A business term loan can provide financing to help owners expand their business in a variety of ways. Real estate can be purchased or refinanced, needed equipment can be purchased, or a one-time increase in working capital can be acquired. Funds are disbursed up front and are paid back over a certain number of years in equal, monthly installments. The source of repayment on term loans is the cash flow generated from the borrower’s business. Term loans are generally secured with collateral and the term on the note is anywhere from 3-20 years and matches the useful life of the collateral and the purpose of the loan. Loans secured with real estate typically have a term of 15-20 years. Talk to one of our loan officers to see if a business term loan might be right for you.
In many instances, an SBA 504 loan through State Bank of Southern Utah may be the best way to finance your project.
Benefits of a Business Term Loan