These loans are guaranteed by the Small Business Administration because of this they offer some of the lowest rates on the market as well as long repayment terms and the ability to borrow up to $5 million. Repayment ranges from 7- 25 years based upon how you plan to use the money. SBA loans are best for strong credit borrowers who have been operating for 2 years and are willing to work on the long application process to expand their business or refinance debt.
Term loan is a common form of long term business funding. You get a lump some of cash upfront to invest in your business and repay with interest over a predetermined time period. Best for businesses looking to expand that have good credit and strong business revenue.
Pros:
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Lowest rates on the market
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Borrow as much as $5 million
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Longer repayment terms 7-25 years
Cons:
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Long application process
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More qualifications required
- May require collateral
Best for:
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Expanding businesses or refinancing debt
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Business with good credit willing to wait for funding
