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Best Long-Term Business Loans of May 2024

By Randa Kriss
Last updated on May 13, 2024
Edited bySally Lauckner
✅Fact checked and reviewed

⏰ Estimated read time: 10 minutes

Long-term business loans provide financing for large expenditures with typical repayment terms from three to 10 years, and in some cases as long as 25 years.

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Long-term business loans can typically be repaid over three to 10 years, and in some cases as long as 25 years. These small-business loans can be a good choice for companies seeking to spread out the financial impact of large investments, like opening a new location or buying expensive equipment.
A long repayment term may result in smaller monthly payments but also a larger total repayment amount 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?

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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 8 long-term business loans

LenderNerdWallet Rating▼Max loan amount▼Min. credit score▼Next steps

SBA 7(a) loan

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Best for Long-term business loans up to 25 years

$5,000,000650

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Bank of America Business Advantage Unsecured Term Loan

5.0/5

Best for Long-term business bank loans

Undisclosed700

Funding Circle - Online term loan

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4.5/5

Best for Fast long-term business loans

$500,000660

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SBA CDC/504 loan

Best for Long-term business loans for real estate

$5,000,000680

Accion Opportunity Fund - Small Business Working Capital Loan

5.0/5

Best for Long-term business loans for startups

$250,000570

SBA Microloan

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Best for Long-term business loans for bad credit

$50,000620

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JR Capital Equipment Financing

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4.0/5

Best for Long-term equipment loans

$10,000,000620

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PNC Small Business Vehicle Finance Loan

3.5/5

Best for Long-term business loans for business vehicles

$250,000700

Here are 8 long-term business loans

Best for Long-term business loans up to 25 years

U.S. Small Business Administration

Max Amount

$5,000,000

Min. Credit Score

650

Best for Long-term business bank loans

Bank of America

Max Amount

Undisclosed

Min. Credit Score

700

Best for Fast long-term business loans

Funding Circle

Max Amount

$500,000

Min. Credit Score

660

Best for Long-term business loans for real estate

U.S. Small Business Administration

Max Amount

$5,000,000

Min. Credit Score

680

Best for Long-term business loans for startups

Accion

Max Amount

$250,000

Min. Credit Score

570

Best for Long-term business loans for bad credit

U.S. Small Business Administration

Max Amount

$50,000

Min. Credit Score

620

Best for Long-term equipment loans

JR Capital

Max Amount

$10,000,000

Min. Credit Score

620

Best for Long-term business loans for business vehicles

PNC Bank

Max Amount

$250,000

Min. Credit Score

700

I'M INTERESTED IN:

Our pick for

Long-term business loans up to 25 years

SBA 7(a) loans typically offer repayment periods of 10 years when used for working capital and equipment, but can go up to 25 years when a portion of the loan is used for property improvements or purchases.

SBA 7(a) loan

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Max Loan Amount
$5,000,000
Min. credit score
650
Est. APR
11.50-15.00%
7(a) loans are issued by private lenders and backed by the SBA. They offer long repayment terms and low interest rates.
Lowest interest rate

Max loan

$5,000,000

Min. Credit score

650

Apr range

11.50-15.00%

7(a) loans are issued by private lenders and backed by the SBA. They offer long repayment terms and low interest rates.

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Our pick for

Long-term business bank loans

Bank of America’s unsecured business loans have terms up to five years with no collateral requirements, but you will need at least two years in business and annual revenue of $100,000 to qualify.

Bank of America Business Advantage Unsecured Term Loan

5.0
NerdWallet rating 
Max Loan Amount
Undisclosed
Min. credit score
700
Bank of America’s term loan offers competitive interest rates and flexible repayment terms — with no collateral required.
5.0
NerdWallet rating 

Max loan

Undisclosed

Min. Credit score

700

Bank of America’s term loan offers competitive interest rates and flexible repayment terms — with no collateral required.

Our pick for

Fast long-term business loans

Business term loans offered by Funding Circle can be used for almost any business purpose including purchasing inventory, covering payroll or financing expansion costs. You can receive funds in as little as two days.

Funding Circle - Online term loan

4.5
NerdWallet rating 

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Max Loan Amount
$500,000
Min. credit score
660
Est. APR
15.22-45.00%
Funding Circle is an option for established businesses that are financing an expansion or refinancing debt.
May fund quickly
4.5
NerdWallet rating 

Max loan

$500,000

Min. Credit score

660

Apr range

15.22-45.00%

Funding Circle is an option for established businesses that are financing an expansion or refinancing debt.

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Our pick for

Long-term business loans for real estate

SBA 504 loans, available through community-based partners, are designed to finance large fixed assets including the purchase of real estate and buildings as well as improvements to existing facilities.

SBA CDC/504 loan

Max Loan Amount
$5,000,000
Min. credit score
680
Est. APR
5.00-7.00%
SBA 504 loans are designed to promote business growth and job creation through the purchase or upgrade of major fixed assets.

Max loan

$5,000,000

Min. Credit score

680

Apr range

5.00-7.00%

SBA 504 loans are designed to promote business growth and job creation through the purchase or upgrade of major fixed assets.

Our pick for

Long-term business loans for startups

Accion Opportunity Fund offers business loans with terms up to five years. You may be able to qualify with just one year in business.

Accion Opportunity Fund - Small Business Working Capital Loan

5.0
NerdWallet rating 
Max Loan Amount
$250,000
Min. credit score
570
Est. APR
8.49-24.99%
Accion is a good option for businesses that haven't been able to secure traditional financing. The lender targets its funding efforts toward minority, women and low-to-moderate-income entrepreneurs.
5.0
NerdWallet rating 

Max loan

$250,000

Min. Credit score

570

Apr range

8.49-24.99%

Accion is a good option for businesses that haven't been able to secure traditional financing. The lender targets its funding efforts toward minority, women and low-to-moderate-income entrepreneurs.

Our pick for

Long-term business loans for bad credit

SBA microloans can offer more flexible qualifications for borrowers because each intermediary lender determines its own lending and credit requirements.

SBA Microloan

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Max Loan Amount
$50,000
Min. credit score
620
Est. APR
8.00-13.00%
SBA microloans are small-sized loans funded by the U.S. Small Business Administration and issued through approved intermediaries, typically nonprofit and community lenders.

Max loan

$50,000

Min. Credit score

620

Apr range

8.00-13.00%

SBA microloans are small-sized loans funded by the U.S. Small Business Administration and issued through approved intermediaries, typically nonprofit and community lenders.

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Our pick for

Long-term equipment loans

With repayment terms up to six years, JR Capital’s equipment loan allows established businesses purchase new and used equipment and machinery.

JR Capital Equipment Financing

4.0
NerdWallet rating 

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Max Loan Amount
$10,000,000
Min. credit score
620
Est. APR
6.99-18.00%
JR Capital provides fast equipment loans and leases, specializing in trucks, trailers and heavy equipment.
4.0
NerdWallet rating 

Max loan

$10,000,000

Min. Credit score

620

Apr range

6.99-18.00%

JR Capital provides fast equipment loans and leases, specializing in trucks, trailers and heavy equipment.

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Our pick for

Long-term business loans for business vehicles

PNC offers business vehicle loans with fixed interest rates and loan terms up to six years. Loan payments are taken out monthly from your business checking account.

PNC Small Business Vehicle Finance Loan

3.5
NerdWallet rating 
Max Loan Amount
$250,000
Min. credit score
700
This PNC auto loan is a good option for established businesses who need to purchase new or used vehicles for everyday use.
3.5
NerdWallet rating 

Max loan

$250,000

Min. Credit score

700

This PNC auto loan is a good option for established businesses who need to purchase new or used vehicles for everyday use.

How Much Do You Need?

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What is a long-term business loan?

A long-term business loan is one with a lengthy repayment period, often defined in years instead of months. The repayment period typically ranges from three to 10 years; although, some loans, like SBA loans, can have even longer terms of up to 25 years.
Long-term small-business loans can be a good option for purchasing real estate, financing equipment, purchasing company vehicles, renovating or expanding your business, hiring new employees, refinancing existing debt and more.

How do long-term business loans work?

Long-term business loans provide borrowers with lump sums of capital. They 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.
Depending on the loan product, you may have a choice between a fixed or variable interest rate. Long-term business loans are offered by banks, online lenders and credit unions, among other types of lenders.

Long-term business loans vs. short-term business loans

There is no set industry standard for what’s considered a long-term or short-term business loan. The dividing line between them is often a three-year repayment period, although 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.

Types of long-term business loans

Here are some of the most common types of long-term business loans:

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. To qualify for these long-term business loans, you work with banks and other lenders, approved by the U.S. Small Business Administration. 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).You may also 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 — but they are only available in amounts up to $50,000, which may not be ideal for funding larger projects.
How to qualify: Qualification requirements for SBA microloans will vary based on the lender. In general, however, you may be able to qualify with less than two years in business and a credit score of 620 or higher. Some lenders may accept lower credit scores as well.
» MORE: Compare the best SBA and nonprofit microlenders

Bank and credit union business loans

Traditional lenders provide long-term business loans, often with repayment terms between five to seven years. Bank business loans used to purchase commercial real estate may have longer terms of up to 25 years, in some cases. 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 business 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 and credit unions 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 business loans from online lenders, such as Funding Circle. This online lender offers repayment terms of up to 84 months.
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 business lenders will require a personal guarantee, but may not require that you put up physical collateral on the loan.

Pros and cons of long-term business loans

Pros

May have low interest rates.

Fixed monthly payments over a longer period of time make cash flow easier to manage.

Can be used for a variety of business purposes.

Cons

Can be difficult to qualify; strong credit and revenue typically required.

May be slow to fund, with extensive documentation needed.

Often require physical collateral.

How to get a long-term business loan

You can follow these steps to get long-term financing for your small business.

1. Evaluate your financing needs

You’ll want to determine how much funding you need and why you need it. This will help you orient your loan search in the right direction. If you’re looking to purchase a truck for your business, for example, dedicated semi-truck financing might be the best option.

2. Review your qualifications

To qualify for a long-term business loan, you may need to meet strict eligibility requirements. Many lenders want to see at least two years in business, good credit and strong finances. You may also need to provide collateral.
If you have a lower credit score or less than one year in business, you might consider alternative options:

3. Compare business lenders

Once you have an understanding of your financing needs and qualifications, you can start researching and comparing lenders. The best small-business lender will offer the product you need, has requirements you can meet and charges affordable interest rates.

4. Gather your documentation and apply

The application process will vary based on your lender and loan type. Banks and credit unions may ask for extensive documentation and require you to visit a branch location to apply. Online lenders, on the other hand, typically offer streamlined applications with fewer documentation requirements.
In general, you may need to provide:
  • Basic information about you and your business.
  • Personal and business bank statements.
  • Personal and business tax returns.
  • Business financial statements.
  • A description of your collateral, if necessary.

5. Sign your loan agreement and get funds

Once your application is approved, your lender will send you a business loan agreement to review and sign. You’ll want to read through the agreement carefully and ensure you understand all of the terms and conditions. If you have any questions or concerns, you should reach out to your lender directly for clarification.
After you’ve signed the agreement, your lender will typically transfer your funds directly into your business bank account. This process may take a few days, depending on your bank.
» MORE: How to apply for and get a business loan

Frequently asked questions

Last updated on May 13, 2024

Methodology

NerdWallet’s review process evaluates and rates small-business loan products from traditional banks and online lenders. We collect over 30 data points on each lender using company websites and public documents. We may also go through a lender’s initial application flow and reach out to company representatives. NerdWallet writers and editors conduct a full fact check and update annually, but also make updates throughout the year as necessary.
Our star ratings award points to lenders that offer small-business friendly features, including:
- Transparency of rates and terms. - Flexible payment options. - Fast funding times. - Accessible customer service. - Reporting of payments to business credit bureaus. - Responsible lending practices.
We weigh these factors based on our assessment of which are the most important to small-business owners and how meaningfully they impact borrowers’ experiences.
NerdWallet does not receive compensation for our star ratings. Read more about our ratings methodology for small-business loans and our editorial guidelines.

Wondering if you qualify?

It’s possible to get a business loan even if you have bad credit. Bad-credit business loans are available from alternative sources, like online or nonprofit lenders.

Learn more
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