Term Loans
A term loan provides a lump sum of capital repaid over a fixed schedule with a set term, commonly used for larger investments such as expansion, renovations, or major purchases. ASBCLF connects applicants with lenders offering short-, medium-, and long-term business term loans.
What Is Term Loans?
A term loan delivers a one-time lump sum that you repay in regular installments over a defined period—ranging from a few months to several years. Short-term loans (typically under 18 months) suit quick needs; medium-term loans (1–3 years) balance cost and speed; long-term loans (3–25 years, including SBA loans) suit major investments. Most term loans carry a fixed or variable interest rate and may be secured or unsecured.
How It Works
- Submit an application through ASBCLF with details about your business and how you will use the funds.
- ASBCLF matches your application with lenders offering term loans suited to your needs.
- The lender reviews your revenue, time in business, credit, and ability to repay.
- If approved, you receive a lump sum and repay it in fixed installments over the agreed term.
Typical Use Cases
- Business expansion and new locations
- Renovations and build-outs
- Large equipment purchases
- Debt consolidation
- Acquiring another business
- Hiring to support growth
Eligibility Considerations
- Stable business revenue and cash flow
- Established time in business
- Acceptable personal and/or business credit
- Sufficient debt service coverage
- Collateral, for secured term loans
Eligibility varies by lender and program. ASBCLF submits your application to its lender network; individual lenders set their own criteria and make their own decisions.
Documents You May Need
- Business and personal tax returns
- Business financial statements
- Business bank statements
- Business plan and use of funds
- Debt schedule
- Collateral documentation, if applicable
Repayment Structure
Term loans are repaid in fixed installments (monthly, weekly, or daily) over the agreed term. Short-term products may use daily or weekly debits, while longer terms typically use monthly payments. Some products include prepayment penalties or discounts.
How It Compares
Term loans provide predictable, structured funding. See how they compare to related financing.
Frequently Asked Questions
What is a term loan?▾
A term loan provides a lump sum of capital repaid in fixed installments over a set period. It is commonly used for larger investments such as expansion, equipment, or acquisitions, and can range from a few months to many years.
How long are term loan repayment terms?▾
Terms vary widely: short-term loans are typically under 18 months, medium-term loans one to three years, and long-term loans three to twenty-five years. The right term depends on the loan purpose and your cash flow.
What is the difference between a term loan and a line of credit?▾
A term loan provides a single lump sum repaid on a fixed schedule. A line of credit is revolving: you draw and repay repeatedly up to a limit and pay interest only on what you borrow.
Are term loans secured or unsecured?▾
Both options exist. Secured term loans are backed by collateral such as equipment or real estate and may offer lower rates. Unsecured term loans rely on business performance and credit, often with shorter terms.
Ready to explore term loans?
Submit a single application and ASBCLF will match you with lenders suited to your business.
Apply for Business FinancingPage last reviewed: 2026-09-26.