If you operate a small business you are most likely starting to see budget tightening. It may be the best time to add a term loan for business growth. Add some great financing to your cash flow management strategy, A term loan may be perfect for your startegy.
So what is a term loan? Securing a term loan for business growth is a smart move.
A term loan provides business borrowers with lump sum of cash upfront in exchange for borrowing terms. The loan terms are much shorter than a SBA loan term, but longer than other forms of quick cash loans.
Term loans are perfect for established small businesses with sound financial statements. In exchange for cash, the borrower agrees to a repayment schedule with a fixed or floating interest rate.
Comparing Term Loans with SBA Loan Programs
Some of the features of a term loan compared to an SBA loan are:
Minimum documentation required, but stricter parameters for cash flow and underwriting to qualify.
Term loan have more leniency on Use of Proceeds. Proceeds can be used for remodeling, construction, financing taxes, partner buyouts, and business acquisitions.
Term loans typically have higher monthly payments than Small Business Administration loan programs.