If you’ve had experience with personal loans or mortgages, you’re likely familiar with how loans function. A loan is an initial lump sum of money provided by a lender.
The lender disburses the loan, and you repay it with interest at a predetermined rate. The interest rate may be fixed or variable and is generally lower compared to other financing options.
Term loans serve both personal and business needs. Many business owners opt for term loans to finance unexpected projects or to support long-term growth.
Term loans are essential for funding fixed assets and projects requiring substantial capital and time.
Term loans can range from one year to as long as 15 years, helping to alleviate cash flow challenges for businesses. These loans are secured, with assets typically used as collateral to ensure timely repayment. They are a favored financing option for many entities as they do not dilute ownership like equity or entail the complexities of debt financing or bonds.