What is a Small Business Term Loan?
A business term loan is a lump sum of money you borrow from a lender, then pay back at fixed intervals — with interest — over a set period of time. Depending on your lender, you’ll pay off the loan on a weekly, bi-weekly, or monthly basis. Repayment periods can last from a few months up to 10 years or more.
Business term loans are great vehicles to invest in big purchases and long-term business growth. With long repayment periods and typically lower interest rates than credit cards, term loans give you ample time to generate a return on your investment before you have to pay your loan off.
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Ideal Financing For Your Business
Business term loans allow borrowers to pursue large-scale growth strategies while paying for the initiative over the life of the loan. Whether you are looking to tackle the next part of your business plan, open a new location, purchase/rent new equipment, expand into new markets, grow your team, or launch a new product, term loans can help you reach your next phase of growth.
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Business Term Loan Details
Advantages
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Lower interest rates
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Cash flow flexibility, as you can allocate your remaining cash for short-term operational expenses and emergencies
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Long term payment structure
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The interest is tax deductible
Disadvantages
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Keeping up with fixed payments can be difficult for businesses that experience seasonality or fluctuation
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Better suited for long-term projects rather than quick wins and cash flow stabilization
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Can be more difficult to qualify for
Will your business qualify?
Approval for a term loan from Mahomes Capital Funding isn’t based on your credit score alone. We focus on the overall health of your business. Here are some factors we consider:
Which documentation is required?
We at Mahomes Capital Funding want to make the funding process as simple as possible for you. Therefore, minimal documentation is needed for your application
650+ credit score
24+ months in business
$10,000+ average monthly bank deposits
Signed one page funding application
3-5 most recent months company bank statements
Business tax returns (not all cases)
