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Term Loan
A term loan is a fixed-amount business loan repaid over a set period with scheduled monthly principal and interest payments.
Last updated Reviewed by ICG Funding
Definition
What it means.
Term loans are the most traditional business financing structure. You receive a lump sum at closing and repay it on a schedule, usually monthly, over 1 to 10 years. Rates can be fixed or variable; most are fully amortizing with no balloon.
Term loans are the right fit for one-time, concrete uses of capital: a build-out, an acquisition, a piece of equipment, a marketing campaign. They are less flexible than a line of credit but usually cheaper over time.
Now what?
Get an offer that accounts for term loan.
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