Business term loans
A structured term loan for established businesses that need capital faster than an SBA timeline allows. Typically funded in one to two weeks, and priced for that speed.
The pre-qualification form takes about a minute.
Who this loan is for
A business term loan is a speed product for established businesses. Loan amounts typically run from $50,000 to $350,000, repaid over three to five years.
Our lending partners fund most files in one to two weeks, often in under a week. That speed costs more than SBA financing. If your timeline allows 30 to 60 days, an SBA business loan will almost always cost less. If it doesn’t, this loan can close while an SBA file is still in underwriting.
A good fit if you have:
- At least three years in business. This is the main thing lenders weigh.
- A credit score of 675 or higher
- Consistent monthly revenue and a defined use for the money
- No need to pledge real estate. Property is neither collateral nor an eligible use of funds.
Probably not the right fit if:
- You’ve been in business under three years
- Your timeline allows 30 to 60 days. An SBA business loan will cost significantly less.
- You need more than $350,000. See business funding.
- You’re financing property. See conventional commercial loans.
Rates, terms and fees
| Loan amount | $50,000 to $350,000 |
| APR range | Typically 15% to 23% |
| Origination fee | 5% of the loan amount |
| Term | 3 to 5 years |
| Time to close | Typically 1 to 2 weeks, often under one week |
We publish these figures so you can price the decision before you spend time on an application. APR, or annual percentage rate, is the yearly cost of the loan. Your actual pricing depends on time in business, credit profile and debt service coverage. All terms are subject to credit approval and can change without notice.
Two documentation paths
How much paperwork you need depends on how much you’re borrowing.
$50,000 to $100,000: application only
The fastest path. No tax returns and no financial statements.
- Completed and signed application
- Four months of business bank statements
- Driver’s license, front and back
- Comparable credit evidence (explained below)
$100,000 to $350,000: full financial review
The same underwriting depth an SBA lender applies, on a much shorter timeline.
- Completed and signed application
- Four months of business bank statements
- Two years of tax returns, or audited financials with year to date
- Profit and loss statement from your last filed tax return to the present, dated within 90 days
- Balance sheet
- Business debt schedule
- Comparable credit evidence
If you’re near the $100,000 line without current financials, sizing the request just under it can mean funding this week instead of next month.
What lending partners look for
| Factor | Requirement | Weight |
|---|---|---|
| Time in business | 3 years minimum | Primary factor |
| Credit score | 675 minimum | Secondary |
| Debt service coverage | Above 1.2x | Secondary |
| Comparable credit | 50% or more | Required |
Time in business carries the most weight. A four-year-old business with a 690 score and clean coverage is a stronger file than a two-year-old business with a 750.
Debt service coverage compares the cash your business generates to its loan payments. At 1.2x, the business produces 20% more cash than it needs to pay its debts.
Comparable credit means you’ve already handled credit of a similar size. The largest credit obligation you’ve carried should be at least half your request. If you’re asking for $200,000 and your biggest note was $30,000, that gap has to close. Usually the fix is a smaller request, not a different lender.
The two most common reasons for a decline
Both are worth checking before you apply, because both are fixable.
- Overextended debt. Existing payments already use up the cash flow that would cover the new loan. Run your coverage ratio first. If it’s under 1.2x, a smaller request is far more likely to fund.
- Not enough comparable credit. There’s no track record of managing credit at the size you’re requesting.
Neither is usually a permanent no. Both respond to a smaller ask or a few months of preparation.
What businesses use it for
- Inventory purchases and seasonal inventory build
- Equipment
- Expansion projects
- Vendor deposits for contracted work
The common thread is a defined, revenue-producing use of funds with a deadline attached.
How it works
- Apply online. A short, 1-minute form tells us about your request and your business.
- Talk to your loan expert. A Standout loan expert is assigned to your file and guides you through the process.
- Choose your loan. Your loan expert brings you the best available options from our lending partners.
All rates, fees and requirements on this page are typical published figures. They are subject to credit approval and can change without notice.
Common questions
How fast can I get funded?
Typically one to two weeks, and often under a week on application-only files between $50,000 and $100,000. Larger requests need a full financial review but usually still close inside two weeks.
Do I need tax returns?
Not for requests from $50,000 to $100,000. Above $100,000, lending partners ask for two years of tax returns or audited financials.
What does a business term loan cost?
The published APR range is typically 15% to 23%, plus a 5% origination fee. On a $100,000 loan, that fee is $5,000. Where you land depends mostly on time in business, then credit and coverage.
How is this different from an SBA loan?
Speed and cost move in opposite directions. This typically closes in one to two weeks; an SBA business loan takes 15 to 60 days but starts at Prime + 2%.
Can I qualify with under three years in business?
Not for this program. With two years in business, an SBA business loan may still fit.
Is this a merchant cash advance?
No. It's a structured term loan with a fixed three-to-five-year repayment schedule. It isn't factoring, a revenue share or a daily-remittance product.
Other options to compare
All loan programsReady to take the next step?
Apply in about a minute. Your loan expert will guide you from there.