A long-term loan is a business financing option for established businesses that need a large amount of capital at a lower interest rate for growth.
These long-term loans typically have repayment terms of at least three to ten years, which can be especially appealing to business owners looking to make an investment in their business that will provide a return on investment over a long period of time.
For online long-term business loans, the approval process is convenient and simple, and we connect you with the right-sized capital to meet your business goals.
Long-term business loans allow borrowers to pursue large-scale growth plans while paying for the initiative over the course of the loan.
Whether you are looking to tackle the next phase of your business plan, open a new location, purchase new equipment, expand into new markets, grow your team, or launch a new product, long-term loans can help you reach your next phase of growth.
Longer term loans are best for planned business expansion and growth goals. Similar to buying a house or getting a college education, many business initiatives take time to gain a return on investment.
The lower monthly repayment amounts of long-term loans can give your business the margin it needs to maintain positive cash flow.
Long-term business loans allow you to meet your most important business goals with favorable repayment terms. Whether you want to open a new location, grow your team or launch a new product, these expansion loans can help make your most important business goals happen.
When you apply for a long-term business loan, you will receive the full loan amount upfront as a lump sum. You can use that capital to fund your business growth initiative and set your business up for long-term success. That long-term loan is then repaid over a relatively long time (compared to other business loan options) in smaller monthly payments.
Because long-term business loans are repaid over a long time, the interest rates are lower. However, you will need to carve out your monthly payment every month for at least a few years.
For that reason, it is best to run the numbers to ensure that your business investment will truly take your business to the next level. Short-term loans, like working capital loans, are better for more immediate needs or to cover seasonal fluctuations in business.
About Small Business Long-Term Loans Available Through Credibly
✔ Max loan size up to $250,000
✔ Anticipated term length 18 or 24 months
✔ Automatic payments weekly
Your eligibility for a long-term business loan depends on:
✔ Your credit score
✔ Your time in business
✔ Your cash flow and other operating expenses
✔ Your stake in the business
Your lender will want to see:
✔ Bank statements and other financial documents
✔ Government-issued identification documents
✔ Your business plan
Interest Rates and Fees
Your lender will supply a business loan agreement with information about:
✔ Interest rates: Your interest rate and the amortization of your loan will be available on your loan agreement.
✔ Fees: You may be required to pay a one-time origination fee or a monthly fee. This information will also be available on your loan agreement.
Long-Term Business Expansion Loan: Advantages and Disadvantages
Due to favorable interest rates and long repayment terms, long-term loans are a great option for financing expansion projects. However, short-term funding may be a better option for cash flow stabilization and growth initiatives with a shorter project timeline.