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Long-term business loans

When you're ready to grow your business, consider a 5- to 10-year loan to get your business the capital it needs.

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Editor's choice: SmartBiz business loans

SmartBiz business loans logo
  • Large network of SBA lenders
  • Low potential APR
  • Loans from $30,000-$5,000,000
Check eligibility
Determining the right type of financing to expand your business can make the difference between paying high fees and spending more money. Long-term loans often result in lower monthly payments that can ease the strain on your business’s budget. But smaller payments mean owing more in interest. Compare the terms and requirements of long-term lenders tp find the best option to help you invest in your business.

Top 5 long-term business loans

While the best loan depend on your business’s unique circumstances, these lenders could help businesses facing all types of financial need.

1. Funding Circle

A peer-to-peer business lender that offers a range of repayment terms to meet most budgets.

  • Term length: to
  • Loan amount: to
Get a Funding Circle business loan

2. SmartBiz

An SBA lender that also offers non-SBA bank term loans at affordable rates.

  • Term length: to
  • Loan amount: to
Get a SmartBiz business loan

3. Capital One

A big-name bank that may have strict requirements, but affordable repayment terms.

  • Term length: to
  • Loan amount: As low as

Read our Capital One business loans review

4. Chase

A popular bank for business loans that offers SBA loans, lines of credit and other financing types.

  • Term length: $5,000 to $500,000
  • Loan amount: 1 year to 7 years

Read our Chase business loans review

5. National Business Capital

A lender and connection service that could match you with a variety loan types to get the long term you’re looking for.

  • Term length: to
  • Loan amount: to

Read our National Business Capital business loan review

How do long-term business loans work?

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.

  • Loan terms. Loan terms last anywhere from one to 25 years, though most loans are somewhere in the five- to 10-year range.
  • Loan amounts. Your business could borrow from $5,000 to $500,000. For well-qualified businesses, loans can be over a million dollars.
  • Eligibility criteria. Lenders determine your business’s eligibility by examining business history, cash flow and credit score. Established businesses generally qualify for longer loan terms at better rates.
  • Documentation. You’ll need to provide quite a bit of documentation to back up your loan request, and even five-year loans require you to be in business at least a few years and have good to excellent business credit.
  • Security. Business loans can be unsecured or secured with collateral. Though unsecured loans don’t require collateral — you may need to sign a personal guarantee holding you liable if your business fails to repay.
  • Repayment. Most long-term loans have a fixed monthly repayment schedule making it easy to budget years in the future.
  • Loan purpose. Some lenders want to know how you plan to use your funds. Other’s leave it open to whatever your business needs.

Compare more business loan options

Data indicated here is updated regularly
Name Product Filter Values Loan amount APR Requirements
First Down Funding business loans
$5,000 – $300,000
Fee Based
At least 1 year in business, an annual revenue of $100,000+, and a minimum credit score of 400
Alternative financing up to $300K with highly competitive rates.
Lendio business loans
$500 – $5,000,000
Starting at 6%
Operate business in US or Canada, have a business bank account, 560+ personal credit score
Submit one simple application to potentially get offers from a network of over 300 legit business lenders.
ROK Financial business loans
$10,000 – $5,000,000
Varies
Eligibility criteria 3+ months in business, $15,000+ in monthly gross sales or $180,000+ in annual sales
A connection service for all types of businesses — even startups.
OnDeck small business loans
$5,000 – $250,000
As low as 9.99%
600+ personal credit score, 1 year in business, $100,000+ annual revenue
A leading online business lender offering flexible financing at competitive fixed rates.
Rapid Finance small business loans
$5,000 – $1,000,000
Fee based
Steady flow of credit card sales, bad credit OK
Fundbox business loans
$1,000 – $100,000
4.99
You must have an established business.
Get flat rate, short-term financing based on the financial health of your business, not your credit score.
Kickpay e-commerce business loans
$20,000 – $1,000,000
Not applicable
At least $250,000 in the past 12 months of revenue, e-commerce business, use a 3rd party fulfillment center for storing and shipping inventory, at least one US location.
Get a loan for your e-commerce business based on your sales history.
Fundera business loans
$2,500 – $5,000,000
7% to 30%
$300,000+ of annual revenue, 680+ personal credit score, in business for 3+ years
Get connected with short-term funding, SBA loans, lines of credit and more.
LendingClub business loans
$5,000 – $500,000
12.15% to 29.97%
12+ months in business, $50,000+ in annual sales, no bankruptcies or tax liens, at least 20% ownership of the business, fair personal credit score or better
With loan terms that vary from 12 to 60 months, enjoy fixed monthly payments and no prepayment penalties through this award-winning lender.
Monevo business loans
$500 – $100,000
3.99% to 35.99%
Credit score of 500+, legal US resident and ages 18+.
Use this connection service to get paired with a loan you can use for business.
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How long should my loan term be?

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.

5-year terms are best for

  • New businesses.
  • Owners with fair to good credit.
  • Paying less total interest.
10-year terms are best for

  • Established businesses.
  • Owners with good to excellent credit.
  • Lowering monthly payments.
25-year terms are best for

  • Both new and established businesses.
  • Businesses purchasing long-lasting equipment.
  • Businesses purchasing real estate.

Which lenders offer business loans with 5-year terms?

LenderLoan amountBest for
LendingClub$5,000–$300,000Businesses that need large loan amounts to be repaid quickly.Go to site
Fundation$20,000–$500,000Small businesses that want the speed of an online lender with the underwriting process of a bank.
Wells Fargo$10,000–$100,000Businesses looking for a smaller loan with a well-known bank.

What will borrowing a long-term business loan cost?

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.

Calculating the cost of your loan

For example, let’s say your business has good credit. You’re looking for a $100,000 unsecured loan and a lender that’s willing to give you an interest rate of 4.50% or less.

  • 5-year loan term. Your monthly payment would be $1,864.30, costing $11,858.12 in interest.
  • 10-year loan term. Your monthly payment would be $1,036.38, costing $24,366.09 in interest.

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.

What should I look for in a long-term business loan?

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:

  • Lender reputation. You might have better luck with a lender you’re familiar with, but pay attention to online reviews — plenty of lenders new to the market have glowing reviews.
  • Processing speed. Long-term loans usually take longer to process, and if you’re looking into an SBA loan, you should expect processing times to take many weeks.
  • Competitive APR. By comparing lenders, determine who has the best interest rates and how much your loan costs in the long run.
  • Repayment term. Consider payment terms that suits your business’s revenue. Some lenders require weekly or daily repayments that can disrupt your cashflow — especially when business is slow.
  • Fees. Find out if lenders charge application or late fees for missed payments. If you think you could repay your loan early, check that it doesn’t charge a prepayment fee.

How do I apply for a long-term business loan?

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.

Important documents and personal information

  • Bank statements. Lenders request your business’s bank statements to analyze cash flow from the past months. This proves you know how to manage your finances and can afford to repay your loan.
  • Profit and loss statement. A profit and loss statement shows the actual profit of your business. This helps lenders determine how much your business makes and whether it can handle a loan.
  • Tax returns. Lenders use your business or personal tax returns to gauge how much you and your business make annually.
  • Credit report. Your personal and business credit report shows your overall score, payment history and if you’ve defaulted in the past to determine the risk of lending to your business.

Bottom line

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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