Business Term Loans
A fixed amount, a fixed term, a fixed payment.
A term loan is the oldest instrument in business finance and still the cleanest. You borrow a sum, you repay it in equal installments over one to five years, and the payment never changes. A restaurateur in Austin who takes $200,000 to open a second kitchen knows on the day she signs exactly what leaves her account on the first of every month until 2031. That certainty is what she is buying.
Enrichment Capital arranges term loans through banks, credit unions and non-bank lenders. The craft is in the placement. A file that a bank would decline in a week may be exactly what a non-bank lender wants, at a cost the owner can live with. We read the statements first, say which lenders will consider the business and at roughly what price, and send the file to two or three of them. Not to forty.
How it works
- 1
One application, three months of business bank statements. Above $150,000, lenders also ask for the latest tax return and a year to date profit and loss.
- 2
Offers come back on a single page: amount, rate, term, monthly payment, total repayment, origination fee. Nothing is signed until you have seen that page.
- 3
Funds are wired to the business account. Non-bank lenders wire within two to seven business days of signing; banks take longer.
- 4
Banks and SBA style lenders collect monthly. Some non-bank lenders collect weekly. The offer page says which.
Where it fits
- ●An expansion with a known price tag: a second location, a renovation, a season's inventory bought in advance.
- ●Buying out a partner, or buying a competitor.
- ●Consolidating several expensive short term positions into one longer and cheaper payment.
- ●Businesses two years old or more, with steady deposits and an owner whose credit sits in the mid 600s or higher.
Where it does not
- ●A shortfall this week. A term loan takes days to weeks; a line of credit or a revenue-based advance is faster.
- ●Businesses under a year old or with lumpy deposits. Most term lenders decline them, and we would rather say so before the application than after.
- ●Owners who expect to repay early. Some term loans charge for it. We flag the ones that do.
What it typically costs
Bank and SBA style term loans in our network carry annual rates from the high single digits to the mid teens. Non-bank term loans for younger or lower credit businesses run from the high teens into the thirties.
Origination fees of 1 to 5 percent are the norm and come out of the funds. We state the fee in dollars, not percent, so it can be compared.
Enrichment Capital charges you nothing. Our funding partners pay us when a deal closes.
Ranges describe offers commonly seen through our network and are not a quote. Every offer we present shows its own amount, cost, term, payment schedule and total repayment before you sign.
Who usually qualifies
- ●Two years in business for most lenders. A few accept one year with strong revenue.
- ●Annual revenue of $250,000 or more.
- ●Owner credit of 640 or above for non-bank lenders, 680 or above for banks.
- ●No open bankruptcy. No more than two existing short term positions.
Questions owners ask
How much can I borrow with a business term loan?+
Through our network, $25,000 to $5,000,000. Non-bank lenders approve amounts of roughly 10 to 25 percent of annual revenue. Banks go higher when there is collateral.
How long does a term loan take to fund?+
Two to five business days after signing with a non-bank lender. Two to six weeks with a bank, because bank underwriting is slower and more thorough.
Is collateral required?+
Not always. Many non-bank term loans are unsecured, backed by a personal guarantee and a general lien on business assets. Bank loans above $250,000 generally want specific collateral.
Can I pay a term loan off early?+
With most lenders, yes. Some charge a prepayment fee or hold you to the full interest; others discount the remaining interest. The offer page states which applies.
Will applying affect my credit?+
Pre-qualification is a soft inquiry. A hard inquiry happens only if you accept an offer from a lender that requires one, and you will know before that.
Begin with a conversation
One application, a few minutes, your last three months of statements. A member of our team reads the file personally and tells you where you stand, usually within one business day.
Apply for financing