What is a Term Loan

A term loan is a common financing option that provides businesses with a one-time lump sum of capital, which is repaid over a set period with fixed or variable interest rates. These loans are ideal for businesses looking to make significant investments, such as purchasing inventory, expanding operations, or funding long-term projects. With predictable repayment schedules, term loans offer stability and help businesses plan their financial future.

By securing a term loan, businesses can access the necessary capital without disrupting their cash flow. Whether you need short-term financing for immediate needs or a long-term loan for major investments, term loans provide a structured way to finance business growth while maintaining financial control.