Business Term Loans
A business term loan gives you a lump sum of capital upfront with a fixed repayment schedule: predictable payments, clear timeline, no surprises. Whether you need funding for 3 months or 10 years, term loans are the most straightforward form of business financing. Rise connects businesses with term loans from $5,000 to $5,000,000, with daily, weekly, or monthly payment options. From covering a short-term cash flow gap to funding a major expansion, term loans offer the structure and certainty that other products can't match.
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What Is a Business Term Loan?
A business term loan is the most traditional form of commercial financing. You receive a fixed lump sum, agree to a repayment schedule (daily, weekly, or monthly), and pay back the principal plus interest over a set period, known as the "term." Once the loan is fully repaid, the obligation ends. There is no revolving balance and no ongoing commitment.
Term loans come in two varieties: short-term (3 to 18 months) and long-term (1 to 10+ years). Short-term business loans offer faster funding and easier qualification but higher total cost. Long-term business loans offer lower rates and larger amounts but stricter qualification and longer approval timelines.
The term loan structure makes financial planning straightforward. You know exactly what you owe, when it's due, and when the loan ends. This predictability makes term loans the preferred choice for businesses that want clear budgeting certainty. Use our business loan calculator to compare short vs long-term options.
Requirements to Qualify for a Business Term Loan
Personal FICO Score
550+ / 650+
Qualification thresholds vary by term length. Short-term products are more accessible; long-term loans require stronger credit.
Monthly Revenue
$10,000+
Lenders verify your ability to handle the payment schedule. Stronger revenue qualifies for larger loan amounts and better rates.
Time in Business
6+ months / 2+ years
Short-term lenders accept newer businesses. Long-term lenders need a longer track record to justify the extended commitment.
Bank Account
Business account required
Used to verify revenue patterns and manage automated repayments. Personal accounts are not accepted.
Not sure which term length is right? Rise evaluates your needs and matches you with the best option. Businesses across all industries are welcome, including manufacturing companies investing in capacity and restaurants funding renovations.
How Business Term Loans Work
Receive a Lump Sum
The full loan amount is deposited into your business bank account upfront. Amounts range from $5,000 to $5,000,000 depending on your revenue, credit, and the loan term.
Fixed Repayment Schedule
Payments are automatic and predictable, deducted daily, weekly, or monthly from your bank account. The amount is fixed from day one. No variable rates, no compounding unknowns.
Choose Your Term Length
Short-term (3 to 18 months) for immediate needs with faster approval. Long-term (1 to 10 years) for major investments with lower monthly payments. The right term aligns the repayment timeline with the purpose of the capital.
Loan Ends When Repaid
Once the total repayment amount is reached, the loan is complete. No revolving balance, no ongoing obligations, no annual fees. The relationship is defined and finite.
See If You Qualify for a Business Term Loan
Checking your eligibility won't impact your credit score.
Pros & Cons of Business Term Loans
Pros
Predictable Fixed Payments
Know exactly what you owe and when. Budget with certainty, with no variable rates and no fluctuating payment amounts.
Flexible Term Lengths
Choose 3 months to 10+ years depending on your needs. Match the repayment timeline to the purpose of the capital.
Use Funds for Any Purpose
Working capital, equipment, expansion, payroll, inventory, marketing, and more. There are no restrictions on how you deploy the funds.
Builds Business Credit
Consistent on-time payments strengthen your credit profile for future financing at better rates and higher amounts.
Clear Total Cost
The full repayment amount is disclosed upfront. No hidden fees or compounding surprises.
Cons
Fixed Payments Regardless of Revenue
Unlike a merchant cash advance or revenue-based financing, term loan payments stay the same even during slow periods.
Qualification Varies by Term
Long-term loans require stronger financials than short-term products. Not every business qualifies for the term length it prefers.
No Revolving Access
Once the loan is disbursed, you cannot draw additional funds. If you need ongoing access to capital, a business line of credit is more flexible.
Alternatives to a Business Term Loan
- Revolving access to capital: draw funds as needed and repay to restore your limit
- Only pay interest on the amount you actually use, not the full credit limit
- Ideal for ongoing cash flow management, seasonal fluctuations, and recurring expenses
- Credit replenishes automatically as you repay, with no need to reapply
- Lower cost for businesses that need frequent, smaller draws rather than a lump sum
- Lump sum advance repaid through a percentage of daily credit card sales
- No fixed payment schedule; repayment flexes automatically with your revenue
- Fastest funding option, with same-day approval and 24-hour deposits available
- Minimal credit requirements and no collateral needed
- Best for businesses with high card volume that need capital immediately
- Government-backed loans with the lowest interest rates available
- Up to $5,000,000 with terms as long as 25 years for real estate
- Multiple programs (7(a), 504, Microloans) for different business needs
- Requires strong credit (680+), 2+ years in business, and extensive documentation
- Best for established businesses willing to wait for the lowest cost of capital
Frequently Asked Questions About
Business Term Loans
A business term loan is a lump sum of capital you receive upfront and repay over a fixed period with regular payments: daily, weekly, or monthly. The repayment schedule, interest rate, and total cost are agreed upon before funding, giving you complete predictability. Once the loan is fully repaid, the obligation ends with no ongoing commitment.
Trusted by Small Businesses Across the USA
Fast Approval
As Little As 2 Hours
Funding Available
$5K to $5M
Businesses Funded
Across All 50 States
Term Loans in Your State
Available across all 50 states and Washington, D.C. Pick your state to see local programs, qualification specifics, and state-tailored FAQs.
- Alabama
- Alaska
- Arizona
- Arkansas
- California
- Colorado
- Connecticut
- Delaware
- District of Columbia
- Florida
- Georgia
- Hawaii
- Idaho
- Illinois
- Indiana
- Iowa
- Kansas
- Kentucky
- Louisiana
- Maine
- Maryland
- Massachusetts
- Michigan
- Minnesota
- Mississippi
- Missouri
- Montana
- Nebraska
- Nevada
- New Hampshire
- New Jersey
- New Mexico
- New York
- North Carolina
- North Dakota
- Ohio
- Oklahoma
- Oregon
- Pennsylvania
- Rhode Island
- South Carolina
- South Dakota
- Tennessee
- Texas
- Utah
- Vermont
- Virginia
- Washington
- West Virginia
- Wisconsin
- Wyoming
Get a Business Term Loan Today
Whether you need short-term capital to bridge a gap or long-term financing for a major investment, Rise connects you with the right term loan. Predictable payments, clear terms, and funding as fast as 24 hours.