What is a Term Loan?
A LendSpark business term loan is a loan with a fixed interest rate that is repaid in regular payments over a set period – typically 1, 2, 3 or 4 years.
The ability to repay over a long period of time is attractive for growing businesses, as the expectation is that you will continue to increase your profit over time. Term loans are a good way of quickly increasing capital in order to increase inventories, add new employees, improve marketing, etc.
What are the Benefits?
- Likely Tax Advantages Under IRS 179
- Finance Rates as Low as 5%
- Flexible Payback Terms from 3 Months – 5 years
- Numerous Types of Leases (True, FMV, $1 buyout, etc.) for All Businesses
- Fast Approvals – Often Same Business Day
- Less Documentation and Faster Funding than Other Options
How Does It Work?
Because Term Loans are offered over longer repayment terms and at more attractive financing rates, they also involve the collection of specific personal and business information. This includes information regarding you (SSN and DOB), your business (Federal tax ID, business entity type, State of Incorporation, time-in-business, etc.), your business’ ownership structure (names, ownership percentages and personal information for all owners) and a description of how you intend to use the funds.
The information required can be collected very quickly, and any additional data verification or phone calls will be conducted within 1-2 business days from original submission of the documentation. If approved, LendSpark will provide you with a preliminary loan approval and, if you’d like to proceed, you will execute a LendSpark engagement agreement. The loan can be funded within 1-2 business days from the receipt of your executed loan documents.
- No recent bankruptcies and no material outstanding liens or judgments against you or your business
- You will provide a personal guaranty and other guarantors may be required *
- You have been in business for at least 2 years (we require more for some industries)
- You have at least 2 full-time employees, excluding yourself
- You are authorized to apply for credit on behalf of your business
- You agree to utilize electronic loan documentation and understand that monthly payments will be debited electronically from your business account **
- Your loan is not intended for and will not be used for personal, family or household purposes
“A LendSpark business term loan is a loan with a fixed interest rate that is repaid in regular payments over a set period.”
* We require an unlimited, joint and several personal guaranty from shareholders, partners or members representing at least 60% of the business’ ownership
** Loan offers include a discounted interest rate for agreeing to ACH payments. Interest rates to customers that elect to pay with paper checks will not reflect this discount
LendSpark offers a wide variety of solutions and our experienced professionals will present you with the best fit for your needs, budget and business profile.