Business Term Loans in Apalachicola Florida

Business Term Loans in Apalachicola Florida

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Business term loans in Apalachicola Florida provide a borrower with a lump sum up front that is then repaid at regular intervals. These term loans can be set to daily, weekly, monthly and yearly. There are quite a few extra options available like a fixed or floating interest rate. So let's dive a bit deeper into how a business term loan can help your small business.

The “term” in “term loan” comes from it's set repayment term length. Which can range from a few months to several years depending on the type of loan. Therefore, although Apalachicola Florida term loans can vary in length, the phrase “business term loan” is most often used to refer to loans with terms or one to five plus years.

How can you use a business term loan in Apalachicola Florida

How can you use a business term loan in Apalachicola Florida

As mentioned briefly above, business term loans are likely what you think of when it comes to commercial (or even personal) financing. With a term loan, a small business lender gives you access to a lump sum of capital which you then pay back, with interest and fees, over a set period of time.

Although your payment schedule will vary based on the type of business term loan and the lender you're working with, you'll make equal payments over the course of your loan term.

This being said, Apalachicola Florida business term loans in can be issued by banks, credit unions, and online lenders. In general, banks and credit unions will offer the most ideal rates and terms, but will also require top qualifications and will be slower to fund. Online lenders, on the other hand, will offer greater flexibility and faster funding times, but will likely be more expensive and have shorter terms.

Overall, in addition to a predictable payment schedule, one of the benefits of business term loans is that they can be used for a variety of business financing purposes. Therefore, with medium and long-term loans (vs. short-term loans), you'll find that these loans are often used for:

  • Purchasing equipment or inventory
  • Working capital
  • Refinancing other business debts
  • Hiring staff
  • Meeting payroll or tax obligations
  • Financing business expansions
  • Purchasing real estate
  • Funding general long-term investments
How to Apply for a Business Term Loan in Apalachicola Florida: Requirements and Getting Started

How to Apply for a Business Term Loan in Apalachicola Florida: Requirements and Getting Started

To apply for a business term loan in Apalachicola Florida, as quickly as possible. Below you will see a form asking for your basic business information. By filling that out, step one is done. From there one of our loan specialists will give you a call walking you through the next step.

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With this in mind, once you've determined where you're likely to qualify, you'll be ready to start preparing your business loan application.

Again, the application process will largely depend on the lender; alternative lenders typically offer online-based, streamlined applications with minimal documentation, whereas banks are more likely to require extensive documentation and an in-person or paper application.

Overall, however, you should expect to provide some (if not all) of the following when applying for a business term loan:

  • Basic personal and business information, including a drivers license, voided business check, proof of ownership, business license, etc.
  • Personal and business bank statements
  • Financial statements such as your balance sheet and profit and loss statement
  • Personal and business credit score
  • Personal and business tax returns
  • Proof of collateral (if required)

Moreover, as we mentioned, many lenders will require that you sign a personal guarantee for your Apalachicola Florida based loan, whereas others will take out a UCC-lien on your business's assets. Before signing any agreement, therefore, you'll want to thoroughly review all of the details to ensure you understand the terms, fees, and liabilities.

I know that's a bit of information so If you like to speak with us feel free to give us a call: 386-825-5626
Business Term Loan in Apalachicola Florida Example

Business Term Loan in Apalachicola Florida Example

To get a better sense of how business term loans work, let's walk through an example.

Let's say you're offered a term loan of $250,000 with monthly payments and a two-year term. The interest rate on this loan is 8% and you're paying the lender an origination fee of 2%.

With this information, you can plug-in the numbers into a term loan calculator to estimate your monthly payments as well as determine how much this loan will cost your Apalachicola Florida based business.

Overall, you'll be making monthly payments of $11,306.82 to the lender with a total repayment of $271,363.75. The cost of this loan, therefore, is $26,363.75. In addition, you can also use these calculations to determine your APR, as opposed to the simple interest rate. If your interest rate is 8%, but you also have an origination fee of 2%, your APR will end up being higher than that quoted 8%.

In this case, the APR on the loan is 10.01%.

Business Term Loan Breakdown

Let's take a look at a simple 6 month $20,000 business term loan at 6% interest rate. This will give you a better understanding of the term loan breakdown.

DatePaymentPrincipalInterestTotal InterestBalance
Types of Apalachicola Florida Business Term Loans

Types of Apalachicola Florida Business Term Loans

The phrase “business term loan” can actually encompass a variety of financial products that all share this term structure. Therefore, it's important to distinguish between the different types of business term loans. Generally, as we've already seen so far in this discussion, the most common way to differentiate business term loans is by the length of their repayment period short-term, medium-term, or long-term.

  • Short term business loans: Short term loans have repayment periods of one year or less (sometimes up to 18 months). These loans are usually issued by online lenders, have the most flexible qualifications, and are the fastest to fund. Short-term loans, however, are also typically the most expensive type of business term loan.
  • Intermediate or Medium term loans: Medium-term loans have repayment periods of one to five years. These loans are available from online lenders, as well as banks and credit unions. Although these products may have higher requirements and be slower to fund than short-term loans, they're usually much more affordable.
  • Long term business loans: Although in some instances medium-term and long-term loans are used interchangeably, in general, long-term loans are those with terms longer than five years. Some of the most notable long-term loans are SBA loans with terms of up to 25 years. Long-term loans require top borrower qualifications and are slow to fund, but also offer the lowest interest rates. These Apalachicola Florida term loans almost always are issued by traditional lenders like banks and credit unions.

As you can see, although business term loans are often broken up into these categories, you'll want to keep in mind that they can also be differentiated by their issuer business loans, credit union loans, online loans, etc.

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First Union Lending LLC is a dually licensed Lender/Broker with its main offices located at 4900 Millenia Blvd First Floor Orlando, FL 32839. First Union Lending LLC and its ads are meant for continental United States, including Alaska and Hawaii small business owners. Business Loans offered by First Union Lending LLC have varying rates and terms that can range from 30 - 120 payments and all rates and terms are based on eligibility of the business and its owners. The actual terms are based on credit, business history, industry, amount and terms. As an example, a $5,000 loan paid over 5 years at 8% would have a total repayment of $6,082.92 over the life of the loan. We use the latest encryption to protect sensitive information transmitted online, as well as run our own secure server network to ensure your information is protected offline as well. California loans made pursuant to the California Financing Law, Division 9 (commencing with Section 22000) of the Finance Code. All such loans made through VBJ Consulting, LLC, a licensed finance lender/broker, California Financing Law License No. CFL#60DBO78163

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