Most people in search of business funding quickly realize how many solutions there are to choose from. Whether one is considering a small business loan or alternative financing options such as a merchant cash advance, different options come with different pros and cons. However, certain characteristics are typically attractive to all merchants, including low rates, flexibility, and predictable payment schedules. A term loan is a type of alternative business funding that offers each of these valuable features.
Term loans are loans that are repaid in regular payments over a fixed period of time. The repayment schedule for the full amount is disclosed at the beginning of the agreement, giving the recipient a clear understanding of what they will owe. This allows businesses to secure the short-term funding they need while allowing them to plan accordingly for the future. Because term loans sometimes extend over longer periods of time, they are also associated with lower, fixed interest rates. Of course, the standing of the business and terms of the agreement play a large part as well. Term loans are also quite versatile in how they can be used and often offer flexible repayment options.
Who Can Benefit from a Term Loan?
Ideally suited for strong, well-established businesses, term loans are an attractive alternative to traditional small business loans for qualified merchants. Moby Capital can offer some of the largest term loans in the industry and works closely with each client to secure the most beneficial terms.
*MobyCap is not providing funding to new/startup companies at this time. We require a business to be operational for at least one year and generating $50k per month in revenue to do so.
Frequently Asked Questions:
A term loan is a loan that is repaid in regular payments over a fixed period of time, which offers businesses flexibility and low interest rates in many cases.
Term loans are attractive to small businesses due to flexible use and repayment options, clear repayment schedules, and relatively low interest rates.