A business term loan is a lump sum of money you borrow from a lender, then pay back at fixed intervals — with interest — over a set period of time.

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Depending on the lender, you'll pay off the loan on a weekly, bi-weekly, or monthly basis.  Repayment periods can last from a few months up to 10 years or more.

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Interest Rates also vary by lender, but they can be either fixed or variable. Fixed Rates stay the same, while variable rates change depending on the state of the market.

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Business term loans are great vehicles to invest in big purchases and long-term business growth.  With long repayment periods and typically lower interest rates than credit cards, term loans give you ample time to generate a return on your investment before you have to pay back your loan.

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Longer term loans are best for business expansion and growth goals. Similar to buying a house, many business initiatives take time to gain a return on investment. The lower monthly repayment amounts of long-term loans can give your business the margin it needs to maintain positive cash flow. This loan type offers fast funding, typically funding within a week.