A business term loan is a lump sum of capital that you pay back with regular repayments at a fixed interest rate with monthly, bi-weekly, or weekly payments.
The “term” in “term loan” comes from its set repayment term length, which can be up to 5 years. Generally, business owners use the proceeds of term loans to finance specific, one-off investments for their small businesses such as real estate purchases, business expansions, debt refinancing, and more.
