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Long-Term Business Loans: Best Options of March 2024

By Randa Kriss
Last updated on March 15, 2024
Edited bySally Lauckner
Fact checked and reviewed

⏰ Estimated read time: 7 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. 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.
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 7 long-term business loans

LenderNerdWallet RatingMax loan amountMin. credit scoreNext 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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SBA CDC/504 loan

Best for Long-term business loan for real estate

$5,000,000680

Funding Circle - Online term loan

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4.5/5

Best for Long-term business loans up to 5 years

$500,000660

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SBA Microloan

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Best for Long-term business loans for bad credit

$50,000620

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Triton Capital - Equipment financing

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4.0/5

Best for Long-term equipment loan

$250,000575

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Bank of America Business Advantage Unsecured Term Loan

5.0/5

Best for Long-term bank loan

Undisclosed700

PNC Small Business Vehicle Finance Loan

3.5/5

Best for Long-term business loan for business vehicles

$250,000700

Here are 7 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 loan for real estate

U.S. Small Business Administration

Max Amount

$5,000,000

Min. Credit Score

680

Best for Long-term business loans up to 5 years

Funding Circle

Max Amount

$500,000

Min. Credit Score

660

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 loan

Triton Capital

Max Amount

$250,000

Min. Credit Score

575

Best for Long-term bank loan

Bank of America

Max Amount

Undisclosed

Min. Credit Score

700

Best for Long-term business loan 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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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 loan 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

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 up to 5 years

Business term loans offered by Funding Circle can be used for almost any business purpose including purchasing inventory, covering payroll or financing expansion costs.

Funding Circle - Online term loan

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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

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 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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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 loan

With repayment terms up to five years, Triton Capital’s equipment loan lets established and startup businesses purchase new and used equipment and technology.

Triton Capital - Equipment financing

4.0
NerdWallet rating 

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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

575

Apr range

5.99-34.99%

Triton Capital offers fast equipment loans up to $250,000 for businesses in a range of industries.

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Our pick for

Long-term bank loan

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

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

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

Long-term business loan 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

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

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 provides you with a lump-sum of money that is repaid over a set period of time — often defined in years instead of months. The repayment period is typically from three to 10 years; although, some loans, like SBA loans, can have even longer terms of up to 25 years.
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, credit unions and other types of lenders.

How 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.
Long-term small-business loans can make sense for purchasing real estate, financing equipment, purchasing company vehicles, renovating or expanding your business, hiring new employees, refinancing existing debt and more.

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 of up to $5 million, 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).
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, often with repayment terms up to between five to seven years. Bank loans used to purchase commercial real estate may have longer terms of up to 20 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 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. 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 lenders will require a personal guarantee, but won’t require that you put up physical collateral on the loan.

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.

Cost of long-term loans vs. short-term loans

Long-term business loans typically offer smaller monthly payments spread out over a longer period of time. In contrast, short-term business loans generally have larger monthly repayment amounts that you need to make over a short period of time. Also, short-term loans often require repayment on a daily or weekly schedule.
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 approximately $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, with a weekly repayment structure (more common with shorter-term loans), would require a weekly payment of $1,062. That would equal roughly $4,602 each month on average. The total repayment for this loan would be $110,429, which includes $10,429 in total interest.
Although you’d be paying significantly 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.

Find the right business loan

The best business loan is generally the one with the lowest rates and most ideal terms. But other factors — like time to fund and your business’s qualifications — can help determine which option you should choose. NerdWallet recommends comparing small-business loans to find the right fit for your business.
Last updated on March 15, 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 and 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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