Long Term Loans for Small Businesses?
As opposed to short term loans, longer term loans generally have repayment periods that can theoretically extend anywhere from 5 to 25 years. This, of course, will be based on a variety of factors, to include the lending company with which you work. The question we often get concerns whether or not a small business can actually get a long term loan. The answer is yes! Getting a conventional bank loan might not be the easiest; especially given today’s stringent standards, many small businesses go through a lengthy and arduous process only to receive a rejection in the end. Therefore the loan options listed below might be a better fit for your small business…
When a lender partners with the SBA in essence what this means is that the SBA is guaranteeing a percentage of that loan. And so, if for some reason the company does default, at least the lender isn’t losing 100% of the money borrowed. With SBA term loans, businesses often will have in that 5 to 25 year range as far as the payback duration. If you have been denied for a traditional bank loan, then you are eligible to apply for an SBA loan.
Beyond SBA loans, there are also term loans available through both banks as well as other types of lenders. The repayment on these is generally a little shorter, ranging from 1 to 5 years. The amount borrowed in some cases can be as high as 500k, so if you do require more cash than say a short term loan would accommodate, this may be one to look into.