Small Business Term Loan
A predictable lump sum repaid in fixed monthly installments.
See my funding optionsAmount
$10,000 – $1,000,000
Speed
Funded in 1–3 business days
Best for
Established small businesses planning a specific investment - expansion, renovation, hiring, or a large purchase.
Overview
A small business term loan gives you a single lump sum that you pay back over a fixed period - typically 12 to 60 months - in predictable monthly installments. It is the right tool when you know exactly how much you need and want a clear payoff schedule.
How it works
- 1Start the online application — any credit check is disclosed before you authorize it.
- 2Upload 3 months of business bank statements and basic business info.
- 3Compare offers showing principal, APR, monthly payment, and term length.
- 4Sign electronically and receive funds in your bank account.
- 5Repay in fixed monthly installments - no surprises.
Pros
- Predictable fixed monthly payment
- Often the lowest cost of capital after a bank loan
- Longer repayment terms reduce monthly burden
- Builds business credit when reported
Things to consider
- Slower funding than cash flow financing
- Stricter credit and revenue requirements
Who qualifies
- 12+ months in business (some lenders accept 6+ months)
- $15,000+ in average monthly revenue
- U.S. business bank account
- Personal credit score of 600+ typically preferred
Deep dive: Small Business Term Loan
What is a small business term loan?
A small business term loan is the most traditional form of business financing: a one-time lump sum that you repay over a fixed period in equal monthly installments. The amount, term, and interest rate are locked in at closing, so you know exactly what you owe and when. Term loans are the right tool when you have a defined use of funds with a measurable return - expansion, equipment, hiring, or a major renovation - and you want the lowest cost of capital outside of an SBA or bank facility.
How underwriting works
Lendpilot's term loan partners look at three things: your time in business, your monthly revenue trend over the last 3–12 months, and your personal and business credit. Most approvals require 12+ months in business, $15K+ in average monthly deposits, and a personal FICO of 600 or higher. The strongest pricing goes to businesses with 2+ years operating, clean bank statements, and FICO 680+.
Cost: real APR, not factor rate
Unlike cash flow financing, term loans are priced with a true annualized interest rate. A $100,000, 36-month term loan at 18% APR carries a fixed monthly payment of roughly $3,615 and total interest of about $30,000 over the life of the loan. Most of our term loan partners report payments to business credit bureaus, which helps you build a credit profile that unlocks better pricing on your next round of capital.
Term loan vs. line of credit vs. cash flow
Choose a term loan when you know the exact amount and have a clear payoff plan. Choose a line of credit when you want capital available on standby for unpredictable needs. Choose cash flow financing when speed matters more than rate, or when your credit profile doesn't yet qualify for traditional term financing.
Common use cases
Expansion & new locations
Fund a second location, a build-out, or a major renovation with predictable monthly payments.
Equipment & vehicles
Finance a large piece of equipment over its useful life rather than draining working capital.
Hiring & payroll ramp
Bring on a sales team or new operators ahead of revenue with a longer runway.
Debt consolidation
Refinance higher-cost short-term debt into one fixed monthly payment.
Example pricing
Illustrative only - your actual offer depends on your profile and is shown after pre-qualification.
- Loan amount
- $100,000
- APR
- 18%
- Term
- 36 months
- Monthly payment
- ~$3,615
- Total interest
- ~$30,000
What you'll need
- Last 3–6 months of business bank statements
- Most recent business tax return
- Government-issued ID for each 20%+ owner
- Voided business check
- Debt schedule (if you have existing business loans)
Related products
Business Line of Credit
Revolving credit you can draw from anytime - only pay for what you use.
Learn more →Cash Flow Financing
Flexible working capital repaid as a small percentage of your daily sales or revenue.
Learn more →Real Estate Loans
HELOCs, cash-out refinances, and acquisition loans for residential and commercial property.
Learn more →