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Long-Term Business Loans: Financing for Growth

Steve NicastroApril 7, 2020

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Long-term business loans provide financing with repayment terms up to 10 years.

When your business is looking to expand or make a large investment, a long-term business loan is the way to go.

The benefits of long-term loans include more time to repay and lower monthly payments than you’ll find with short-term business loans. The challenge: It may be harder to qualify because you’ll likely need an established business and strong finances.

As with any small-business loan, always compare the costs and terms of each loan carefully.

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Our pick for

Long-term business loans up to 10 years

SmartBiz - SBA loan

SmartBiz - SBA loan

Est. APR

6.73 - 10.29%

Min. Credit Score

650

Pros

  • Competitive rates among online lenders.
  • Faster than getting an SBA loan from a bank.

Cons

  • Must have strong financials, supported by personal and business tax returns for the past 3 years.
  • Stringent rules on use of proceeds.
  • Requires business lien and personal guarantee.

Qualifications

  • Minimum credit score: 650.
  • Minimum time in business: 2 years.
  • Minimum annual revenue: $50,000.
  • No bankruptcies or foreclosures in the past 3 years.
Read full review
SmartBiz’s low-cost SBA loans work best for established businesses that want to finance an expansion or refinance debt.

Our picks for

Long-term business loans up to 5 years

Funding Circle - Online term loan

Funding Circle - Online term loan

Est. APR

12.18 - 36.00%

Min. Credit Score

660

Pros

  • Cash can be available within 3 business days.
  • Competitive rates among online lenders.
  • No minimum revenue requirement.

Cons

  • Requires business lien and personal guarantee.

Qualifications

  • Minimum credit score: 660.
  • Minimum time in business: 2 years.
  • Minimum annual revenue: None.
  • No bankruptices in the past 7 years.
Read full review
Funding Circle is an option for established businesses that are financing an expansion or refinancing debt.
Currency - Equipment financing

Currency - Equipment financing

Est. APR

6.00 - 24.00%

Min. Credit Score

585

Pros

  • Competitive rates among online lenders.

Cons

  • Prepayment penalty in some cases.
  • Requires business lien and personal guarantee.

Qualifications

  • Minimum credit score: 585.
  • Minimum time in business: 6 months.
  • Minimum annual revenue: $75,000.
  • Must have a net loss no greater than 10% over the past 12 months.
Read full review
Currency is an option for business owners looking to finance the purchase of new equipment.

Easily get real, personalized small business loan rates to compare — not just ranges or estimates.

It’s free and won’t affect your credit.

Get Started

on Fundera's website

Summary of Long-Term Business Loans: Financing for Growth

Long-term business loans up to 10 years

SmartBiz provides U.S. Small Business Administration loans of up to $350,000 with a 10-year repayment term, which can make it easier to manage monthly payments.

For example, a $100,000 loan with an 10% annual percentage rate would require monthly payments of $1,424 over 10 years, while the same loan with a five-year term would require monthly payments of $2,260. Figure out your loan’s monthly payment and costs by using NerdWallet’s business loan calculator.

Best for: Financing an expansion, renovating real estate or refinancing debt.

How to qualify: You’ll need to have been in business at least two years and earn at least $50,000 in annual revenue. You’ll also need a minimum personal credit score of 600 for loans of $30,000 to $150,000 and at least 650 for loans over $150,000.

Long-term business loans up to 5 years

If you don’t qualify for an SBA loan through SmartBiz or you want funding faster, consider Funding Circle or Currency.

Funding Circle provides loans of up to $500,000, with APRs ranging from about 12% to 36%. Higher APRs and repayment terms of up to five years means your monthly payments will be higher than with SmartBiz.

Best for: Expansion, refinancing debt.

How to qualify: You’ll need a minimum credit score of 620. You’ll also need a minimum of two years in business, but Funding Circle doesn’t require a minimum annual revenue.

Currency's lender marketplace offers loans up to $2 million for equipment financing, with APRs starting around 6%.

Best for: Equipment financing

How to qualify: Currency requires a minimum personal credit score of 585, six months in business and annual revenue of $75,000.

Compare more small-business loans

NerdWallet has created a comparison tool of the best small-business loans to meet your needs and goals. We gauged lender trustworthiness, market scope and user experience, among other factors, and arranged them by categories that include your revenue and how long you’ve been in business.

Last updated on April 7, 2020

To recap our selections...

NerdWallet's Long-Term Business Loans: Financing for Growth