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Business Term Loans

Growing businesses need access to a variety of common business financing products. Sentext Capital has the solution.

Small Cap loans $20k-$250k

Med Cap loans $251k-$1.5m

3 months+ in business

Business term loans 3-10 years

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Operating Costs

Manage operating costs with a suite of financing tools to accelerate cashflow

Gap Funding

Access funds now before a contract pays or between purchase date and close on term financing

Cap X Funding

Finance real assets like equipment and commercial real estate to increase production, reduce cost, and build equity
Find Fixed and Variable Rate Business Term Loans
Find Fixed and Variable Rate Business Term Loans

Loan Overview

Business Term Loans

Term loans provide fixed or variable interest rates with a set number of payments. Amortization can meet the loan term, or extend beyond, requiring a balloon payment or refinancing at the conclusion of the term.

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150+

Lenders in the network

20K - 50M

Money available to share

24 Hours

To Process the funding

Understanding Business Term Loans

Tailored to Your Growth Goals

Business loans, whether short-term or long-term, provide critical financial support tailored to meet various business needs. Short-term loans are ideal for managing immediate cash flow issues, covering operational expenses, or handling unexpected emergencies. These loans typically have quicker repayment periods, often under a year, and help businesses maintain agility.

On the other hand, long-term loans are better suited for substantial investments such as purchasing equipment, expanding facilities, or funding large projects. Their extended repayment terms often come with lower monthly installments, making them easier to incorporate into long-

Fund Your Business

A Variety Of Terms For A Variety Of Solutions

Acquire

Purchase equipment, real estate, or even a franchise.

Fund

Secure short-term capital to fund growth initiatives.

Flex

Access funds not tied to fixed spending criteria.

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Start Your Financial Journey

SenText Capital - the financial home that's right for your business.

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Our Pillars of Success

Guiding you through our three-step process

Your Personal Agent

01

Each business owner works directly with a single agent to cultivate continuity on the financing journey.

Team Support

02

Your loan and agent are supported by a robust back-office team of underwriters who facilitate your loan through to approval.

Scalable Process

03

Our process supports loans from $25,000 to $500,000. No matter your level of business, tap into our robust skillset.

Looking for an alternative to a business term loan?

Choose among interest rates, term length, revolving credit, and cash flow acceleration with a variety of financing solutions matched to your business objectives.

  • Factoring
  • Business Line of Credit
  • SBA Express Loan
  • Bridge Loan
  • Working Capital Loan

FAQ’s

Frequently Asked Questions

What Are Business Term Loans?

Business term loans are a type of financing designed to provide businesses with a lump sum of capital, which is then repaid over a predetermined period with interest. These loans are often used to fund a variety of business expenses, from purchasing equipment to scaling operations or even acquiring another company. The terms of the loan, including the repayment schedule and interest rate, are agreed upon upfront, providing borrowers with a clear roadmap for repayment. Term loans can range from short-term options, lasting less than a year, to long-term loans that extend over several years, depending on the borrower’s needs and qualifications. They are typically offered by traditional banks, credit unions, and online lenders, each with varying degrees of flexibility and requirements.

Term loans are ideal for businesses with clear funding goals and a steady revenue stream. They can support growth strategies while providing the borrower with predictable repayments. However, they also come with specific eligibility criteria, often requiring good credit scores, business financial history, and collateral in some cases. Understanding how term loans function and their unique features can help businesses make informed decisions when securing funds.

How Do Business Term Loans Work?

Business term loans operate on a straightforward principle. Once approved, the lender provides the full loan amount in one disbursement. The business then agrees to repay the loan through regular installments, typically monthly, over the established term. These installments include a portion of the principal amount and an interest component, which is calculated based on the agreed-upon rate. The loan term can vary significantly depending on the lender and the purpose of the loan — short-term loans might span a few months to a year, while long-term loans can extend up to 10 years or more.

The application process for a term loan generally requires the borrower to provide documentation, such as financial statements, business plans, credit history, and sometimes collateral. With these factors, the lender assesses the risk and determines the loan terms, including the interest rate, repayment schedule, and any additional fees. Interest rates for term loans may be fixed, remaining consistent throughout the loan’s life, or variable, fluctuating according to market conditions.

Repayment of term loans is usually done through automated payments, ensuring businesses stay on track with their obligations. Missing payments or defaulting on the loan can result in penalties, damage to credit scores, or even loan acceleration, where the lender demands immediate repayment of the remaining balance. Thus, businesses should assess their cash flow and repayment capabilities thoroughly before applying.

Business Term Loan Benefits

Business term loans offer a host of advantages for companies in need of financing. One of the primary benefits is their predictability. Since the repayment schedule and interest rate are outlined at the start, businesses can plan their finances without the uncertainty that often accompanies more flexible forms of credit, such as credit lines. This financial predictability makes term loans an appealing option for businesses aiming to fund long-term projects or one-time capital expenditures.

Another advantage is the ability to secure significant amounts of financing. Depending on the creditworthiness of the business and other factors, lenders may approve term loans for hundreds of thousands or even millions of dollars. This makes them ideal for purchasing property, upgrading infrastructure, or funding other major expenses that could otherwise be out of reach. Furthermore, lower interest rates are often available for borrowers with strong credit profiles, especially when compared to other financing options like credit cards or merchant cash advances.

A business term loan can also help build a company’s credit history if paid responsibly. This improved credit standing can make it easier to secure future financing on more favorable terms. Finally, long-term loans can be tailored to fit into strategic growth plans, spreading the cost of large investments over a manageable period and preserving cash flow for day-to-day operations.