revenue and credit profiles generally see better terms.
These are typical ranges for illustration, not an offer.
See real options before you decide. Comparing takes about a minute and won’t affect your credit.
Check eligibility →When a term loan makes sense
It’s a strong fit for planned, larger investments such as:
- Expanding to a new location or renovating an existing one.
- A significant one-time purchase or project.
- Consolidating or refinancing more expensive short-term debt.
- Any situation where predictable, fixed payments matter.
What you’ll typically need
- Around 6+ months in business (longer history can help terms).
- Roughly $20,000+ in average monthly revenue.
- Recent business bank statements.
Frequently asked questions
Are the payments fixed?
Term loans typically have fixed, scheduled payments — usually monthly — which makes them easy to budget around.
How long are the terms?
They commonly run from about 1 to 5 years, though this varies by provider and the amount borrowed.
What can I use a term loan for?
Term loans suit larger, planned investments — expansion, renovation, major purchases, or consolidating costlier short-term debt.
How does it compare to a bank loan?
Providers in our network often move faster than traditional banks and weigh recent revenue heavily, which can mean quicker decisions for established businesses.
Want to see what you qualify for? Compare options from our network in about 60 seconds — with no impact to your credit.
See my funding options →This page is for general educational purposes and is not financial advice. Access Funding Network is a free matching service, not a lender. Funding products, amounts, rates, and terms are offered solely by independent third-party providers and are subject to their underwriting. Amounts and terms shown are typical industry ranges for illustration only and are not an offer or guarantee. Not all applicants will qualify or be matched.