Long term business loans in Pennsylvania

Long term business loans in Pennsylvania

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Long-term loans in Pennsylvania are the optimal loan choice for business owners looking to make an investment that will provide a return on capital over a prolonged period. It is often used to support long-term initiatives such as acquisitions, opening a secondary facility, financing internal events, and more.

The “term” in “term loan” comes from its set repayment term length. Which can range from a few months to several years depending on the type of loan.

So let's dive a bit deeper into how a long-term business loan in Pennsylvania can help your small and growing business.

What is a Pennsylvania Long-Term Business Loan?

What is a Pennsylvania Long-Term Business Loan?

A long-term loan is a type of term business loan that provides borrowers in Pennsylvania with a lump sum of funds that is then repaid at regular intervals of 5 to 25 years. This type of loan is designed for business owners with a proven track record for success and financial security.

This is the better financing option for established businesses in Pennsylvania that need a large amount of capital at a lower interest rate. A long-term business loan has either a fixed floating interest rate and monthly or bi-monthly payments deducted from a business bank account.

The term length you qualify for can depend on the following factors:

Benefits of Long Term Business Loans

The term length you qualify for can depend on the following factors:

  • Requested loan amount
  • Finances (credit score, annual revenue, and other details)
  • Longevity of your business
  • Purpose of the loan

How can you use a business term loan in Pennsylvania?

Business term loans can be issued by banks, credit unions, and certified online lenders like First Union. While banks and credit unions will offer the most ideal rates and terms, they require the top qualifications and are slower to fund. Certified online lenders will offer greater flexibility and faster funding time.

In addition to a predictable payment schedule, one of the benefits of a long-term business loan is its ability to be used for a variety of business financing services. Small and growing Pennsylvania based businesses can utilize these loans to enable company growth and generate more revenue in the long term.

Medium and long-term loans are often used for:

  • Business expansion
  • Business acquisition
  • Purchasing new equipment
  • Refinancing current debt
  • Hiring staff
  • Purchasing real estate
  • Funding general long-term investments

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

If you're a growing business in need of a lump sum of revenue for your business initiatives, First Union is here to help. You can apply by submitting your basic information in the form below. Our Funding Specialists will analyze your qualifications and will reach out to walk you through the next steps.

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Only U.S.-Based Businesses are Eligible.

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During the application process, most lenders will ask for the following general information:

  • Basic personal and business information, including a driver's 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)

Lenders will typically require borrowers to have a strong credit history and documentation to prove the Pennsylvania based business's creditworthiness.

Moreover, many lenders will require that you sign a personal guarantee for your 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.

If you have any questions in regards to how to proceed with a long-term loan in Pennsylvania, feel free to give us a call: 863-825-5626

Advantages of Long-Term Business Loans in Pennsylvania

Advantages of Long-Term Business Loans in Pennsylvania

he benefits of long-term financing vary in their alignment for business needs. Long-term loans offer a longer maturity, at a fixed rate throughout the loan. It enables a company in Pennsylvania to align its capital structure with its long-term strategic goals, providing businesses with more time to earn a high-value return on investment.

These types of loans also offer better rates than short-term loans for well-qualified borrowers. Please note, interest rates may also be impacted by the borrower's credit history and other determining factors. They also offer lower fees, which can benefit businesses when they receive their funds.

Types of Long-Term Business Loans in Pennsylvania

There are several different options offered to assist businesses as they scale and grow. Below are common types of long-term loans or financing options made for small and growing businesses:

SBA Loans: Partly guaranteed by the U.S. Small Business Administration (SBA), SBA loans have tighter lending standards and requirements. They offer extremely flexible rates and terms, which make them the better choice to finance your business. The SBA 7(a) and SBA 504 loan programs offer long-term financing for qualified small businesses in Pennsylvania.

Business Line of Credit: Lines of credit can be used to help manage cash flow and other working capital expenses. Repayment terms for lines of credit differ from other traditional loans because borrowers are not charged for interest on the whole awarded amount, they only pay on what they spend - similar to a credit card.

Equipment Financing: For well-established and growing businesses that want to invest in improved equipment, this can be a viable option. This can include machinery, vehicles, medical devices, and office equipment for your Pennsylvania based business. Loan terms for equipment can range from several months to 10 or more years, dependent on the qualifications.

Commercial Real Estate Loans: This type of loan is made solely for borrowers in Pennsylvania looking to purchase a building or other property to be used for business purposes. This includes new office space, a retail shop, factory, or warehouse. The approved funds and terms will depend on the loan-to-value ratio, loan amount, borrower qualifications, and general lender requirements. This type of long-term loan allows business owners to make a large real estate purchase without causing a financial strain of paying for the property all at once.

Other Types of Business Term Loans in Pennsylvania

The phrase “business term loan” can 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, the most common way to differentiate long-term business loans from other term loans is by the length of their repayment period.

  • Short-term loans: Short-term online lenders usually issue these loans with repayment periods of one year or less (sometimes up to 18 months). Online lenders usually issue these loans as they 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.

Choose First Union Lending As Your Premier Lender

At First Union Lending, we have an unwavering belief that small and medium-sized Pennsylvania based businesses deserve the right to access the capital they need to succeed.

Our goal is to build long-term, lasting relationships by providing business owners with what they need when they need it. We pride ourselves on being educated, knowledgeable, and caring when it comes to how we conduct business. We have voluntarily acquired much of the same licensing required by traditional banks to cement our fiduciary responsibility to our Pennsylvania based clients and our work culture.

We are here to consult, help you save, and guide you and your business to success.

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