Long-term business loans can typically be repaid over three to 10 years, and in some cases as long as 25 years. That can make these small-business loans a good choice for companies seeking to spread out the financial impact of large investments, like opening a new location or buying expensive equipment.
Long repayment terms may result in smaller monthly payments but more repaid overall, depending on your interest rate. You’ll likely need to be an established business with strong credit to qualify for a long-term business loan.
Here are our picks for the best long-term business loan options, plus information on how much these loans cost and how they compare to other financing options.
How much do you need?
We’ll start with a brief questionnaire to better understand the unique needs of your business.
Once we uncover your personalized matches, our team will consult you on the process moving forward.
Here are 6 long-term business loans
Lender | NerdWallet Rating | Max loan amount | Min. credit score | Next steps |
|---|---|---|---|---|
SBA 7(a) loan with Fundera by NerdWallet | Best for Long-term business loans up to 25 years | $5,000,000 | 650 | with Fundera by NerdWallet |
SBA CDC/504 loans with Fundera by NerdWallet | Best for Long-term business loan for real estate | $5,000,000 | 680 | with Fundera by NerdWallet |
Funding Circle - Online term loan with Fundera by NerdWallet | 5.0/5 Best for Long-term business loans up to 5 years | $500,000 | 660 | with Fundera by NerdWallet |
Credibility Capital - Online term loan with Fundera by NerdWallet | 4.5/5 Best for Fast long-term business loan | $500,000 | 650 | with Fundera by NerdWallet |
SBA Microloan with Fundera by NerdWallet | Best for Long-term business loans for bad credit | $50,000 | 620 | with Fundera by NerdWallet |
Triton Capital - Equipment financing with Fundera by NerdWallet | 4.0/5 Best for Long-term equipment loan | $250,000 | 600 | with Fundera by NerdWallet |
Here are 6 long-term business loans
Best for Long-term business loans up to 25 years
Best for Long-term business loan for real estate
Best for Long-term business loans up to 5 years
Best for Fast long-term business loan
Best for Long-term business loans for bad credit
Best for Long-term equipment loan
Our pick for
Long-term business loans up to 25 years
SBA 7(a) loan
Max Loan Amount
$5,000,000
Min. credit score
650
Est. APR
10.00-12.50%
7(a) program participants include specialized lenders like Live Oak Bank and big-name traditional banks like Wells Fargo.
Lowest interest rate
Max loan
$5,000,000
Min. Credit score
650
Apr range
10.00-12.50%
Our pick for
Long-term business loan for real estate
SBA CDC/504 loans
Max Loan Amount
$5,000,000
Min. credit score
680
Est. APR
2.60-3.20%
You cannot put an SBA CDC/504 loan toward working capital, existing debt or a rental real estate investment.
Max loan
$5,000,000
Min. Credit score
680
Apr range
2.60-3.20%
Our pick for
Long-term business loans up to 5 years
Funding Circle - Online term loan
Max Loan Amount
$500,000
Min. credit score
660
Est. APR
5.99-16.49%
Funding Circle is an option for established businesses that are financing an expansion or refinancing debt.
May fund quickly
Max loan
$500,000
Min. Credit score
660
Apr range
5.99-16.49%
Our pick for
Fast long-term business loan
Credibility Capital - Online term loan
Max Loan Amount
$500,000
Min. credit score
650
Est. APR
9.49-15.49%
Credibility Capital offers low-cost business loans that work best for small-business owners with strong credit.
Max loan
$500,000
Min. Credit score
650
Apr range
9.49-15.49%
Our pick for
Long-term business loans for bad credit
SBA Microloan
Max Loan Amount
$50,000
Min. credit score
620
Est. APR
8.00-13.00%
The average microloan is roughly $13,000, according to the Small Business Administration.
Max loan
$50,000
Min. Credit score
620
Apr range
8.00-13.00%
Our pick for
Long-term equipment loan
Triton Capital - Equipment financing
4.0
NerdWallet rating with Fundera by NerdWallet
Max Loan Amount
$250,000
Min. credit score
600
Est. APR
5.99-35.00%
Triton Capital offers fast equipment loans up to $250,000 for businesses in a range of industries.
4.0
NerdWallet rating Max loan
$250,000
Min. Credit score
600
Apr range
5.99-35.00%
with Fundera by NerdWallet
How Much Do You Need?
Long-term business loans are lump sums of capital paid back over a set period of time — typically from three to 10 years. Some loans, like SBA loans, can have even longer terms of up to 25 years.
Long-term loans are usually repaid on a monthly basis, with fixed, equal payments over the course of the term. Generally, this type of financing follows an amortization schedule, where you pay more toward interest at the beginning of the loan and more toward the principal at the end.
Long-term small-business loans can make sense for purchasing equipment or real estate, renovating or expanding your business, hiring new employees, refinancing existing debt and more.
SBA 7(a) and SBA 504 loans
These government-backed small-business loans typically have some of the lowest rates and the longest repayment terms in the market. You work with U.S. Small Business Administration-approved banks and other lenders to qualify for these long-term business loans of up to $5 million. The typical repayment period is 10 years for SBA loans for working capital and equipment, and up to 25 years for large assets such as land and facilities.
How to qualify: SBA loan requirements typically include being in business for at least two years and having strong annual revenue. Generally, you'll also need a good personal credit score of 690 or higher (although some SBA lenders may have lower score requirements).
Many SBA loans are secured business loans, which means you may need to provide collateral.
SBA microloans
The SBA also offers microloans, which are distributed through nonprofit community institutions. These institutions often focus on working with underserved business owners, such as minority business owners and women business owners. SBA Microloans have terms up to six years and are typically easier to qualify for than other types of SBA loans — but they are only available in amounts up to $50,000, which may not be ideal for funding larger projects.
Bank loans
Traditional lenders provide long-term business loans with repayment terms from five to seven years. Banks tend to offer lower interest rates than online lenders, but your exact rate will depend on your qualifications.
Aside from big banks, you can also apply for a long-term bank loan at your community bank or credit union.
How to qualify: You typically need to be an established business with strong annual revenue and a good personal credit score (likely in the 700s or higher) to get a long-term business loan with a competitive rate. Banks also may require collateral.
Online business loans
If you don't qualify for an SBA loan or bank loan — or you want funding faster — consider long-term loans from online lenders, such as Funding Circle or Credibility Capital. Both online lenders offer repayment terms of up to five years.
How to qualify: Online lenders tend to have less stringent requirements than banks. You may not need to meet a minimum annual revenue to qualify, and their credit score requirements may not be as high. Some online lenders will require a personal guarantee, but won’t require that you put up physical collateral on the loan.
There is no set industry standard for what’s considered a long-term or short-term business loan. The dividing line between the two is often a three-year repayment period, though business loans with terms from one to three years are sometimes referred to as medium-term loans.
The chart below highlights some of the key differences between long-term and short-term business loans.
Long-term business loans | Short-term business loans | |
|---|---|---|
Term length | Typically three to 10 years; up to 25 years in some cases. | Typically one year or less; in some cases up to three years. |
Repayment schedule | Usually monthly repayment. | Usually weekly or daily repayment. |
Borrower requirements | Typically need strong annual revenue, multiple years in business and good personal credit to qualify. | Startups and business owners with bad credit may still be able to qualify. |
Funding speed | Varies based on lender; bank and SBA loans are slow to fund, but online lenders can offer capital in a few days. | Some online lenders can provide funds in as little as 24 hours. |
Best for | Purchasing equipment or real estate, renovating your business, expanding to a new location, hiring employees, refinancing existing debt. | Working capital, emergency expenses, making payroll, bridging cash flow gaps, purchasing inventory, taking advantage of a new opportunity. |
In addition, short-term business loans generally have higher APRs compared to long-term business loans — although the interest rate you receive will vary based on the lender and your business’s qualifications.
Cost of long-term loans vs. short-term loans
With a long-term business loan, you’ll have smaller monthly payments spread out over a longer period of time. With short-term business loans, you’ll usually have larger payments that you need to make more quickly — especially if your repayment schedule is daily or weekly.
Here’s an example of how the repayment costs break down:
Let’s say you have a $100,000 term loan with an APR of 10% and a term of 10 years. With this loan, you’d make monthly payments of roughly $1,322, for a total repayment of $158,581, which includes $58,581 in total interest.
The same loan paid over a two-year term, on the other hand, would require weekly payments of $1,062 ($4,248 per month), for a total repayment of $110,429, which includes $10,429 in total interest.
Although you’d be paying less in total interest on the short-term loan, the amount you’d pay each month would be more than three times higher than with the long-term loan.
Use NerdWallet’s business loan calculator to figure out your loan’s monthly payment and costs.
Compare loan options with NerdWallet’s list of small-business loans that are best for business owners. All of our recommendations are based on the lender’s market scope and track record and on the needs of business owners, as well as rates and other factors, so you can make the right financing decision.
Last updated on January 11, 2023
Frequently Asked Questions
Most long-term business loans have a maximum repayment term of 10 years. But some types of loans, like real estate or construction loans, may have longer terms. For instance, the maximum term for SBA loans used for commercial real estate purposes is 25 years.
Many lenders will require that you have strong personal credit in order to qualify for a long-term business loan. If you have bad credit, however, you may be able to access capital through an SBA microloan. These loans max out at $50,000 but are distributed through nonprofit organizations, which often have more flexible requirements and are willing to work with newer businesses or those with bad credit.