Updated October 20, 2021
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Running a business comes with financial challenges and expenses. At ICapital Funding, we understand that companies may need access to a more considerable sum of capital than they have available due to expanding their company, unexpected costs, or purchasing a property. We are pleased to offer long-term small business loans at competitive rates to help your business get the funding it needs.
What is a Long Term Business Loan
Companies will take out a small business loan or long-term business loan to cover a significant business expense, such as purchasing new equipment, hiring employees, or working capital. The company will pay back the loan in installments plus interest over a few years. Long-term business loans allow companies to pay back the borrowed sum over a more extended period than with a short-term business loan, which translates into lower monthly payments for the borrowers.
What is considered long-term? We categorize loans due in more than a year as long-term, but long-term business loans generally have five years or more to be repaid. Many businesses want a loan over as many years as possible in order to break down their monthly payments into smaller amounts.
SBA (Small Business Administration) Loans
SBA loans are facilitated by the government, which loans the money to a financial lender or other agency that will loan it to the business owner. These loans usually have the best rates, favorable terms, and the longest repayment deadline. SBA loans usually have a 10-year repayment schedule for working capital and business material and 25 years for properties and more significant assets.
SBA loans are great for businesses that want to pay off debt or need capital to expand their company.
Qualifications for an SBA include having good annual revenue, have an excellent personal credit score above 600, and have been in business for a minimum of two years. You may need to provide collateral for some categories of loans.
Banks, credit unions, and traditional lenders offer businesses long-term business loans with repayment terms of a few years. These loans’ interest rates vary based on the company’s credit history, annual revenue, and other financial considerations.
Our team at ICapital Funding has years of experience working together with small businesses to secure them the best commercial loans and rates. Our online application process is streamlined and easy to use. You can expect to receive our response to your funding request within a few hours and to receive your loan with 24 hours from when we approve your request.
Get a Long Term Business Loan for your Business
Small Business Resources
The iCapital Businesss Loan Insider blog is full of timely articles that will help youunderstand some of the challenges faced by many small business owners like yourself. From new products for small business loans business loans, to emerging trends and regulation, iCapital is engaged in the business of small business loans ownership at many levels.If you have a story idea you would like to share or want us to cover specific topic such as small business funding, small businessoperations or marketing, let us know and we will try to add it to an upcoming article or social media post.