A business term loan is a one-time infusion of capital that you pay back over a set repayment term.
Business term loans are used for long-term investments, including equipment, debt refinancing and commercial real estate.
You might also fund office renovation projects, purchase inventory, hire employees and more.
There are unsecured business term loans and secured business term loans. With unsecured loans, you’re not required to offer collateral to obtain the loan, though you may have to provide a personal guarantee. This means that if your business can’t repay the loan, you’ll be personally responsible. Also, you’ll likely have a higher interest rate and shorter repayment window than you’d find with a secured loan.