If you bring us a contract with a better offer, we guarantee to either beat that rate or pay you $500.

Long Term Business Loans: What Are They, And Why Do I Need One?

Long Term Business Loans: Why Do I Need This Type of Loan?


Long Term Business Loans: What Are They, And Why Do I Need One?Most small businesses start with little money but can scale quickly. Then they hit a wall. Their growth slows down. They may have reached a tipping point where the market no longer supports continued growth or where the strength of their competition has become intolerable. The result may lead you to ask about long term business loans and if you need this type of loan. 

Whatever the reason, they run out of cash before scaling.

They need capital to expand, hire employees, buy equipment, develop new products, and build an online presence.

In many cases, they can’t raise money through traditional channels. Banks won’t lend to companies without a track record, and venture capitalists won’t invest unless they see a clear plan for explosive future growth.

 And angel investors require collateral, which most startups and newer companies don’t have.

For entrepreneurs, finding financing can be difficult. But it doesn’t have to be.

You can fund your company without selling equity with a long-term business loan. 

You can borrow against your existing assets, such as inventory and accounts receivable. 

And you can pay interest rates lower than bank loans.

This funding option means you can focus less on financing and developing your company.

Here’s the process of getting a long term business loan:

1) You apply for a loan.

2) You provide financial information.

3) The lender reviews your application

4) You sign a contract agreeing to repay the loan.

5) The lender approves your request.

6) You receive funds from your loan.

7) You repay the loan.

8) You continue working until the loan is paid off.

9) You repay the loan plus interest.

10) Repeat steps 1 – 9 as needed.

The process sounds simple, but there are several essential points to consider.

First, you won’t find lenders specializing in long-term financing or “long term” business loans. Instead, you’ll find banks and alternative lenders that offer a wide variety of lending services. A longer-term business loan frequently means higher fees and longer repayment terms.

Second, your application will likely involve providing extensive documentation. For example, you might have to show proof of revenue and expenses, and you might have to provide copies of tax returns, balance sheets, and profit/loss statements.

Third, your lender will probably ask you to put up collateral. Collateral is something you own that secures a loan. Typically, collateral includes items like cars, houses, boats, and jewelry.

Fourth, you may have to wait for the approval. Lenders usually don’t make decisions overnight and typically ask for at least three months’ worth of financial data before they agree to extend you a business line of credit.

Finally, once approved, you’ll have to decide whether you want to use the loan to purchase inventory or pay bills. When you have a line of credit, you can borrow money when you need it.

So, choosing this option, you’ll have to budget carefully. You’ll also have to monitor your spending since you won’t be able to withdraw funds until the loan is repaid.

Long term business loans are an ideal solution. Unlike venture capitalists, lenders understand that newer companies rarely produce profits immediately, so they’re willing to accept a slower return on investment.

Lenders also appreciate that newer companies tend to have lower debt loads, and most young companies don’t have significant amounts of inventory or other assets to settle their debts. 

In addition, most newer companies don’t have large salaries to pay off their debts. Therefore, financial institutions that are so inclined to work with startups favor providing loans to new businesses over those already in operation.

Once you’ve decided to pursue a long term business loan (or any type of loan), here are some tips to help you succeed:

  • Choose a reputable lender.
  • Take the time to understand the terms of the loan agreement.
  • Be prepared to provide detailed financial information.
  • Keep good records.
  • Pay your loan payments promptly.
  • Don’t overextend yourself.
  • Stay organized.
  • Budget wisely.
  • Have confidence in your business idea.

If you follow these instructions, you’ll boost your chances of acquiring the finance you need.

Remember, you’re not looking for someone to hand you money. You want to find a lending partner who can meet your unique requirements and support you on your path to success.

Your success depends on your willingness to look for alternatives.

Long Term Business Loan Basics


A long-term loan is an unsecured debt obligation between two parties and is usually available for companies operating for several years. 

Different types of secured and unsecured loans are available to businesses. In addition, there are short-term loans available for unexpected costs.

Term loans are the most prevalent option for business financing. There is often a minimum duration of 3 – 6 months for a term loan. However, it could be as long as 3 years. Because these loans guarantee a regular payment, the interest rate is typically greater than other loans.

Another popular type of business loan is a revolving line of credit. This loan allows a borrower to draw funds against their account whenever needed. 

Revolving lines of credit tend to be cheaper than term loans because they allow borrowers to access funds without committing to a fixed repayment schedule.

Borrowers often ask, “how long should I intend to fund my startup?”

My answer is simple: until you run out of money.

Tips for Securing a Long-Term Business Loan

If you are a small business owner, you know it is not easy to get a loan for your business: high-interest rates and other terms and conditions are attached to the loans. Avoiding these pitfalls is much easier if you obtain financing from a non-traditional or alternative lender.

You won’t be able to get a loan from a bank if your credit is less than perfect or if you don’t have any credit at all. You’ll need to look for alternative methods and lenders if this happens.

Owners who cannot offer any assets or collateral in exchange for a loan would benefit significantly from this option. You need to show them proof of revenue, and they will give you the money without asking for anything in return.

Those who don’t have valuables or property to put up for security are the perfect candidates for this form of a loan. This funding is advantageous since you can use it for any business goal, including expansion and new product development. However, before applying, consider some of the tips below. If you’re looking for a long-term loan for your company, heed the following advice:

  1. Know what you need

Before you go out looking for a long term loan, you must be clear about what you need. Long-term loans come in various forms today; some are secured by real estate, while others require only personal guarantees. Finding out what helps you the most is recommended.

Find an experienced lender.

When you decide to get a long term business loan, you need to find someone who knows what they are doing. A reputable lender will help you understand the process and guide you throughout the application process. They will also ensure that you know everything that goes into the loan agreement.

Choose the right company.

When looking for a long term business loan provider, you must do your research first. Make sure that the company has experience working with small businesses. Also, check their reputation online. Do not forget to ask friends and family members for recommendations.

Apply early

You need to apply for long term business loans as soon as possible, and most lenders will not approve applications after 30 days. You might miss the opportunity altogether if you wait until the last minute.

Be prepared

Make sure you prepare when applying for a long-term loan. Include all the information that you think is relevant. You must provide detailed financial statements, tax returns, and other documents proving your income.

Pay attention to details.

When submitting a loan application, make sure you give careful consideration to every single element. When you sign the contract, make sure that you read through it carefully. If you don’t understand something, contact the lender immediately.

Keep track of your payments.

Once you receive the loan, you need to make regular monthly payments. You must follow up with your lender regularly, so you don’t fall behind on your payments.

Avoid scams

Many scammers out there are trying to take advantage of people like you. So, always be careful when dealing with companies that offer loans. Never send your personal information over email or social media sites. Instead, call the company directly at its phone number.

Understand your rights

If you feel that the loan agreement terms are unfair, you should talk to your lender. The law protects borrowers against unfair lending practices. So, if you think that the terms are too harsh, you can file a complaint with your state’s consumer protection agency.

Don’t hesitate to ask questions.

Asking questions is very important, and you should never be afraid to ask if you have any doubts about anything. Your lender may even offer free consultations where they will explain things in more detail.

Get professional advice

Finally, it would be best to consider getting professional advice from a lawyer or accountant before applying for a loan. This way, you will know that you made the right decision.


How Do You Know Your Company is Right for a Long Term Loan?


Quick Answer


Long Term Business Loan








To determine whether or not a long-term loan is the best option for a business, it’s essential to consider the following factors:

  • The amount of money needed.
  • The period over which the debt must be repaid.
  • The interest rate.

Any business that can use a long-term loan can use it for any business purpose. However, it may be more appropriate for specific industries than others.

A long-term loan is a form of financing where a business owner takes out a loan with a fixed payment schedule over several years. Typically, this loan is when a business needs capital to purchase equipment, build a facility, or fund other significant projects.

When looking for a long-term business loan, the most common options include the following:

  • Fixed Rate – This type of loan has a set interest rate throughout the life of the loan.
  • Adjustable Rate – This adjustable-rate loan allows borrowers to choose their interest rate based on market conditions.
  • Balloon Payment – With a balloon payment, the entire balance becomes due at the end of the loan term.
  • Amortization Schedule – The amortization schedule shows the total amount paid back in installments over the life of the loan, including principal and interest.
  • Interest Only – This type of loan only pays the interest during the life of the loan and does not require any principal payments until the final installment.
  • Line of Credit – This line of credit allows a borrower to draw funds as needed.


How Much Money Do I Need for My Business?


The first step is determining the type of business you want to run, and you should also consider what you want to do with the money you raise. Once you know what you want, you can start researching different ways to finance your business. There are a plethora of online websites to help you locate suitable finance for your company.

The next step is determining the capital investment required to launch your company. Remember that you’ll need more than one source of funding because you may need to pay off existing debt, buy inventory, hire employees, etc.

 After establishing your financial needs, the next step is to choose the most appropriate type of company loan.

What sort of business you’re operating will determine this. Some companies require large amounts of money, while others require very little. Here are some examples of how much money you might need for various types of businesses:

  • Small Business Loan – $10k-$50k
  • Medium Business – $50k-$250k
  • Large Business – $250k+

Getting A Business Loan for Your Business


When considering opening a new business, you may wonder where to turn for financing. Several options are available, including bank loans, private investors, and government grants. Any decision you make will have both positives and negatives; pros and cons consequences.


What Type of Business Should I Be Running?


If you’re just starting, you’ll probably need a small amount of money. However, once you’ve established yourself, you’ll likely need significant sums to grow your company. 

You should consult with someone who has been in your shoes if you are new to business management. The pro can help you decide what type of business will work best for you and provide advice on ensuring that you stay within your budget.


How Long Can a Company Get a Loan?


Long term loans usually start with a repayment term higher than one year.

Typically, long term loans have a maximum term of 25 years.

Check out all available options before deciding which loan is best for you.

Lenders will want an increase in revenue or profits before extending a new line of credit.

For what reasons might a company choose a long-term loan?


  • Longterm business loans offer lower payments over the life of the loan.
  • Long term loans are often synonymous with larger loan amounts.
  • Fixed interest rates are standard with long-term business loans.

How Long-Term Business Loans Work


A longterm business loan is an investment into your company that will help grow your business.

The interest rates on these loans are costlier than those of comparable alternatives, and banks typically have much lower interest rates but require strong financials and collateral. Alternative lenders may be more expensive, but there are fewer hoops to jump through to get approved.


Smaller monthly payments


  • Longterm loans offer lower monthly payments, but they cost more overall.
  • A short term loan is usually cheaper and comes with shorter repayment periods, offset by lower interest rates.
  • If you have multiple debts, a balance transfer credit card can help you pay them off faster.
  • Longterm loans are less expensive per month but cost more overall.
  • A loan can be a better option than using a credit card for a small business.
  • If you borrow less money, you can pay off the loan faster.

Fixed monthly payments


Fixed monthly payments mean no fluctuation in the amount you pay every month.


Higher funding amounts


Long term loans usually carry higher funding amounts. A long term loan allows you to borrow money for a more extended period, and larger funding amounts will enable you to expand into different areas of your business.

If you have bad credit, you may be able to find a willing lender; however, do not expect them to reduce their interest rate or waive fees.

The lender will look at how well you handle debt and whether you have any outstanding collections.

Banks and lenders have no legal obligation to give you these loans. They do so because they want to make money from lending you money.

Understand that lowering your monthly payments doesn’t always equate to a better deal. Interest rates vary depending on your loan type, and closing costs and other fees can increase over time.

Compare interest rates, shop around, and compare funding options before deciding which loan will work best for your business. Remember, online loans from non-bank lenders typically carry higher interest rates.

How Much do Long-Term Company Loans Usually Cost?



  • Interest Rate – 5.49% starting Annual Interest Rate
  • Terms – Terms ranging from one (short term business loans) to five years
  • Payments – Payments are MONTHLY
  • Prepayment – No Prepayment Penalty
  • Growth – You can use business funding for the growth of the business
  • Refinance – Use a business loan for debt consolidation
  • Get Funding – Get Funding in 2 to 10 days (business day start to finish)
  • Loan Amount – Get business loan amounts from $25,000 up to $5M

Competitive Rates


Longterm business loan rates typically start at around 3.5%, although they can go as high as 7% if you have a good credit rating. Average long-term business loan interest rates for well-qualified bank borrowers range between 3.25% – 6% depending on the lender and loan. However, the interest rate can run in the mid-teens or even as much as 36% depending on the industry, time in business, credit, etc. other factors, such as collateral cash flow, can impact the rates and terms.

Financial institutions are more likely to extend credit to established companies because they see a higher likelihood of future growth.

Getting Approved for a Long-Term Business Loan

What’s Required?


Long Term Business Loan Approval


Credit Score – For credit approval, you need a 680 Minimum Credit Score Requirement (Not loans for bad credit)

Debt Ratio – You need a small loan-to-debt ratio (not maxed out on debt) to qualify for a business loan

No Bankruptcy – In the past seven years, no bankruptcy

Profitable – At least one of the last two years should be profitable

Business – Minimum 3 years in Business

Owners – Need all owners that are 19% or more on the application

No Sole Props – No Sole Props

Tax Liens – Tax Liens in the past three years must be less than $1,000 and have a payment plan. Tax liens filed within the last decade (but not in the previous three years) must be less than $5,000 outstanding.


Collateral usually secures Long term business loans


  • A personal guarantee is usually required to secure a long term business loan.
  • You can apply for long term business loans without collateral. However, you may not receive the same terms as those who provide collateral.
  • Monthly payments are usually better suited for short term loans or lines of credit.
  • More significant amounts and longer terms may require daily or weekly payments.
  • Lenders will typically require collateral if you want an unsecured line of credit.
  • Find out what lenders require to approve you for a business loan.
  • Understand what type of business loan you need.

The Benefits of Long-Term vs. Shorter-Term Loan Financing


The main advantage of longterm financing is that it allows the company to plan and set a strategy based on the future needs of the business. 

Longterm financing provides a stable source of funding that can help a company avoid the risk of needing to raise additional funds during periods of economic uncertainty.

By matching the duration of the asset base with the duration of liabilities, a company can avoid paying interest during periods where there is little or no cash flow coming into the company. 

This strategy helps reduce the amount of debt outstanding and thus reduces the overall cost of borrowing.

Companies generally prefer working with lenders who have invested in them for years because they know what they’re doing and how to help the company grow. 

Lenders with shorter loan durations typically don’t understand the business the same way. Companies stand to gain from a strong relationship with lenders who provide them with long-term financing.

Long term financing offers lower payments and better returns than short-term financing. As a result, companies should consider long-term financing over short-term financing options when they are available to diversify their capital portfolio and minimize exposure to interest rate risks.

Diversifying your capital structure will help reduce your overall interest rate risk.


Long Term Business Loan Options


A long term business loan is a type of financing that allows businesses to borrow money over several years. It’s also known as “term loans” because they typically last between three and ten years.

To start your new business venture, you may need a long term business loan. But how do you find the right lender to help you finance your dream without breaking the bank?

I’ve got the answer for you. Below we will highlight what you need to know to secure a long-term business loan. We’ll delineate the general benefits and drawbacks of loans and examine some of the most common lending options.

We’ll also talk about the different lenders you should consider and how to choose the right one. Finally, we’ll dive into the details of applying for a long-term business loan, including what paperwork you need to submit along with your application.

Read on if you’re looking for a way to fund your next big idea!


Long Term Small Business Loans


A long term business loan is a business funding option used by companies to finance large purchases such as equipment, inventory, or commercial property. Assets usually secure these long term business loans.

The borrower owns these assets, like equipment, inventory, or real estate, or they are the assets secured by the loan. This security means the business lender has the first claim on any asset, including cash on hand, in the event of borrower defaults.

A long-term business loan is typically at higher interest rates than short term loans. The higher rate accounts for the additional risk of the time to repay the loan. The longer the term, as with all loans, the higher the rate. The appeal to the long-term loan is the monthly repayments are less on a five-year loan versus a 6-month loan.

Before considering taking out a long term business loan, here are some questions you should ask yourself to determine whether or not it makes sense for your company.

  • What will the money do for your business?
  • How much money do I need?
  • Can you afford not to borrow the money?
  • Will my business grow if I borrow money?
  • What is my ROI (Return on Investment)?
  • Can I afford the loan repayment?
  • Are they manageable payments?

To grow your business, you must ensure enough revenue and adequate cash flow to cover the loan payments. If you don’t think your business will grow, you probably shouldn’t take out a loan.

Do you prefer daily, weekly payments or monthly payments? Would you rather pay more per month or less per month? You need to know these things when deciding whether to take out long-term business loans. In short, there is a lot to think about before taking out any business loan.

The first thing that you should do if you want to get a business loan is to ensure that your credit score is good enough for it. You will have trouble getting approved for a loan if your credit score isn’t high enough. 

You can check your credit score online and look up your credit report.

Once you find your personal credit score, you can start thinking about which types of loans you might qualify. 

A long term loan is usually a better option if you want to invest money into a newer business or expand and grow an existing business. Loans can range from $25,000 $2M, depending on how much money you need.


Larger Funding Amounts with Online Application


Your small business loan application has two parts.

Part 1 is an overview of the company and its ownership. It includes your EIN and social security numbers, and these data points help review your overall creditworthiness, time in the business, industry, and other underwriting criteria.

Part 2 consists of a financial analysis of the bank statements. Generally, online lenders require only the last three months to analyze your cash flow and whether you can afford to borrow money.

For larger loan amounts, underwriters review the company’s cash flow statements, balance sheet, income statement, cash conversion ratio, debt ratios, and equity ratios. From this information, they determine whether the company is profitable enough to support future growth and whether it would be able to repay a loan.

Analysts also look at the company’s history, management team, competitors, and industry trends to predict the likelihood of future profitability. Analysts typically recommend between $10,000 – $2M (or the maximum loan amounts).

Once you submit your application, lenders usually contact you within 24 hours. If they decide to lend you the funds, they’ll send an email confirming the terms of the deal. Lenders charge interest rates ranging from 6% to 38%, depending on the amount of funding needed or loan type.

Most online loans come due six to eight months from the original agreement date. However, there are exceptions. You may qualify for more favorable terms from 18 months to 3 years, and SBA loans can be 10 to 25 years for traditional business term loans or commercial real estate, respectively.


U.S. Bank Business Loans vs. Venture Capital vs. Government Grants vs. Online Lenders


There are many benefits to financing through a bank (a traditional lender) or venture capital firm:

  1. Banks provide more flexible repayment options with a traditional business loan.
  2. Bankers often offer lower interest rates than private investors.
  3. Bankers understand the needs of entrepreneurs and small businesses.
  4. Bankers are familiar with local regulations and laws that affect companies.
  5. Bankers are subject to fewer legal restrictions than private investors.

However, bank financing carries risks too. Banks typically demand higher security deposits than venture capitalists, which means less flexibility. Also, banks tend to avoid riskier borrowers than venture capitalists because federal agencies regulate them.

Venture capitalists are privately owned investment firms that provide early-stage funding to innovative technology companies. 

Venture capitalists operate like private equity firms; they use their finance, marketing, and sales expertise to identify promising ventures and invest their clients’ money in these companies.

Unlike banks, venture capitalists generally prefer to invest in well-established high-growth companies. Venture capitalists are willing to accept more significant risks than banks.

For these reasons, you may seek financing directly from friends and family instead of using a bank. But if you wanted to raise 1 million dollars, I’d probably go to a banker or lender.

Most businesses require financing. 

Most small businesses need money to grow. 

Many entrepreneurs turn to the 3 Fs – family, friends, or fools for loans.

But most business owners don’t realize they can borrow money through long-term business loans. These loans last longer than 12 months, usually between 3 and 10 years.

These types of loans come with many benefits. For example, they allow you to build equity in your company without selling shares. They provide flexibility, and you can pay off the loan early or extend the term.

They also offer some protection against bankruptcy. Unlike traditional bank loans, which you pay in full upon default, some long term business loans have collateral. So, if you go bankrupt, the lender has an asset that he can sell to recoup his losses. 

Online lenders may offer a non-traditional guarantee which helps in the case of default. Speak to your lender about what happens in this situation.

To qualify for a long term business loan, you must demonstrate a strong cash flow and solid credit history. In your business plan, indicate that you have considered and accounted for all potential outcomes.

Your personal financials will also play a role in determining whether you qualify for a long term loan through a traditional lender. You’ll need to prove that you have the cash flow and enough assets to repay the debt.

Small businesses that need access to capital to expand but don’t yet have a track record can try to secure a long term loan. Long-term business loans are also outstanding for companies with existing revenue streams looking to invest in growth.

As with all forms of financing, there are drawbacks. For example, you might find that the terms offered by private lenders differ significantly from those of banks. You’ll need to shop carefully to ensure you get the best deal possible.

Also, you’ll need to consider how you will repay the loan. Will you use profits generated by the business? Will you draw down funds from savings? Will you raise additional funding?

Remember that this type of financing provides capital for long term projects. As such, the repayment period should be commensurate with the length of the project.

For example, a $100,000 loan for three years would probably be too risky for a startup. But a $1 million loan for five years could be perfectly appropriate.

Finally, remember that these loans are to fund expansion. If you decide to shut down operations after two years, you’ll likely owe more than the original amount borrowed.

In summary, long term business loans can be a good option when other sources of financing aren’t available. However, they carry some risks. Before applying for a loan, ensure you fully understand the terms and conditions.


Who Offers Financing Options for Long Term Loans


Bank Loans

A traditional bank loan is usually the most expensive form of financing, and banks charge interest rates ranging from 6% to 25%. Depending on the loan size, you might be required to put down at least 20% of the total cost of the equipment you purchase.

If you choose this route, you’ll need to show that you have enough collateral to back up your loan request. Collateral means something you own that will serve as security for the loan. Examples of collateral include real estate, cars, boats, and machinery.

If you don’t have any collateral, you may be able to secure a loan by putting up personal assets. However, defaulting on the loan means the lender can seize those assets.

Private Investors

Another way to finance your business is through private investors. Private investors are individuals who invest their own money into businesses they like. They hope to make a profit when the company’s value increases. The terms and conditions can be significantly different among investors. 

You must provide detailed information about your business plans and projections to attract investors. You should also present them with evidence that shows your business has potential.

Government Grants

The federal government offers several types of grants explicitly designed for small businesses. One example is the SBA 7(a) loan program. Under this program, qualified borrowers can borrow funds from the SBA at low-interest rates.

You must meet specific government requirements to qualify for a loan under this program. Among them are having less than $1 million in annual sales, being located in one of 34 states, and has been in business for less than five years.

In addition, you must submit a business plan that includes details about your business goals, projected increased annualized revenues, and expenses. You may be eligible for funding if you complete all of these steps.

Alternative Lenders

There are many alternative lenders out there who offer long term loans. These include online lenders, credit unions, peer-to-peer lending platforms, and microfinance institutions (MFIs).

Long term business loans are available through alternative or online lenders, often offering competitive loan terms. So if you need a short term loan, consider looking into alternative lenders instead of going back to the bank.

There are other sources of financing available to small businesses. These alternative lenders include private equity firms, venture capitalists, angel investors, and crowdfunding platforms.

As you consider which type of financing makes sense for your business, keep in mind that each option has its advantages and disadvantages. It’s essential to balance these factors carefully before making a decision.

What are the types of Long Term Business Loans?


Banks usually work well if you already have a relationship with them.

Online lenders are suitable for new businesses and people with less-than-perfect credit.

SBA loans are outstanding for smaller companies and startups.

Equipment Loans and Financing


Equipment financing is usually for purchasing new or secondhand office equipment, machinery, vehicles, and other items needed for running a business.

Many kinds of equipment financing are available, including equipment leases and sales through various financial institutions. 

Equipment financing is often cheaper than leasing, especially if you plan to buy an expensive item like a forklift.

If you have the available credit, one way to finance a large equipment purchase is through a credit card company.

Equipment financing is an alternative to bank loans and lines of credit.

Interest rates on equipment financing may vary depending on the type of equipment financed.

Equipment financing is usually for a term of up to six years.

Commercial Real Estate Loans


Commercial Real Estate Loans are common for buying a property that will be leased out to tenants. This type of loan is also for building construction projects.

Collateral, such as real estate or structures, is often required by lenders for this type of loan.

Loans against commercial real estate are frequently for acquiring or renovating commercial properties.

In many cases, a borrower may need to prove that they will use at least 50% of the building’s square footage before receiving financing.

SBA Loans


SBA loans require a minimum net worth of $150K for specific purposes.

These SBA-backed loans are outstanding for startups or businesses looking to grow.

U.S. Small Business Administration loans come in many forms, each with its benefits and drawbacks.

Each SBA loan comes with its own set of rules and regulations.

Some lenders will charge extra fees if you don’t qualify for an SBA loan.

Terms Loans


Term loans are good if you’re looking to finance an asset expected to generate additional revenue.

A term loan is a type of financing where you pay back the money over a certain amount of time.

When you take out a term loan, you usually don’t have to worry about interest rates changing.

Loan types typically have different interest rates. Generally, fixed-rate loans have more affordable monthly payments than their variable-rate counterparts.

Variable interest rate loans usually carry a higher APR than fixed-rate loans.

Merchant Cash Advance


A Merchant Cash Advance is a short term loan or, more technically, a cash advance. The advance usually does not restrict how you use the money; you can use it for any business purpose. It is also known as merchant cash advance, business cash advance, or MCA. 

A merchant cash advance is an alternative to traditional bank loans or lines of credit. The significant advantage of this type of financing is that it does not require collateral, and you do not have to use your personal assets as security for the loan.

Compared to other options, the disadvantage of this type of loan is that the repayment period is relatively short. Typically, these loans are only valid for six to twelve months. However, you can get up to $2M, and repayment reflects a percentage of your daily sales, and slower sales will extend the repayment time. 

How Does an Online Installment Loan Work with Alternative Lenders?


An online installment loan with an alternative lender is known as working capital. It is a type of business financing in which you borrow money from an online lender and make fixed, regular loan repayments over a set period.

This financing option offers term loans with a loan repayment between one to three years. These installment loan products online are prevalent and provide a strong business financing option.

The next consideration is the interest rate. Besides the actual percentage, the only question is whether it’s a fixed or floating rate. The loans made available to most small to mid-sized businesses are almost always of the fixed rates variety.

Business Loans Online Resources


Several websites offer free information on how to finance your business. 

These sites typically give you access to articles, calculators, and other tools that can help you determine whether a particular type of loan makes sense for you and your business.

Some of these sites include:

  • Biz2Credit – This site provides free information on how to get a business loan from banks, credit unions, and alternative lenders.
  • Financing Your Business – This site offers free information about getting a business loan. It includes links to many different sources of financing.
  • LendUp – This site offers free financial planning software that helps you create a plan for your business finances.
  • SBA Loan Finder – This site provides free access to an interactive tool that helps you search for government-backed loans.
  • Small Business Administration (SBA) – The U.S. Department of Commerce’s SBA website provides free information on how the agency works with entrepreneurs.
  • Venture Capital Firms – This site provides free info on venture capital firms and their services.


Other Websites

You can also use Google, Bing, or Yahoo! to search for “how to finance my business” to find a preferred lender. In addition, you could check local business directories such as Yelp.com or YellowPages.com.



In conclusion, long term business loans are loans offered to companies that have been around for a few years and have proven to be reliable sources of growing annual revenue. 

These types of loans have precise requirements, but if you meet them, they can provide you with the money you need to grow your company without putting too much pressure on you.

These loans are when a company has grown too large for its current bank and needs additional capital to expand into new markets or purchase equipment. 

Long term business loans are also helpful if a company wants to buy another company but doesn’t have enough cash to cover the entire cost.

If you want to learn more about how Sunwise Capital can help you finance your business, contact us today!


Mark J. Kane, Founder & CEO of Sunwise Capital, is a distinguished entrepreneur with over 16 years in business financing. Beginning as a psychologist, he quickly became a trailblazing Hospital Administrator. Mark has built multiple ventures, notably accelerating a startup to $18M within months. His transition to Sunwise Capital stems from a deep-seated desire to empower business owners with strategic financial solutions. Recognized for his expertise, Mark's leadership at Sunwise Capital reflects his commitment to fostering business growth and success. about the author.

Take Your Business Further With A Loan From Sunwise Capital