Term Loans

A term loan is a loan for a specific amount that has a specified repayment schedule and a fixed or floating interest rate. For example, many banks have term-loan programs that can offer small businesses the cash they need to operate from month to month. Often, a small business uses the cash from a term loan to purchase fixed assets such as equipment for its production process. Length of term can range from 3-10 years with an APR rate as low as 7%.