Editor's choice: SmartBiz business loans
- Large network of SBA lenders
- Low potential APR
- Loans from $30,000-$5,000,000
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While the best loan depend on your business’s unique circumstances, these lenders could help businesses facing all types of financial need.
A peer-to-peer business lender that offers a range of repayment terms to meet most budgets.
An SBA lender that also offers non-SBA bank term loans at affordable rates.
A big-name bank that may have strict requirements, but affordable repayment terms.
A popular bank for business loans that offers SBA loans, lines of credit and other financing types.
A lender and connection service that could match you with a variety loan types to get the long term you’re looking for.
Long-term business loans give you access to working capital for long-term expenses like new equipment, inventory, refinancing past business debt and investing in real estate.
The length of your term is determined by you much your business can afford to pay monthly and in the long run. The longer the term, the lower the monthly repayments, however you’ll pay back more interest overall.
|Lender||Loan amount||Best for|
|LendingClub||$5,000–$300,000||Businesses that need large loan amounts to be repaid quickly.||Go to site|
|Fundation||$20,000–$500,000||Small businesses that want the speed of an online lender with the underwriting process of a bank.|
|Wells Fargo||$10,000–$100,000||Businesses looking for a smaller loan with a well-known bank.|
The cost of a business loan depends primarily on the interest rate and the length of your loan term. Other factors include your business and personal credit scores, collateral and the purpose of the loan.
Loan terms impacts the amount you pay in interest over the life of the loan and your daily, weekly or monthly payments amounts.
Unfortunately, the cost of long-term business loans vary based on your business needs, and can be hard to determine without applying first.
Based on this, a five-year loan term would cost about $800 more per month — which could strain your business’s finances — but it would cost you about $12,000 less over the life of your loan.
While other factors play a role, the total cost of interest for a long-term loan matter when you’re comparing financing options. A higher interest rate costs you more, no matter how long or short your loan term is.
Look for lenders that are flexible and willing to negotiate payment terms. When comparing options, keep the following factors in mind to make your decision easier:
Compare your options from our list of business loan lenders or research other bank options. Start applying once you have your documents and a solid business plan outlining how you’ll use the money. Long-term loans may require more paperwork and time than loans with shorter terms, but the process is generally quite similar between lenders.
Lenders require you fill out an application and submit both personal and business documents. The underwriting phase may take anywhere from a few days to a few weeks. If your business is approved for a loan, you’ll receive a loan agreement with the details of your loan, including repayment schedule and interest. Once you agree to the terms, funding could take up to a few weeks.
When it comes to long-term business loans, there’s a lot to consider. You’ll want to carefully review how much capital you need and the payments your business can handle before committing to a specific lender, but you could find a loan that can really make an impact on your business’s future. Just remember that a longer loan term often results in your business paying more for interest. Take into account the fees, interest and loan term to get the best deal, and don’t forget to compare different business loan options to find the best option that can help your business grow.
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