Compare the best long-term business loan providers for low rates and fast turnaround.Compare the best long-term business loans, including options for low rates, fast turnaround times and more.
With amounts up to $5 million or more and repayment terms between three and 25 years, long-term loans are ideal for making larger investments in your business. While they come in different forms, the most popular types are business term loans, SBA loans, equipment loans, business acquisition loans and commercial real estate loans.
Our lending experts analyze dozens of business loan providers to narrow down the best options for long-term business loans. We weigh lenders against 12 key metrics:
Application process
Credit score minimums
Customer service reviews
Eligibility requirements
Extra features
Fees
Funding turnaround times
Lender reputation
Minimum and maximum loan amounts
Products offered
Rates
Willingness to work with risky industries
We also search for lenders that cater to a range of needs, including those that work with bad credit and newer business owners.
How to compare long-term business loans
Here are the top things to keep in mind when comparing long-term business loans:
Repayment terms. The repayment terms for business loans range greatly by loan type. The longer the repayment term, the lower your monthly payments are, but the more interest paid over time — and vice versa. The loan type largely determines how long you have to pay it back. SBA loans typically have the longest terms.
APRs. APRs on long-term business loans are generally lower than APRs on short-term loans but can vary widely across lenders. We recommend comparing multiple quotes from lenders to ensure you’re getting the most competitive rate.
Origination and other fees. Depending on the lender and your credit profile, you may be charged an origination fee from 0.05% to 10% of the loan amount. The lender may also charge prepayment penalties, late fees and monthly administrative fees, so be sure to check.
Funding time. While you may be able to get a term loan in just a couple of days from an online lender, SBA loans can take one to two months to fund. If you need capital right away, some options may work better, including short-term loans.
Customer support options. Many lenders have loan officers who can answer your questions and support you throughout the application process. You may discover loans you didn’t know about but could be better for your situation.
Customer reviews. Customer reviews on sites like Trustpilot and the Better Business Bureau (BBB) are a great place to learn about past customers’ experiences with a particular lender.
How long-term business loans work
You get a lump sum upfront (usually at a fixed rate) and repay it in equal monthly installments over three to 25 years. Interest starts accruing immediately on the full amount, unlike credit cards or lines of credit, which only charge interest on what you actually use.
Monthly payments are lower than short-term loans (which can require weekly or even daily payments), but you’ll likely pay more total interest over time. The upside: loan interest is often tax-deductible, and some loans, like commercial real estate, let you make interest-only payments temporarily to keep your cash flow lighter.
Pros and cons of long-term business loans
Pros
Ideal for long-term growth and expansion
Payments lower than with short-term loans
Rates may be lower than for short-term loans
May have certain tax advantages
Cons
May pay more interest over the long run
May be harder to qualify for than a short-term loan
Best rates go to established businesses
May take longer to fund than short-term loans
Common uses for long-term loans
Long-term loans can be a smart way for businesses to tackle big projects or take the next step in their growth. Here are some of the most common ways businesses put long-term loans to work:
Business expansion. Growing your business takes more than vision — it takes capital. Long-term loans can help fund new locations, larger facilities or increased production capacity.
Purchasing real estate. Whether buying your first office space or upgrading to a larger facility, long-term loans make it easier to manage the cost of buying commercial property.
Financing equipment. Need new equipment? These loans let you spread the cost over time so you can get what you need without a huge upfront expense.
Acquiring another business. If you’re ready to grow through an acquisition, a long-term loan can help make it happen.
Refinancing debt. Consolidating high-interest debt into a long-term loan can lower your monthly payments and free up cash for other priorities.
Renovations or construction. Whether it’s a new build or a facelift for your current space, long-term loans are a solid option to cover construction or renovation costs.
Inventory purchases. Stocking up for a busy season or expanding your product line? A long-term loan can help you make large inventory purchases without straining your cash flow.
Long-term commercial loans are all about helping your business move forward, whether that means growing, upgrading or simply making operations more manageable.
Compare other long-term business loans
Use our table to compare lenders, and then select Go to site to visit the lender’s website or View details to learn more and read our review.
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What is the Finder Score?
The Finder Score crunches 12+ types of business loans across 35+ lenders. It takes into account the product's interest rate, fees and features, as well as the type of loan eg investor, variable, fixed rate - this gives you a simple score out of 10.
To provide a Score, we compare like-for-like loans. So if you're comparing the best business loans for startups loans, you can see how each business loan stacks up against other business loans with the same borrower type, rate type and repayment type.
Prequalifying for a long-term business loan is a helpful way to see your options without committing to a formal application. It gives you a sense of what’s available and whether you’re likely to qualify, all without impacting your credit score. Here’s how it typically works:
Start with the lender’s website. Most lenders have a prequalification form online. It’s a quick and simple way to get started — no paperwork required.
Share basic information. You’ll need to provide details about yourself and your business, like your revenue, time in business and credit score range. This information helps the lender gauge your eligibility.
Review loan options. Once you submit the form, the lender will show you potential loan offers tailored to your business. These include details like loan amounts, interest rates and repayment terms.
Compare offers. Take the time to explore offers from multiple lenders to find the loan that best fits your needs and budget.
Apply when you’re ready. After comparing your options, you can move forward with a formal application to the lender that feels right for your business.
How to apply for a long-term business loan
Applying for a long-term business loan typically follows these five steps:
Determine the financing you need. Long-term business loans come in different forms. Choosing the right option ensures that you are getting the best loan to cover the type of costs you’re financing, for example, equipment or real estate.
Check your eligibility. This step involves checking your personal and business credit scores, tallying your revenue, verifying your time in business and determining if you have any collateral to pledge if you choose a secured loan.
Gather your documentation. Required documents typically include bank statements, tax returns, financial statements and other documents. You may also need to provide a business plan and personal guarantee if you’re a newer business owner.
Complete the application. Fill out the full application and upload the required documents or link to your financial accounts. Be sure to review the application for accuracy before submitting it to avoid delays in processing.
Wait for approval and funding. Online lenders tend to have fast approval and funding times — which means you could receive a decision the same day and funds in 72 hours or less.
Long-term business loans are available from online lenders, banks and credit unions. While you might secure a lower rate with a bank or credit union if you’re an established business owner, online lenders stand out for their faster processing times and more relaxed eligibility requirements, which may make it easier to get approved.
What should I do if I’m denied a business loan?
If you’ve been denied a business loan, here are three steps you can take to potentially correct the situation:
Ask the lender why they said no. Call the lender to discuss your application and ask why it was turned down. You may be able to address the issue and resubmit the application.
Take corrective action. Once you know the reason it was denied, try to rectify the situation. There may have been missing or inaccurate information on your application, or your credit score was too low when you applied.
Prepare a new application. When you’re in a position to reapply, try applying with the same lender or consider an alternative form of financing you’re more likely to get approved for.
It’s often easier to get approved for a secured loan backed by business assets. You could also apply for a personal loan if you don’t qualify for a business loan.
Alternatives to a long-term loan
Not ready to take out a long-term business loan? Consider these alternatives:
Personal loan. You may be able to use a personal loan for business expenses. Personal loans aren’t dependent on your business financials or time in business, which could work well for new business owners who don’t qualify for a business loan.
Business credit card. To pay for ongoing business needs, consider a business credit card. They can help boost your business credit score while you earn perks like points or cash back on your business expenses.
Grants. Business grants are free money through federal and state government agencies, as well as private organizations. However, since grants are free, competition is fierce, and they can take months to fund.
Investor financing. If you’re an entrepreneur, money from an angel investor can give you the cash you need to get your business off the ground. But beware: you’ll have to give up equity in your company in return.
Crowdfunding. Crowdfunding is a popular marketing tool and a good way to gauge interest in your product or service. It can help you gain potential customers while you drum up funding for your business.
Frequently asked questions
Yes, many lenders offer 10-year repayment terms to cover large business expenses. The specific terms you receive depend on the loan type, your business's financial health and the lender you choose.
Yes, you can. The SBA offers long-term options like SBA 7(a) and 504 loans that can be repaid over 20 years or more.
The longest repayment term for a business loan is typically 25 years, though a few select lenders may allow you to take up to 30 years to pay off your loan.
Qualifications for a long-term business loan usually include a strong credit score, at least two years in business and steady revenue. Lenders may also ask for financial statements, tax returns and sometimes collateral, depending on the loan amount and type.
It can take anywhere from a few days to several months to get approved and receive funding for a long-term business loan. The timeline really depends on the lender and the type of loan. Traditional banks and SBA loans usually take longer, while online lenders get you funded much faster.
Lacey Stark is a freelance personal finance writer for Finder, specializing
in banking, loans, investing, estate planning, and more. She has 20
years of experience writing and editing for magazines, newspapers, and
online publications. A word nerd from childhood, Lacey officially got her
start reporting on live sporting events and moved on to cover topics
such as construction, technology, and travel before finding her niche in
personal finance. Originally from New England, she received her
bachelor’s degree from the University of Denver and completed a
postgraduate journalism program at Metropolitan State University also
in Denver. She currently lives in Chicagoland with her dog Chunk and
likes to read and play golf.
See full bio
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