Structured capital with predictable payments.
Sometimes the best funding is the boring kind — fixed amount, fixed payments, fixed payoff date. Term loans give you a lump sum of capital and a straightforward repayment schedule. Perfect for expansion, acquisitions, marketing campaigns, or any planned investment where you want predictability.
- ✓ Fixed loan amounts from $10,000 to $1 million
- ✓ Terms from 3 to 60 months
- ✓ Fixed monthly payments — no surprises
- ✓ Funded in 24 to 72 hours
Term loans for planned business investments
How business term loans work.
A term loan is exactly what it sounds like: you borrow a fixed amount of money and repay it over a set term, typically with fixed monthly payments. The interest rate is set at origination. The total cost is clear before you sign. Nothing changes based on your revenue, sales cycles, or business performance — you owe what you owe, when you owe it.
Term loans work best for businesses making planned, defined investments — situations where you know the amount you need, when you'll deploy it, and when you'll pay it off. They're the closest alternative lending product to a traditional bank loan, with faster approval and more flexible qualification.
Compared to MCAs, term loans typically cost less over time but require stronger business fundamentals to qualify. Compared to equipment financing, term loans aren't tied to a specific asset purchase — the capital can be used for anything.
- ✓ Fixed loan amount, fixed rate, fixed payment
- ✓ Terms from 3 months (short) to 60 months (long)
- ✓ Interest rate replaces MCA-style factor rate
- ✓ Use funds for any legitimate business purpose
What businesses actually use term loans for.
Term loans are the flexible workhorse of business funding. Because there are no restrictions on how you use the capital, they fit a wide range of business needs. Here are the situations we see most often.
Business Expansion & Growth
Opening a second location, launching a new product line, entering a new market, or scaling operations. Term loans provide the structured capital that growth planning requires.
Marketing & Advertising
Funding major marketing campaigns, brand launches, or paid acquisition strategies where you need capital deployed upfront but want to pay it back as results roll in.
Hiring & Payroll
Investing in your team — hiring key roles, funding payroll during growth phases, or bridging cash flow gaps caused by rapid team expansion.
Business Acquisition
Buying a competitor, acquiring a complementary business, or purchasing a franchise. Term loans provide the lump-sum capital these transactions require.
Debt Consolidation
Refinancing multiple higher-cost debts (including existing MCAs) into a single term loan with predictable payments and a defined payoff date.
Renovation & Buildouts
Renovating a storefront, retrofitting a warehouse, expanding a restaurant kitchen, or building out office space. Structured capital for structured projects.
When a term loan beats an MCA.
Both products have their place, but they're built for different situations. Term loans generally cost less over the full repayment period, but they require stronger business fundamentals to qualify — better credit, longer operating history, and more consistent revenue.
If you qualify for a term loan and can wait an extra day or two for funding, it's usually the better financial choice. If you need capital in 24 hours or your business doesn't qualify for a term loan, an MCA is often the right tool.
- ✓ Fixed monthly payments instead of daily/weekly holdbacks
- ✓ Interest rate instead of factor rate — often lower total cost
- ✓ Longer terms — up to 60 months vs. 6-18 for MCA
- ✓ Better for planned investments with predictable returns
Term loans require stronger fundamentals.
Because term loans don't have the built-in flexibility of an MCA or the collateral of equipment financing, qualification is slightly more selective. If your business meets these thresholds, you're likely a good candidate.
From application to funded — typically 24 to 72 hours.
Term loans require slightly more underwriting than MCA because we're evaluating longer-term repayment capacity. Here's what to expect.
Apply and share business details
Complete our short online application. We'll need basic business info, 6 months of business bank statements, and details about how you'll use the funds. Term loans have slightly more documentation than MCA due to the longer commitment.
Start now →
Underwriting matches you to a structure
Our team reviews your revenue, credit, and use case to structure the right term loan. Most decisions come within 24 to 48 hours. We'll present offers with the loan amount, interest rate, term length, and monthly payment — all disclosed in writing.
See our full process →
Get funded to your business account
Sign the loan agreement and we wire directly to your business bank account. Most term loans fund within 24 to 48 hours after signing. Fixed monthly payments begin the following month.
Apply now →Common questions.
Straight answers about business term loans. For our complete FAQ, see our full FAQ page.
See our full FAQ →How is a term loan different from an MCA?
How much can I borrow with a term loan?
What are the interest rates?
How long are the terms?
Do I need collateral?
Can I use a term loan to pay off existing MCA debt?
Is there a prepayment penalty?
Will a term loan affect my credit?
Term loans aren't the only option.
If a term loan isn't the right fit, one of our other business funding products might be. Different products serve different situations.
Merchant Cash Advance
Fast, revenue-based capital paid back as a percentage of daily receipts.
Learn more →Equipment Financing
Financing for machinery, vehicles, and business equipment up to $5M.
Learn more →Business Line of Credit
Flexible credit you can draw from as needed. Pay interest only on use.
Learn more →Structured capital for
structured plans.
Apply online in 3 minutes, or call a business funding specialist directly. Same-day decisions on most term loan applications. No cost to apply, no obligation.
Same-day decisions · No upfront fees · Habla Español