A fixed amount up front, repaid on a set schedule over a defined term. The most predictable way to fund a project whose cost you already know.
You receive the full amount at closing and repay it in regular installments over an agreed term. The payment does not change with your sales, which is exactly the point: it is a number you can build a budget around.
Interest accrues on the outstanding balance, so paying ahead of schedule generally reduces what you pay in total — the opposite of a factor-rate product, where the cost is fixed at the outset.
Term loans fit one-time, quantifiable investments — the kind where you can name the amount and expect a return over months or years rather than days.
Longer terms and larger amounts mean underwriting looks harder at trend than a short-term product does. Expect us to review time in business, revenue consistency across recent months, existing debt obligations, and the specific use of funds. Connecting your bank read-only or uploading recent statements covers most of it.
Yes, and because interest accrues on the outstanding balance, paying early generally reduces total cost. Confirm whether your agreement includes a prepayment provision.
A term loan has a fixed payment and a maturity date, and its cost is interest that accrues over time. Revenue-based financing has no fixed payment — you deliver a percentage of sales — and its cost is a factor rate set at the outset.
Most applications get a decision in under 30 minutes. Larger term loans may take longer if underwriting requests additional documentation.
