Business opportunities through flexible funding.
What is a Term loan?
Term loans are especially great for established businesses with a sound financial situation. You might be regularly pulling in a sufficient amount of cash, but you might still be able to benefit from an up-front cash advance!
A term loan can provide your small business with a large advance with regular, reliable and sustainable payment terms. The best part? It’s easy to apply for, and even easier to pay back.
How does a term loan work?
Term loans, much like regular merchant cash advances (MCA), are upfront payments designed to be paid back over a certain amount of time. The main difference is that while any business might benefit from a standard merchant cash advance, a term loan is optimized to give established business the biggest benefit.
You’ll agree to repay the loan in a set period of time, though there aren’t any restrictions on how you can pay the balance back! An MCA will require a certain split of the credit card takings to ensure that the balance is cleared, whereas a term loan will allow you to repay the balance however you like.
Why choose a term loan?
Term loans carry better benefits for established businesses with sound financial statements; if you can prove that you’re able to successfully operate your business, a term loan will reward you with more freedom over your payments and a potentially larger amount of borrowed cash.
Most types of alternative lending will carry a maximum amount of $2,000,000, which may be restrictive depending on the type of business that you operate. With a term loan, we could lend you up to $5,000,000 with no restrictions on how you spend the money.
Term loans generally provide more freedom than other types of loans, too. You aren’t bound by any particular payment structure, as long as you can pay the total balance within the agreed timescale.
To qualify for a term loan, you do need to be able to prove your financial situation through your statements.
How much can you borrow?
As touched on above, small business can borrow up to $5,000,000! That’s more than double what you could be eligible for when you apply for a credit card split or a merchant cash advance.
Unlike most other cash advances, there is no minimum amount of funding; you only need to borrow what your business needs.
It’s important to note that will only receive funds up to an amount that is certain you can pay back within the agreed time scale.
When will you get the funds?
If you apply for a term loan, youu need to provide your financial statements as well as some information about your business in general. It can take a little bit of time to look into these documents and establish the total amount of money to consider lending, but don’t worry – you can gain access to the cash in as fast as 2 weeks.
Payment terms will be slightly different from the other types of services that Borrowble can provide. You will typically get a term – between 3 to 5 years – during which you can pay back the balance.