Loan Amount
$25k – $1MM
Term
1 to 5 Years
Time to Funding
As few as 48 Hours
Interest Rate
TBD
A long term loan which is paid back with regular payments over time, including interest. This type of loan is extremely flexible and can be used for almost any business purpose. A mortgage is the best known example of a term loan.
Examples
Term loans come with a wide variety of structures and terms, from short term loans with daily payments to five years with monthly payments.
The most common type of business loan, traditional term loans are what most people think of when they look for a loan. The bank or other financial institution loans you a lump sum of money, usually secured against collateral, and you pay that money back, principal and interest, with regular payments over a set time period. Interest can be fixed or variable, depending upon the amount of the loan and what the loan is for. The most common type of term loan, and the one we're all familiar with, is a mortgage for a home or commercial property. Term loans work the same way.
While these loans usually come from a bank, there are other lending institutions available. Big Think keeps a comprehensive list of these lenders. Some lenders will only deal with certain types of businesses, while others focus on specific geographic areas.
If you qualify for this type of loan, you can use the money for anything your business needs, from equipment to expansion to covering short term cash shortages.
Benefits
Drawbacks
At Wisco Capital, we can help you structure the best loan for your needs. If you’re confused or need clarification about the qualifying requirements for a loan, please contact us. We’ll be happy to help.