Term Loans can be utilized in a multitude of ways. These loans give the borrower flexibility to allocate funds to different areas within the business to further the growth of the business. A Traditional business term loan is a lump sum of capital that you pay back with regular repayments at fixed interest rate. The “term” in “term loan” refers to the set repayment length, which will typically be one to five years long.
Common use of these loans include: Marketing, Payroll Inventory, Taxes and etc..