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Business loan terms or business loan <\/span>repayment <\/span><\/i>terms?<\/span><\/p>\n <\/p>\n Whichever you\u2019re looking for, you\u2019ll find it here.<\/span><\/p>\n <\/p>\n Get a better idea of business loan repayment terms and rates <\/span>and<\/span><\/i> a glossary of important finance-related definitions, all below.<\/span><\/p>\n <\/p>\n <\/p>\n Normally, when you hear people talk about \u201cbusiness loan terms\u201d, what they\u2019re really referring to are business loan <\/span>repayment<\/span><\/i> terms. In other words, business loan terms are the amount of time that borrowers have to pay the lender back the funds.<\/span><\/p>\n <\/p>\n It shouldn\u2019t come as any surprise that business owners who are looking to obtain financing are usually going to want information about the business loan terms <\/span>and<\/span><\/i> rates. Knowing that info will let business owners like you determine whether a particular loan is a good fit for them or not.<\/span><\/p>\n <\/p>\n Note:<\/b> Different businesses will find that certain loan types will be better matched to their needs. That\u2019s why there are <\/span>industry loans<\/span><\/a> that are designed to meet the requirements of businesses that work in different sectors. Have a look over them before applying for business loans!<\/span><\/p>\n<\/blockquote>\n <\/p>\n Typical business loan terms and rates can range from a number of weeks with high interest rates, up to 30 years with much lower rates. So, when you ask \u201chow long are business loan terms?\u201d, you can expect to find that the answers that vary greatly from one loan to the next.<\/span><\/p>\n <\/p>\n Having a variety of business loan terms to work with is a big advantage when you stop to think about it. There may be situations where you\u2019re in need of <\/span>fast business funding<\/span><\/a> – in which case a short loan term may not be the worst thing in the world. Likewise, you may be planning ahead to <\/span>scale up your business<\/span><\/a>, in which case stretching the repayment term over a number of years would likely be a better fit.<\/span><\/p>\n <\/p>\n Whatever your purpose for taking a business loan is, it\u2019s always going to be helpful to have a clear understanding of the different loan types and the average business loan terms for each of them. Keep reading to get the full scoop!<\/span><\/p>\n <\/p>\n <\/p>\n <\/p>\n If your business is short on valuable assets, but still shows a strong financial profile in other ways (credit score, monthly revenue, etc.) – then <\/span>unsecured business loans<\/span><\/a> could be the right fit for you. Qualifying is a bit tougher than for other types of business loans, but for good reason! The business loan terms and rates for unsecured loans are among the best around.<\/span><\/p>\n <\/p>\n <\/p>\n Often considered by business owners to be the gold-standard of financing options, <\/span>SBA loans<\/span><\/a> arguably have the best business loan terms and rates of all. That\u2019s because SBA loans aren\u2019t really loans at all, they are guarantees that the government gives to back up loans given out to small businesses. Since SBA loans give lenders the security of government guarantees, they have typical business loan terms and rates that beat pretty much all other loan options.<\/span><\/p>\n <\/p>\n <\/p>\n A <\/span>business line of credit<\/span><\/a> works almost exactly the same as a credit card – the business owner is given a credit limit based on the business\u2019s health and stability, and those funds can be used on an as-need basis for basically any business-related expense. If it\u2019s a revolving line, that means the credit limit replenishes as you pay back funds you\u2019ve withdrawn. This is one of the most flexible types of <\/span>business loans<\/span><\/a>.<\/span><\/p>\n <\/p>\n <\/p>\n <\/p>\n As the name suggests, <\/span>asset-based loans<\/span><\/a> are a type of business financing that is secured with valuable assets (otherwise known as collateral). As far as average business loan terms and rates, having assets to back up a loan can be very helpful. The business loan terms are typically shorter than unsecured business loans, but that\u2019s generally due to the depreciation that assets undergo over extended periods of time. But the business loan rates are better than unsecured loans – so it really depends on what your financial goals are.<\/span><\/p>\n <\/p>\n <\/p>\n Your small business may depend heavily on having up-to-date and properly functioning equipment. If you\u2019re aiming to <\/span>purchase or lease equipment<\/span><\/a>, or even repair some machinery, then <\/span>equipment financing<\/span><\/a> will meet your funding needs. This is a useful business funding solution if you need extra cash to keep your <\/span>manufacturing<\/span><\/a>, <\/span>construction<\/span><\/a>, or <\/span>contractor<\/span><\/a> business running at full capacity.<\/span><\/p>\n <\/p>\n <\/p>\n If you\u2019re looking for a quick way to <\/span>deal with unpaid invoices<\/span><\/a>, then invoice factoring is the answer. This is the easiest way to gain access to cash that\u2019s tied up because of slow or non-paying customers. With <\/span>invoice factoring<\/span><\/a>, the lender will provide you with 80% of the value of the invoices upfront, then the final 20% after collecting from your customers (keeping between 1% and 4% as payment for the services).<\/span><\/p>\n <\/p>\n <\/p>\n Need to give your <\/span>trucking finances<\/span><\/a> a boost so you can grow your fleet? Looking to expand your restaurant business with a food truck concept? Whatever the exact industry is, your business\u2019s success may rely on vehicles. In that case, <\/span>commercial vehicle loans<\/span><\/a> are an ideal solution. One of the best parts is that the vehicle itself serves as collateral on the loan, so you don\u2019t need to put other assets on the line.<\/span><\/p>\n <\/p>\n <\/p>\n A <\/span>merchant cash advance<\/span><\/a>, or MCA for short, is a lump sum loan that businesses repay through automatic deductions from future credit and debit card transactions. MCA\u2019s are among the easiest funding options to qualify, and the average business loan terms aren\u2019t out of the ordinary. But the tradeoff for easy qualification and quick access to funds is that the rates you\u2019ll find with MCA\u2019s are generally higher than you\u2019ll see with other types of business financing.<\/span><\/p>\n <\/p>\n <\/p>\n With these average business loan terms in mind, you should have a firmer grasp on which business loans are better for your specific needs. Remember that these are just typical business loan terms. The exact repayment terms you\u2019ll get will depend on the lender, the loan type, and the financial health & stability of your business.<\/span><\/p>\n <\/p>\n <\/p>\n If you\u2019re not asking \u201chow long are business loan terms?\u201d and you\u2019re really looking for a glossary of financial terminology – scroll down!<\/span><\/p>\n <\/p>\n <\/p>\n Business loan terms can be confusing, we get it. Unsecured or secured, term or revolving credit, fixed or floating. And that\u2019s just the tip of the iceberg. We at Become<\/a> are here to help you learn the lingo, which is why we came up with this comprehensive guide to business loans. Consider it your go-to dictionary, the A-Z (although it technically goes up to W), for everything related to small business funding.<\/span><\/p>\n <\/p>\n Make sure to read all the way through, as there are some terms in there that would confuse even the most financially savvy of us. We recommend bookmarking this page for easy as-needed access.<\/span><\/p>\n <\/p>\n If you come across an unfamiliar term during your loan application process, find it quickly using the Quick Jump tool below.<\/span><\/p>\n <\/p>\n Quick Jump To\u2026<\/span><\/p>\n Small Business Financing Terms: The \u201cF\u2019s\u201d<\/a><\/span><\/p>\n Small Business Financing Terms: The \u201cL\u2019s\u201d<\/a><\/span><\/p>\nWhat are business loan terms?<\/span><\/h2>\n
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<\/p>\nCommon business loan terms for different loan types<\/span><\/h2>\n
1. Unsecured loan<\/span><\/h3>\n
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2. SBA loan<\/span><\/h3>\n
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3. Line of credit<\/span><\/h3>\n
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<\/p>\n4. Asset-based loans<\/span><\/h3>\n
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5. Equipment financing<\/span><\/h3>\n
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6. Invoice factoring<\/span><\/h3>\n
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7. Vehicle loans<\/span><\/h3>\n
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8. MCA<\/span><\/h3>\n
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<\/a><\/p>\nComplete glossary of small business financing terms<\/span><\/h2>\n
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