Loan Terms – 1 year to 10 years
Interest Rate – 6% to 49%
Minimum FICO Score – 500
Payback – Monthly
Funding Time – 5 to 60 Days
About Traditional Term Loans
A Traditional Term Loan is probably the most common form of business loan, so it’s pretty easy to understand. You borrow a fixed amount of money – often for a specific purchase you’re making for your business – and pay the loan back over a fixed term, most often at a fixed interest rate.
Traditional term loans are generally reserved for the more established companies. Ones with solid financials, 2+ years in business, and strong credit; both personal and business. New borrowers will have to supply an application where underwriting will verify experience. You will also need to have the ability to pay back the loan and provide P&L statements from the past year.
What is a Traditional Term Loan?
A term loan is what comes to mind, when one thinks of a more traditional. Generally, term loans provide a fixed payment over 1 to 5 years and are normally backed by collateral such as a car or another tangible asset. They can also be used for a wide range of business purposes.
Which Businesses Are A Good Fit?
Term loans are forms of debt financing. Business owners can use them to acquire or fund expansions, cover working capital expenses, gain financial assistance or improvement, and a wide range of other business activities. These types of loans are provided by both traditional banks and non-traditional lenders. Any business that has been in operation for more than two years with good credit can utilize a term loan. Collateral is required most of the time, however, unique situations do occur that are unsecured.
What are the Minimum Requirements?
Generally, most lenders will consider your credit score, time in business, and potentially collateral to determine whether or not the business owner will be able to get the loan. It is in the best interest of the business owner to have excellent credit, solid P&L statements, and 12 months of its bank statements.
Why Use VentureLynk?
VL’s mission is to empower your business by making small business loans simple through options, speed, and trust. No matter the financing structure you may need, VL offers countless different loan products from a variety of lenders. Finding out which business loan is best for you is why we’re here.