Business Term Loans
Straightforward, fixed-term financing with predictable monthly payments. Get a lump sum of capital for expansion, inventory, hiring, or any business purpose\u2014and repay on a set schedule that fits your cash flow.
A business term loan gives you a lump sum repaid in fixed monthly installments. Growth Fund Partners funds $25K to $1M with 1 to 5 year terms and fixed rates from 6% — predictable financing for expansion, equipment, hiring, or debt consolidation when you know exactly how much you need.
How business term lending works
A business term loan is the simplest form of commercial financing: you borrow a lump sum, repay it in fixed monthly installments over a set period, and know the exact cost from day one. The rate is fixed, the payment is fixed, and the payoff date is fixed\u2014no surprises.
Underwriting looks at your business\u2019s financial track record\u2014revenue, profitability, time in business, and your personal credit as the owner. Because the lender is evaluating your ability to repay over time, strong and steady cash flow matters more than collateral. That said, loans above a certain threshold may require a lien on business assets.
Growth Fund Partners arranges term loans from $25,000 to $1 million through our bank network, with rates starting from 6 percent and terms of 1 to 5 years. For larger or longer-term needs, we can structure an SBA loan with up to 25-year terms and even lower rates.
When a term loan is the right tool
Term loans work best when you have a defined use for a specific amount of capital and want predictable repayment. If your need is ongoing or fluctuates month to month, a business line of credit may be a better fit. Common term loan uses include:
- Business expansion. Open a new location, enter a new market, or scale operations with a known investment amount.
- Hiring and payroll. Fund new team members during a growth phase when revenue has not yet caught up.
- Renovations and build-out. Upgrade your space, complete a tenant improvement, or remodel facilities.
- Inventory and bulk purchases. Stock up for seasonal demand or lock in volume discounts from suppliers.
- Debt consolidation. Replace multiple high-rate balances with a single, lower-rate monthly payment.
A quick example
A marketing agency wins three new accounts and needs $150,000 to hire four team members and build out a second office. A 3-year term loan at 7.5 percent gives the agency roughly $4,700 in fixed monthly payments\u2014predictable enough to budget against the new account revenue, with the loan fully retired before the third year is up.
Term Loan Programs
Short-term, long-term, and working capital loans structured to meet your business financing needs.
Short-Term Business Loans
Fast Capital for Immediate Opportunities
Long-Term Business Loans
Multi-Year Financing for Strategic Business Growth
Working Capital Loans
Financing for Day-to-Day Business Operations
Rates & Terms
Transparent, current terms for this program. Final pricing depends on the deal, collateral, and borrower profile.
| Loan amount | $25,000 – $1,000,000 |
|---|---|
| Interest rate | From 6% (fixed) |
| Loan term | 1 – 5 years |
| Payment | Fixed monthly |
| Typical minimum | ~2 years in business, steady revenue |
| Time to close | A few days to 2 weeks |
Term Loan vs. Line of Credit
| Feature | Term Loan | Line of Credit |
|---|---|---|
| Structure | One-time lump sum | Revolving credit limit |
| Payment | Fixed monthly | Interest on drawn balance |
| Rate | Fixed from 6% | Variable (Prime + margin) |
| Reusable | No | Yes, as you repay |
| Best for | Planned, large purchases | Ongoing cash-flow needs |
| Term | 1 – 5 years | Revolving / renewable |
Process & Timeline
A straightforward path from first conversation to funded — with no surprises along the way.
Submit your application (Day 1)
Provide your application along with bank statements, recent tax returns, and a brief description of how you plan to use the funds.
Financial review (Day 1–3)
We assess your revenue, time in business, credit profile, and cash flow to size the loan and lock your rate.
Term sheet & approval (Day 3–7)
You receive a fixed-rate term sheet showing the exact monthly payment, total cost, and payoff schedule.
Loan documents (Day 5–10)
We prepare closing documents. If collateral is required, any lien filings are handled in parallel.
Funding (Day 7–14)
Sign, and your lump sum is deposited — most term loans fund within one to two weeks of application.
Sources & Market Data
- In the 2025 Small Business Credit Survey, 42% of applicants received all the financing they sought and 22% received none. Federal Reserve Banks, 2026 Report on Employer Firms (Small Business Credit Survey) (2026).
- Banks reported continued tightening of C&I lending standards for small firms in Q4 2025. Federal Reserve, Senior Loan Officer Opinion Survey (SLOOS) (January 2026).
What to watch out for
Fixed payments are predictable, but they are also inflexible. If your revenue dips temporarily, the payment does not adjust. Make sure the monthly obligation is comfortably covered by your worst-case cash flow, not just your best month.
Check whether your loan has a prepayment penalty. Most of the term loans we arrange do not, but some lenders include a minimum interest period or early payoff fee. If you think you might repay early\u2014through a refinance or a windfall\u2014confirm the terms before signing.
Finally, borrow only what you need. It is tempting to take a larger amount \u201Cjust in case,\u201D but every dollar borrowed accrues interest. If your needs are uncertain or recurring, pair a modestly sized term loan with a line of credit for ongoing flexibility. For a comparison of these two tools, read our line of credit vs. term loan guide.
Frequently Asked Questions
Straight answers to the questions borrowers ask us most.
A business term loan gives you a lump sum — from $25,000 to $1 million — repaid in fixed monthly installments over 1 to 5 years. It is ideal for one-time investments like expansion, equipment, or renovations where you know the exact amount you need.
Most term loans require a credit score of 650 or higher, along with steady revenue and typically at least two years in business. Stronger credit and financials unlock larger amounts and lower rates, but solid cash flow can offset a borderline score.
Business term loan rates start around 6%, with your exact rate based on credit, time in business, revenue, and loan term. Our term loans carry fixed rates, so your payment stays the same every month, making budgeting predictable throughout the life of the loan.
Many term loans fund within a few business days to two weeks once your application and financials are reviewed. Having your tax returns, bank statements, and financial statements ready speeds up approval so you can put the capital to work sooner.
A term loan provides a one-time lump sum repaid on a fixed schedule, best for planned, large purchases. A line of credit is revolving, letting you draw and repay repeatedly for ongoing or unpredictable needs. Many businesses use both together.
You can use a term loan for expansion, equipment purchases, hiring, renovations, inventory, refinancing debt, or other major investments. Because you receive the full amount upfront with predictable payments, term loans work best for defined projects with a clear return on investment.
Ready to Apply for a Term Loan?
Get a lump sum of capital with fixed monthly payments and competitive rates through our bank network.