What is a Business Term Loan?
A business term loan is a reliable financing option designed to support your business growth. Whether you’re looking to purchase or refinance real estate, invest in essential equipment, or boost your working capital, a term loan provides the upfront funds you need, repaid in equal monthly installments over a set period. Repayment is typically sourced from your business’s cash flow, and loans are generally secured with collateral. Terms range from 3 to 20 years, depending on the purpose of the loan and the useful life of the collateral. For example, loans secured by real estate often carry terms of 15 to 20 years.
Our experienced loan officers are here to help you determine if a business term loan is the right fit for your goals. In many cases, an SBA 504 loan through State Bank of Southern Utah may offer the most effective way to finance your project.
Benefits of a Business Term Loan
- Purchase equipment or vehicles to enhance operations
- Stop paying rent, buy your own facility
- Acquire real estate to support business expansion
- Transition to long-term financing after completing a State Bank-financed construction project