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.
Here’s a closer look at the best long-term business loans to help you compare.
Funding Circle is an investor-backed lending platform that's highly rated by thousands of past customers. It specializes in helping small businesses access fast, competitively priced loans and financing options. Its long-term loan options include business term loans up to $500,000 with repayment terms of 6 months to seven years, SBA loans up to $5 million with repayment terms of 10 to 25 years and USDA-backed loans up to $25 million with repayment terms of 7 to 30 years for business owners in rural areas.
It's invested over $20 billion in 135,000 businesses around the globe — including women and minority-owned businesses — and uses an advanced technology platform that can give borrowers an approval decision in just minutes. But, unlike some lenders, it charges an origination fee between 4.49% and 10.49%.
Pros
Investor backed funding
No prepayment penalties
Quick, streamlined application
Cons
Term loans cap out at $500,000
High minimum loan amount
Origination fee applies
Loan amount
$25,000 – $500,000
APR
starting at 7.49%
Loan term
6 months to 7 years
Requirements
660+ credit score, 2+ years in business, operates in an approved industry, no bankruptcies in the past 7 years.
Lendio is a business loans marketplace with 75+ partners that offer a range of long-term business loans, including term loans, SBA loans, equipment financing, business acquisition loans and commercial mortgages. The benefit of using a marketplace is that you can compare multiple lenders with a single form, saving you time and effort.
Customers like Lendio for its fast, streamlined application process and experienced loan officers — having support can be helpful when you're not entirely sure which loan is best for your situation. Lendio is also known to be fast. It offers a 24-hour turnaround on its term loans and equipment financing options.
Pros
Options for bad credit
Rates as low as 3% APR
Excellent customer reviews
Cons
Not a direct lender
Funding fees apply to your loan
Marketing may continue after being funded
Loan amount
$1,000 – $5,000,000
APR
Varies by lender
Min. Credit Score
500
Loan term
3 months to 25 years
Requirements
Operate business in US or Canada for 6 months or more, have a business bank account, minimum 520 personal credit score, at least $8,000 in monthly revenue.
SBA business loans are long-term loans of up to 30 years and are partially backed by the government, which means less risk to the lender and lower rates for you. But it may be harder to qualify for an SBA loan than other loan types, as you must show a certain amount of revenue and time in business.
The Huntington National Bank is an SBA Preferred Lender with the highest number of approvals for SBA loans in the nation, making it our best pick for this category. It offers the 7(a), Express and 504 loans with down payments as low as 10% and loan amounts up to $5 million. As a top SBA lender, it has dedicated SBA loan specialists to help with your application.
Pros
SBA Preferred Lender
May offer faster turnaround times than regular lenders
High number of approvals compared to other lenders
Cons
No SBA Microloans
Mixed customer reviews
Loan amount
$5,000 – $5,000,000
APR
Varies
Loan term
Up to 300 months
Requirements
Meet the SBA requirements for a government-backed loan
If you're an established business owner with good credit, Bank of America may offer some of the lowest rates available. While it doesn't have many long-term loan options, its Business Advantage Term loan offers fixed rates as low as 7.25%, and you could shave an additional 0.25% to 0.75% off that rate with BofA's relationship discounts.
To qualify, you need a minimum FICO score of 700, at least two years in business and a minimum annual revenue of $100,000. But you may need to provide more documentation than with an online lender, and turnaround times could be slower. For loans over $50,000, you'll need to work with a dedicated specialist at the bank.
Pros
SBA Preferred lender
Potential for reduced rates
Full suite of business banking products
Cons
Origination fee of $150
Pattern of customer complaints
Online application may not be available
Loan amount
$10,000 – $100,000
APR
Starting at 7.25%
Min. Credit Score
Not stated
Loan term
12 to 60 months
Requirements
Good credit, 2+ years in business, $100,000+ revenue
Rapid Finance is a highly-rated fintech lender that stands out for its customer service and fast turnaround times. The company offers several types of long-term loans, including term loans, SBA loans, asset-based loans, bridge loans and commercial real estate (CRE) loans with terms of up to 30 years.
To get started, you may only need to show three months of business bank statements and your business tax ID — much less documentation than what most other lenders require. If approved, you could have funds in your bank account in just a few hours. Customers praise the company for its streamlined process, fair terms and quick turnaround.
Equipment loans can be ideal for business owners who don't want to use cash, credit cards or lines of credit to purchase equipment. Because they're backed by collateral and secured by liens, equipment loans can generally offer more competitive rates and terms than other types of unsecured loans.
Taycor Financial offers both equipment leasing and financing options with 0% down, and you could get approved up to $400,000 with no tax returns required. Plus, Taycor is known for working with borrowers with poor credit, as low as 550. But there's not a lot of information about its loans online, and origination fees may apply.
Pros
Low-documentation application process
Large maximum loan amounts
Can be in business fewer than 2 years
Cons
Mixed reviews online
Liens are placed on equipment
Origination fees may apply
Loan amount
$400,000+
APR
Varies
Requirements
Have been in business for less than two years
Loan amount
$400,000+
APR
Varies
Min. Credit Score
550
Methodology: How we chose these lenders
Our lending experts analyze dozens of business loan providers to narrow down the best options for business owners. 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 will be, 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 generally 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 be sure 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% on your loan. 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 funds 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) website are a great place to learn about past customers’ experiences with a particular lender.
How long-term business loans work
Long-term business loans offer a lump sum loan — typically at a fixed interest rate — that you repay with fixed payments over three to 30 years. The loan starts accruing interest as soon as you receive it. This differs from a line of credit or credit card, which only charges interest on what you borrow.
Repayments on long-term business loans are usually monthly, whereas short-term loans may require bi-monthly, weekly or even daily payments. This means payments are typically lower with a long-term loan but with more interest paid over the long run.
However, the interest on your long-term loan payments may be tax deductible, and some long-term loans, like commercial real estate loans, may offer interest-only payments during the loan term, allowing you to reduce your cash outflow.
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
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 often takes more than just 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 loans 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 Learn more to visit the lender’s site or More info to read our review.
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 type of 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 was 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 your application was turned down. You may be able to fix the problems 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 corporations. 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 judge interest in your product or service. It can help you gain potential customers while you drum up funding for your business.
Frequently asked questions
Can you get a 10-year business loan?
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.
Can you get a 20-year SBA loan?
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.
What is the longest term for a business loan?
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.
What are the qualifications for getting a long-term business 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.
How long does it take to get approved and receive funding for a long-term business loan?
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
Getting a business loan can be hard when banks and other traditional lenders have strict requirements. See what startup loan options are available.
How likely would you be to recommend Finder to a friend or colleague?
0
1
2
3
4
5
6
7
8
9
10
Very UnlikelyExtremely Likely
Required
Thank you for your feedback.
Our goal is to create the best possible product, and your thoughts, ideas and suggestions play a major role in helping us identify opportunities to improve.
Advertiser disclosure
Finder.com is an independent comparison platform and information service that aims to provide you with the tools you need to make better decisions. While we are independent, the offers that appear on this site are from companies from which Finder receives compensation. We may receive compensation from our partners for placement of their products or services. We may also receive compensation if you click on certain links posted on our site. While compensation arrangements may affect the order, position or placement of product information, it doesn't influence our assessment of those products. Please don't interpret the order in which products appear on our Site as any endorsement or recommendation from us. Finder compares a wide range of products, providers and services but we don't provide information on all available products, providers or services. Please appreciate that there may be other options available to you than the products, providers or services covered by our service.
We update our data regularly, but information can change between updates. Confirm details with the provider you're interested in before making a decision.
