A business term loan is the structure most owners picture when they think "loan": borrow a fixed amount, repay it on a fixed schedule. Alternative lenders deliver that same structure in days instead of months — with more flexibility on credit and collateral than a bank.
When a term loan is the right tool
- Planned projects with a known budget — a build-out, a second location, a big equipment purchase
- Predictability matters — one fixed payment you can plan around all year
- Consolidation — refinancing multiple advance balances into one structured payment
- Building credit history — consistent payments on a structured product strengthen your file for cheaper capital later
Typical qualification profile
- 1–2+ years in business (longer history unlocks better terms)
- $15K+ in monthly revenue with steady deposits
- Credit in the 650+ range preferred — if you're below that, an Revenue Based Financing or working capital program may fit better today
- Clean recent banking: minimal overdrafts and negative days
Requirements vary by lender; approval and terms are subject to underwriting. Mid-600 profile? Start with what a 650 score qualifies for.
💡 Pricing tip: term loan offers quote an interest rate or total payback. Compare offers by total cost of capital and monthly payment vs. your cash flow — not just the headline rate.
Term loan vs. MCA at a glance
- Speed: term loans take a few days to a couple of weeks; MCAs can fund faster
- Cost: term loans are generally cheaper for those who qualify
- Payments: fixed (term loan) vs. tied to sales activity (MCA)
- Credit bar: higher for term loans, lower for MCAs
Full comparison with examples: MCA vs. Business Term Loan.
What you'll need
Start with the short form. Term loan files typically add a tax return and a year-to-date P&L on top of bank statements — the complete list is in the document checklist.
Get a term loan review started today
One 60-second form covers term loans, MCA, and working capital — a specialist matches you to what fits.
Check My Funding Options