Business Term Loans for Long-Term Growth
Secure predictable capital with fixed payments and flexible terms.
What is a Business Term Loan?
A Business Term Loan is a traditional form of business financing where a company borrows a specific lump sum and repays it over a fixed period—usually with a fixed interest rate and regular (monthly or weekly) payments. It’s ideal for businesses that need to make a large one-time investment, manage cash flow, or consolidate debt.
Unlike short-term loans or revolving credit lines, a term loan provides stability and predictability, making it easier for businesses to plan their financial future.
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How Does a Business Term Loan Work?
The structure is simple:
- You borrow a fixed amount—typically $25,000 to $1,000,000 or more
- The loan comes with a fixed or variable interest rate
- You repay the loan in monthly or weekly installments over a set period (usually 1 to 5 years)
- Once the loan is paid off, your obligation ends
Loan terms, rates, and required documentation will vary based on your credit profile, time in business, annual revenue, and whether the loan is secured or unsecured.
What Can a Business Term Loan Be Used For?
Term loans offer the flexibility to fund nearly any strategic or operational business goal. Common use cases include:
✔ Expanding Operations or Opening a New Location
Whether you’re franchising, entering a new market, or building a second site, a term loan gives you the capital to grow with confidence.
✔ Hiring Employees or Scaling Teams
Invest in your workforce by hiring, training, or expanding departments. Term loans allow you to front-load this cost and repay gradually as ROI builds.
✔ Purchasing Equipment or Vehicles
While equipment financing targets specific purchases, some businesses prefer a lump sum term loan to cover machinery, IT systems, or fleet upgrades in a single go.
✔ Refinancing or Consolidating Business Debt
If you’re managing multiple high-interest debts, a term loan can help consolidate them into one manageable payment with potentially better terms.
✔ Launching a New Product or Service Line
R&D, marketing, prototyping, or inventory investments can be covered with a predictable repayment schedule that aligns with launch cycles.
Why Choose SQR Financial for Your Term Loan?
At SQR Financial, we’re committed to simplifying business lending. We understand the unique financial pressures small and midsize businesses face—and we tailor funding solutions accordingly.
- Fast Pre-Approvals (within 24–48 hours)
- Loan Amounts from $25,000 to $1,000,000+
- Fixed and Predictable Payments
- Flexible Terms up to 5 Years
- No Hidden Fees or Prepayment Penalties
- Expert Support from Application to Payoff
Whether you’re building something new or stabilizing your current operations, our team will help you structure a loan that supports long-term success.
FAQs: Business Term Loans with SQR Financial
What’s the typical repayment term for a business term loan?
Repayment terms typically range from 1 to 5 years, though some lenders may offer up to 10 years for highly qualified borrowers or larger amounts. The term you’re offered will depend on your financials and intended use of funds.
How much can I borrow with a term loan?
Loan amounts usually range from $25,000 to $1,000,000, though high-revenue businesses may qualify for more. Your loan size depends on revenue, credit, profitability, and debt service coverage ratio.
Is the interest rate fixed or variable?
It can be either. Many term loans offer fixed rates for payment predictability. Others may include variable rates tied to benchmarks like the prime rate. We’ll help you understand which structure fits your business best.
Can I repay early without penalties?
Yes. At SQR Financial, many of our lending partners offer zero prepayment penalties, allowing you to save on interest by repaying early.
Do I need to provide collateral for a term loan?
Some term loans are secured (backed by business assets), while others are unsecured and based solely on creditworthiness. Secured loans often come with better rates and higher limits. We’ll help you navigate both options.
How fast can I get funding?
Funding usually occurs within 2 to 5 business days after approval. If your documentation is ready and you’re responsive, it can be even faster.
What are the interest rates for business term loans?
Rates vary depending on credit score, revenue, time in business, and lender, but they typically range from 7% to 25% APR. Businesses with strong financials get better rates.
Will applying impact my credit score?
Our prequalification process uses a soft credit pull. A hard inquiry only happens when you formally proceed with a selected lender. You’ll be notified before that point.
Can I use the loan for multiple purposes?
Yes. A term loan is a lump sum that you can apply across various business expenses—including equipment, inventory, payroll, marketing, or debt consolidation.
What if I have existing business debt?
You can still apply. In fact, many businesses use term loans to refinance existing debt at better terms. Our advisors will help assess your current obligations and structure the loan accordingly.