Uploaded on Feb 1, 2021
Searching for a simple and flexible funding option to achieve your small business’ short and long-term goals, applying for a term-loan could be your best option.
How to Apply and Secure a Term Loan for Your Small Business
How to Apply and Secure a Term Loan for Your Small Business Searching for a simple and flexible funding option to achieve your small business’ short and long-term goals, applying for a term-loan could be your best option. Whether you want to invest in real estate, buy equipment, or cover day-to-day business’ expenses, this small business financing can be used for a variety of business purposes. In a term loan, you’re given a lump sum of cash that you have to repay over time in scheduled installments. Both startups and established businesses can apply for term loans and can be either long-term and short-term. The term loan requires a business to provide the lender with some type of collateral. Maturity :- These loans are generally repayable over a period of 5 to 10 years in installments. Interest :- Though the interest rate is fixed in term loans, the borrower can negotiate the interest rate with the lender at the time of dispersing a loan. Funding Time :- As fast as 2 days Requirements ● A minimum of 1-year business history ● a minimum credit score of 680 ● $100,000+ in annual revenue ● Must be Profitable How to Apply for a Term Loan? While you can apply through a traditional bank, it’s suggested to apply through an online alternative lender. Banks have a complicated loan approval process while alternative lenders use various technologically-advanced web-based applications to offer easy and faster funding. Documents you need before applying: ● Driver’s License ● 2 years of personal and business tax returns ● Business certificate or license ● Loan application history ● Business plan ● Credit score ● Balance sheet ● Bank statement ● Profit and Loss statements ● Voided business check Find and Compare Best Term Loan Offers Use Smansha to find and compare a variety of term loan offers from multiple lenders and choose one that best fits your current financial needs. Once approved, you can get the funds into your bank account in as little as 24-48 hours.
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