Reviewed nationwide, all 50 states
Business term loans: fixed rate funding, bad credit considered
A business term loan gives your company a lump sum upfront, repaid through fixed monthly payments over a set schedule. Traditional banks often look for a 680 or higher personal credit score, SmallByzLoans considers a wider range. The short form runs a soft credit check only, so checking your options does not affect your score.
What is a business term loan?
A business term loan is a lump sum your business borrows and repays over a set period, usually with a fixed interest rate and a fixed monthly payment. Interest begins accruing on the full amount from day one, which is different from a revolving product where you only pay for what you use. Because payments are scheduled and predictable, this program is sometimes called a business installment loan.
Term lengths vary. Short-term options run under two years, medium-term loans commonly run two to five years, and longer options can extend past five years for qualified files. If you are specifically searching for a 5 year business loan or a long term business loan, both are reviewed as part of this same program. The exact term offered depends on the lender, your revenue, and your credit profile.
Types of term loans
| Type of term loan | How it works | Typical source |
|---|---|---|
| Short-term loan | Under about 2 years, often with weekly payments; faster approval, higher cost | Online lenders |
| Medium-term loan | Around 2 to 5 years with fixed monthly payments | Online lenders and banks |
| Long-term loan | 5 to 10 years or more for larger investments | Banks and SBA lenders |
| SBA term loan | Government-guaranteed; up to 10 years for working capital and equipment, up to 25 for real estate | SBA lenders |
| Secured term loan | Backed by collateral such as equipment or real estate, usually at a lower cost | Banks and online lenders |
| Unsecured term loan | No specific collateral, usually with a personal guarantee | Online lenders |
General patterns, not offers. Terms and eligibility are set by each lender.
See how term loans compare with lines of credit, SBA loans, and other options in the 7 types of business loans.
Lenders size term loans to your cash flow. Check yours with the debt service coverage ratio calculator, or see how to finance buying a business. To see every payment split into interest and principal, use the amortization schedule calculator.
Business term loan requirements
Requirements vary by lender type. Traditional banks and credit unions typically look for a personal credit score of 680 or higher and at least two years in business. Alternative and online-style lenders, including the programs SmallByzLoans reviews, tend to weigh revenue and cash flow more heavily and commonly consider mid-600 credit profiles.
| Traditional Bank | SmallByzLoans Review | |
|---|---|---|
| Credit score | Often 680 or higher | Mid-600 commonly considered |
| Time in business | Usually 2+ years | Shorter histories reviewed |
| Application | In person or a lengthy online form | Business term loan online, 60-second short form |
| Credit check on step one | Often a hard pull upfront | Soft check only |
Most lenders, regardless of type, will ask for a few months of bank statements and basic business information. See the full documents checklist to prepare in advance.
Fixed rate and repayment: how a business term loan works
Most business term loans carry a fixed rate, so your payment stays the same every month for the life of the loan, which makes budgeting simpler than a variable-rate product. Smaller term loans are often unsecured, no collateral required, while larger requests may require collateral depending on the lender. Most agreements still include a personal guarantee.
An origination fee is common when the loan is issued. Some lenders charge a fee for paying the loan off early, so ask about prepayment terms before you sign, not after.
Business term loan vs. line of credit
A term loan and a line of credit solve different problems. Here is a quick side-by-side to help you decide.
| Business Term Loan | Line of Credit | |
|---|---|---|
| Funds | Lump sum upfront | Revolving, draw as needed |
| Interest charged on | The full amount from day one | Only the amount you draw |
| Rate type | Usually fixed | Often variable |
| Payment | Fixed monthly installment | Flexible, based on balance |
| Best fit | One planned purchase or investment | Ongoing or fluctuating cash flow needs |
Need ongoing access instead of a single lump sum? Explore Lines of Credit.
Benefits of a SmallByzLoans business term loan
01
Mid-600 credit profiles commonly considered
Well below what many banks require.
02
Fixed monthly payment
For predictable budgeting from the first payment to the last.
03
Business term loan online
No branch visit required, the same 60-second form starts the review.
04
No hard credit check to review your options
The short form runs a soft check only.
05
Funding from $10,000 to $10,000,000
Reviewed for straightforward files with a specialist matched to your file.
06
Terms from short-term to several years
Available for qualified files.
Is a business term loan right for your business?
A term loan tends to fit a single, planned purchase, equipment, a build-out, an acquisition, or refinancing higher-cost debt into one predictable payment. If you are financing a specific piece of equipment, Equipment Financing may offer better terms since the equipment itself often serves as collateral.
If your need is more about smoothing uneven cash flow than funding one purchase, a Line of Credit or Working Capital program may be a better fit. If speed matters more than a fixed schedule and your revenue is strong but your credit is not, compare against Merchant Cash Advance.
Bank turned us down because of my credit score. SmallByzLoans looked at our monthly revenue instead and approved us for equipment financing.
James T. / Trucking business, Texas
How to apply for a business term loan
01
Submit the 60-second form
Revenue, credit range, requested amount, and funding purpose. No documents required to start.
02
A funding specialist reviews your file
Matched against business term loans and other programs that fit.
03
Complete the full application
Review your rate, term length, and payment schedule before you sign, then receive funds.
Frequently asked questions
Q01What is a business term loan?
A business term loan is a lump sum your business borrows and repays through fixed monthly payments over a set period, usually at a fixed interest rate. It is sometimes called a business installment loan because the schedule and payment amount are set in advance.
Q02Can I get a business term loan with bad credit?
Often, yes. Traditional banks typically look for a 680 or higher credit score, but SmallByzLoans reviews revenue and cash flow alongside your score, and mid-600 profiles are commonly considered.
Q03Is there a business term loan with no credit check?
The short form on this page runs a soft check only, so checking your options does not affect your credit score. "No credit check" marketing usually means no hard pull at this stage, not that a lender skips reviewing your file before funding. A hard credit check may still occur later if you continue into a full application with a specific lender.
Q04Can I apply for a business term loan online?
Yes. SmallByzLoans reviews requests in all 50 states, so there is no branch to visit. The same 60-second form starts the review no matter where your business is located.
Q05What is the difference between a term loan and a line of credit?
A term loan gives you a lump sum upfront with a fixed monthly payment and interest charged on the full amount from day one. A line of credit is revolving, you draw what you need, repay it, and draw again, paying interest only on the amount drawn.
Q06Can I get a 5 year business loan?
Longer terms, including options around 5 years, are available for qualified files. The exact term depends on the lender, your revenue, time in business, and credit profile.
Q07Is a business term loan unsecured?
Smaller term loans are often unsecured, with no lien on real estate or equipment required. Larger requests may require collateral depending on the lender, and most agreements still include a personal guarantee.
Q08What are the types of term loans?
Term loans are grouped by length (short-term under about 2 years, medium-term around 2 to 5 years, and long-term 5 years or more), by security (secured or unsecured), and by source (online lender, bank, or SBA lender). See the types table above.
Q09Can I get a 7-year business loan?
Yes, for qualified files, most often through a bank or an SBA loan. SBA 7(a) loans can run up to 10 years for working capital and equipment and up to 25 years for real estate. Online term lenders usually offer shorter terms.
Sources and further reading
- 7(a) loans, U.S. Small Business Administration
- Fund your business, U.S. Small Business Administration
- Small Business Credit Survey, Federal Reserve Banks
Financial disclaimer: This page is for general informational purposes and does not constitute financial, legal, or tax advice. Business term loan rates, terms, and collateral requirements vary by lender and are not set by SmallByzLoans. Speak with a qualified financial professional before signing. Credit approval is subject to lender standards, and actual terms, rates, and funding amounts vary by applicant and lender.
Your next investment deserves a predictable payment
Start with the 60-second form. No documents, no hard credit check, no cost to check your options.