US Capital Group of America thrives on finding the best solutions for your businesses, both large and small. Our business term loans provide unmatched flexibility for business growth and management. We know every business is unique, which is why our underwriting process is designed to help you capitalize on the opportunities that make sense for your business.
What Is A Term Loan?
A term loan is a lump sum of capital borrowed from a lender and paid off at fixed monthly intervals over a set period of time and in our case, that’s between 2 – 5 years. Business owners often use a term loan’s proceeds to purchase fixed assets, such as equipment or a new building for its production process. This type of loan can be a great way to get the funds you need to successfully build or maintain your business until you are eligible for an SBA loan.
When Is A Business Term Loan The Right Financing For Your Business?
A Bank Term loan from lenders in the US Capital Group of America’s term loan network is a 2 – 5 year, fixed-rate loan with monthly payments. These loans are a great fit when you need funds quickly and want to lock in your interest rate. The same streamlined process we use for our alternative business loans is now used to process bank term loans in the US Capital Group of America marketplace. Proceeds from a Bank term loan can be used in a variety of ways to meet your business goals. Funds can be used for working capital, debt refinances, new equipment purchases, and more.
Information To Gather Before Applying
Cash Flow documents:
- 3 years of Business and 2 years of Personal Tax Returns
- Business Debt Schedule
- Interim Financials: 2 years Profit & Loss Statement, Balance Sheet
- 6 most recent business bank statements
Barriers To Fund
These are some items to watch out for that may lengthen the time to fund or render a business ineligible
- Declining revenue trends in borrowing business or affiliates
- Unfiled tax returns
- Criminal records
- Businesses or Guarantors that are mid-litigation
- Undisclosed debt / UCC liens
Frequently Asked Questions
Who Qualifies for a Business Term Loan?
Most business owners that have been operating a business for greater than 2 years have some type of term loan that can be offered. The longer time in business, the better the credit, 640 and higher and financial statements, the more business term loan products can be offered.
What does a term loan mean?
Business Term loans usually offer better rates, cost structure, and terms than other business funding products. SBA loans offer larger amounts than many other business funding options due to their long repayment duration.
Which bank is best for a business loan?
There’s no real size fits answer to this question, as every bank will have different options to choose from when it comes to term loans.
Are Business and Bank Term Loans Difficult to Obtain?
The short answer is yes and no. Long-term and SBA loans are difficult to obtain because of the risks of the long-term duration of repayment of the loan option. Short-term business loans are much easier to get approved for with lower credit standards and document requirements, but the cost will be more and obviously be shorter in duration to risk.
What will a Business Term Loan Cost You?
Bank term loans, SBA loans, and short-term loans have origination fees that range from 1% up to 3%. Application, Underwriting, or processing fees may also apply.
Can I qualify for Business Term Loan if I have bad credit?
The answer is Yes and No. You can get approved for short-term loans from our business loan marketplace of 100+ alternative lenders if you have credit problems. Bank term loans and SBA loans will not be an option if you have bad credit.
Can I get Business Term Loan if I am a startup business?
The short answer is no, most long-term loan products and short-term loan products with the exception of some Business Acquisition loans.