Understanding business term loans and how they can help your business
There comes a time when every business needs to consider getting additional funding to grow their business. At Levr.ai we believe when a business is in need of extra financial wiggle room it is a great problem to have!
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We understand that getting business loans is tough—the process is outdated, clunky and frankly at times it can be stressful. Making the business loan process better (in every aspect) is a problem we’re absolutely in love with and why we created Levr.ai.
As a business there are a ton of great loan options when it comes to leveraging and securing financial capital to grow your business and reach your goals. In this post we’re going to focus on one of the most popular and accessible loans for small business owners.
Comment CryptoSportsbooks explique l’essor du Bitcoin chez les bookmakers français
Depuis le début des années 2020, le paysage des paris sportifs en France a connu une transformation profonde, portée en grande partie par l’adoption croissante des cryptomonnaies, et du Bitcoin en particulier. Ce phénomène ne relève pas d’un simple effet de mode technologique : il répond à des besoins concrets des parieurs, qu’il s’agisse de la rapidité des transactions, de la confidentialité des paiements ou de l’accès à des marchés que les opérateurs traditionnels peinent à couvrir. Pour comprendre comment cette dynamique s’est installée durablement dans l’écosystème des bookmakers français, il est utile d’examiner à la fois les facteurs réglementaires, les comportements des utilisateurs et les analyses produites par des plateformes spécialisées dans ce secteur.
Le cadre réglementaire français et ses limites face aux cryptomonnaies
En France, les paris sportifs en ligne sont encadrés par l’Autorité Nationale des Jeux (ANJ), qui a succédé à l’ARJEL en 2020. Cette autorité délivre des agréments aux opérateurs qui souhaitent proposer leurs services légalement sur le territoire national. Or, le cadre réglementaire actuel n’intègre pas explicitement les cryptomonnaies comme moyen de paiement reconnu pour les transactions liées aux jeux d’argent. Cette lacune crée une situation paradoxale : les opérateurs agréés par l’ANJ ne peuvent techniquement pas accepter le Bitcoin sans risquer de se retrouver dans une zone grise juridique, tandis que les plateformes non agréées, souvent établies à Malte, à Curaçao ou à Gibraltar, proposent librement des dépôts et retraits en Bitcoin, Ethereum ou Litecoin.
Cette situation a conduit un nombre croissant de parieurs français à se tourner vers des bookmakers étrangers acceptant les cryptomonnaies. Selon plusieurs estimations issues du secteur, entre 15 et 20 % des parieurs français actifs auraient utilisé au moins une fois un opérateur crypto-compatible entre 2021 et 2023. Ce chiffre, bien que difficile à vérifier de manière indépendante en raison de l’absence de statistiques officielles sur les plateformes non agréées, est cohérent avec les tendances observées dans d’autres marchés européens comparables, comme la Belgique ou les Pays-Bas. La réglementation française, conçue à une époque où le Bitcoin n’était qu’un objet de curiosité pour les initiés, n’a pas anticipé la vitesse à laquelle cette technologie allait pénétrer les habitudes de consommation des joueurs.
La directive européenne sur les services de paiement (DSP2), entrée en vigueur en 2018, a par ailleurs complexifié les transactions bancaires classiques pour les sites de jeux en ligne, notamment en imposant une authentification forte. Paradoxalement, cette contrainte supplémentaire a rendu les paiements en cryptomonnaies plus attractifs pour certains utilisateurs, qui y voient une alternative moins bureaucratique, même si elle comporte ses propres risques en termes de volatilité et de sécurité des fonds.
Les raisons concrètes de l’adoption du Bitcoin dans les paris sportifs
Au-delà du contexte réglementaire, l’essor du Bitcoin chez les bookmakers s’explique par des avantages pratiques que les parieurs ont rapidement identifiés. Le premier d’entre eux est la rapidité des retraits. Là où un virement bancaire classique peut prendre deux à cinq jours ouvrés, une transaction en Bitcoin est généralement confirmée en moins d’une heure, parfois en quelques minutes selon la congestion du réseau et les frais de transaction choisis. Pour un parieur qui vient de remporter un gain important sur un match de Ligue 1 ou de Champions League, cette différence est loin d’être anodine.
Le deuxième facteur est la discrétion relative offerte par les transactions en cryptomonnaies. Si le Bitcoin n’est pas anonyme au sens strict — toutes les transactions sont enregistrées sur la blockchain publique — il offre un niveau de pseudonymat qui convient à de nombreux utilisateurs soucieux de ne pas voir leurs habitudes de jeu apparaître explicitement dans leurs relevés bancaires. Dans un pays comme la France, où la stigmatisation sociale autour des paris sportifs reste présente dans certains milieux, cet aspect n’est pas négligeable.
Troisièmement, le Bitcoin permet d’accéder à des bookmakers qui proposent des limites de mise plus élevées que celles autorisées par les opérateurs agréés ANJ. En France, les opérateurs agréés sont soumis à des plafonds et à des règles de jeu responsable qui, bien que nécessaires d’un point de vue social, peuvent sembler contraignantes pour les parieurs expérimentés qui gèrent leur bankroll de manière professionnelle. Les plateformes crypto-compatibles, souvent régulées dans des juridictions moins strictes, offrent davantage de flexibilité sur ce point.
C’est précisément dans ce contexte que des ressources spécialisées comme celles que l’on peut visiter CryptoSportsbooks ont pris de l’importance : elles permettent aux parieurs francophones de s’orienter dans un marché fragmenté, en comparant les conditions de dépôt, les bonus disponibles en cryptomonnaies et la fiabilité des opérateurs selon des critères objectifs, sans se limiter aux seuls bookmakers agréés sur le sol français.
Enfin, un quatrième élément explique l’attrait du Bitcoin dans les paris sportifs : la possibilité de parier directement dans l’unité de compte de la cryptomonnaie. Certains parieurs qui détiennent des Bitcoin comme investissement à long terme préfèrent parier en satoshis — la plus petite unité du Bitcoin — plutôt que de convertir leurs actifs en euros, évitant ainsi un événement fiscal potentiellement taxable en France, où la cession de cryptomonnaies est soumise à une flat tax de 30 % depuis la loi de finances 2019.
Comment les analyses de plateformes spécialisées éclairent les tendances du marché
La montée en puissance des paris sportifs en Bitcoin n’a pas échappé aux observateurs du secteur. Des plateformes dédiées à l’analyse de ce marché de niche ont commencé à produire des données et des comparatifs qui font aujourd’hui référence dans la communauté des parieurs crypto. Ces ressources jouent un rôle similaire à celui qu’ont joué les comparateurs de bookmakers traditionnels dans les années 2010, lorsque des sites comme Oddschecker ou Betbrain ont contribué à structurer le marché européen des paris en ligne.
CryptoSportsbooks, en tant que plateforme d’information spécialisée, a notamment mis en évidence plusieurs tendances structurelles dans ses analyses du marché francophone. Parmi celles-ci, on note l’augmentation du nombre d’opérateurs proposant des bonus exclusivement en cryptomonnaies, la généralisation des dépôts en stablecoins comme l’USDT (Tether) pour contourner la volatilité du Bitcoin, et l’émergence de bookmakers décentralisés fonctionnant sur des protocoles blockchain comme Ethereum ou Polygon, qui permettent des paris sans intermédiaire centralisé.
Ces analyses révèlent également une segmentation claire du marché : d’un côté, des parieurs occasionnels qui utilisent le Bitcoin principalement pour sa commodité de paiement, sans nécessairement s’intéresser à la technologie sous-jacente ; de l’autre, des parieurs plus aguerris, souvent également investisseurs en cryptomonnaies, qui voient dans les paris sportifs crypto une extension naturelle de leur exposition aux actifs numériques. Cette dualité de profils a des implications importantes pour les opérateurs qui cherchent à adapter leur offre.
Sur le plan géographique, les données disponibles suggèrent que l’adoption est plus forte dans les grandes agglomérations françaises — Paris, Lyon, Marseille — où la population est statistiquement plus jeune et plus familiarisée avec les technologies numériques. Les régions rurales et les tranches d’âge supérieures à 45 ans restent plus attachées aux méthodes de paiement traditionnelles, bien que cette tendance évolue progressivement avec la démocratisation des portefeuilles numériques et des applications d’achat de Bitcoin comme Coinbase, Binance ou la néo-banque française Lydia, qui a intégré des fonctionnalités crypto dans son application.
Un autre aspect que les plateformes d’analyse ont contribué à documenter est l’évolution des offres de bienvenue proposées par les bookmakers crypto. Alors que les bonus traditionnels sont souvent exprimés en euros avec des conditions de mise standardisées, les bonus en cryptomonnaies peuvent prendre des formes plus variées : cashback en Bitcoin sur les paris perdants, multiplicateurs de gains sur certains marchés, ou encore accès à des tournois exclusifs réservés aux utilisateurs crypto. Cette diversification de l’offre promotionnelle constitue un levier d’acquisition important pour les opérateurs qui cherchent à capter ce segment de marché.
Perspectives d’évolution et enjeux pour les bookmakers français
La question qui se pose désormais est de savoir si le cadre réglementaire français va évoluer pour intégrer les cryptomonnaies, ou si le fossé entre les opérateurs agréés ANJ et les plateformes crypto-compatibles va continuer à se creuser. Plusieurs indices laissent penser qu’une évolution est inévitable, même si son calendrier reste incertain.
Au niveau européen, le règlement MiCA (Markets in Crypto-Assets), adopté en 2023 et dont l’application progressive s’étend jusqu’en 2025, établit pour la première fois un cadre harmonisé pour les actifs numériques au sein de l’Union européenne. Si ce règlement ne traite pas directement des jeux d’argent, il crée les conditions d’une meilleure intégration des cryptomonnaies dans les systèmes financiers européens, ce qui pourrait faciliter leur acceptation par les régulateurs nationaux du secteur des jeux, dont l’ANJ.
Par ailleurs, plusieurs grands opérateurs de paris sportifs agréés en France ont commencé à explorer discrètement la possibilité d’intégrer des solutions de paiement en cryptomonnaies, notamment via des prestataires de services de paiement spécialisés qui convertissent automatiquement les dépôts en Bitcoin en euros, évitant ainsi à l’opérateur d’avoir à gérer directement des actifs numériques. Cette approche dite de “crypto-to-fiat” permettrait de contourner les obstacles réglementaires actuels tout en répondant à la demande des parieurs.
Des acteurs comme Betclic ou Unibet, qui opèrent à la fois sur le marché français agréé et sur des marchés internationaux moins contraignants, sont particulièrement bien positionnés pour adopter ce type de solution hybride. La pression concurrentielle exercée par les plateformes crypto-compatibles non agréées pourrait accélérer cette transition, d’autant que l’ANJ elle-même a reconnu, dans son rapport annuel 2022, que la question des cryptomonnaies dans les jeux d’argent constituait un “défi réglementaire émergent” nécessitant une réflexion approfondie.
Du côté des parieurs, les comportements continuent d’évoluer rapidement. La génération des 18-30 ans, qui constitue le principal vivier de nouveaux parieurs sportifs, est également la plus familiarisée avec les cryptomonnaies : selon une étude de l’Autorité des marchés financiers (AMF) publiée en 2022, 9 % des Français avaient déjà investi dans des cryptoactifs, avec une surreprésentation marquée chez les hommes de moins de 35 ans. Ce chevauchement entre la démographie des parieurs sportifs et celle des détenteurs de cryptomonnaies est structurellement favorable à l’adoption du Bitcoin dans les paris sportifs sur le long terme.
Les enjeux de sécurité ne doivent cependant pas être sous-estimés. Les plateformes de paris en cryptomonnaies non régulées présentent des risques spécifiques : absence de protection des fonds en cas de faillite de l’opérateur, risques de manipulation des cotes sur des marchés peu liquides, et exposition à des arnaques sophistiquées qui exploitent la complexité technique des portefeuilles numériques. La sensibilisation des parieurs à ces risques est une responsabilité partagée entre les régulateurs, les associations de joueurs et les plateformes d’information indépendantes qui couvrent ce secteur.
En définitive, l’essor du Bitcoin chez les bookmakers français n’est pas un phénomène isolé : il s’inscrit dans une transformation plus large des habitudes de paiement et de consommation numérique qui touche l’ensemble du secteur des services financiers. La capacité des opérateurs agréés et des régulateurs à s’adapter à cette réalité déterminera dans quelle mesure le marché français des paris sportifs restera compétitif face à des acteurs internationaux qui ont déjà intégré les cryptomonnaies comme composante centrale de leur modèle économique. Les prochaines années seront décisives pour savoir si la France choisit d’encadrer cette évolution ou de la laisser se développer en dehors de son périmètre réglementaire.
What are business term loans?
A business term loan, or sometimes referred to as term loan, is one of the simplest forms of borrowing money for your business.
A business term loan is a lump sum of money borrowed from a lender with agreed upon repayment terms over a specified period of time. Lenders usually provide flexible payment schedules—weekly, bi-weekly, monthly, or bi-monthly—that can align to your specific cash flow cycles.
Business term loans are extended for periods of 1 to 10 years, while there are instances when a lender is willing to lend money for longer periods of time. Business term loans tend to be borrowed over a shorter time frame compared to specialized financing like SBA loans, which can extend up to 25 years.
Business term loans are used for specific business objectives like real estate (property purchase, renovations etc), purchase of equipment to make consumer packaged goods, or even working capital. Due to the straightforward application of these funds, it’s easy to agree on clear and upfront repayment timelines.
Understanding short-term vs long-term business loans
Understanding the difference between short-term and long-term business loans is critical for choosing the right financing for your needs.
Feature | Short-Term Business Loans | Long-Term Business Loans |
Repayment Period | 3 to 24 months | 3 to 25 years |
Typical Loan Amount | $5,000 to $250,000 | $50,000 to $5,000,000 plus |
Interest Rates | Higher 10% to 99% APR | Lower 6.3% to 15% APR |
Monthly Payments | Higher payments, less total interest | Lower payments, more total interest |
Approval Speed | 1 to 3 days | 1 to 8 weeks |
Credit Requirements | More flexible 500 plus credit score | Stricter 680-plus credit score |
Best Use Cases | Cash flow gaps, inventory, and emergency expenses | Equipment purchases, real estate, and major expansions |
Payment Frequency | Daily, weekly, or biweekly | Monthly |
Collateral | Often unsecured | Usually requires collateral |
What are the benefits and advantages of a business term loan?
Business term loans offer a ton of benefits to small businesses and lenders. They’re typically one of the easiest kinds of loans to secure.
Speed and accessibility
Business term loans offer a ton of benefits to small businesses and lenders. They’re typically one of the easiest kinds of loans to secure.
Building business credit
Business term loans, especially for newer businesses are a great tool for business owners to build business credit. Too often business owners use their personal credit lines and credit history to secure financing that is used for their business. Having a business term loan in your business name allows for quick and purposeful business credit building and improving your company’s credit score. This separation of business and personal credit becomes increasingly valuable as your company grows and needs access to larger amounts of capital.
Predictable cash flow management
One of the best benefits of a business term loan is that the payments are predictable and the same amount each time, as they’re usually extended on a fixed interest rate. This helps businesses when it comes to managing cash-flow and monthly operating expenses. Knowing how much you need to pay to secure working capital makes it easy to manage business finances throughout the life of the loan. You can budget accurately, forecast future cash positions, and avoid the uncertainty that comes with variable-rate financing.
Capturing growth opportunities
Business term loans are great for emergencies, and sometimes those can be growth opportunities. As your small business scales up over time, you also build an excellent reputation for product quality and service. Business term loans can assist businesses to realize revenue growth opportunities to fulfill a bigger purchase order or meet the needs of a new client and seal the deal before work can start and be delivered at a profit. When a large customer places an order that exceeds your current production capacity, a term loan can provide the working capital to fulfill that order rather than turning away business.
Maintaining ownership and control
Given there are a number of options available to businesses to raise financial capital, business term loans are one of the few that allow businesses and business owners to maintain control.
Often when companies are standing at the intersection of growth – they seek out funding from investors. To bring investors into the mix business owners and founders typically will need to relinquish ownership and decision making authority. You worked hard to build your business, and so business term loans allow for you to get the funds you may need without losing any control of your business. The cost is purely financial—interest payments—rather than giving up equity or board seats.
Tax advantages
The interest you pay on a business term loan is typically tax-deductible as a business expense, reducing your overall tax burden. Unlike equity financing where you give up ownership permanently, debt financing provides a one-time capital injection with tax benefits that lower the effective cost of borrowing. This makes the true cost of a term loan lower than the stated interest rate when you factor in tax savings.
Understanding the tradeoffs
While business term loans offer significant advantages, they also come with considerations you should weigh carefully. Term loans create a fixed obligation—you must make payments regardless of business performance, unlike revenue-based financing that adjusts with your income. Many lenders require collateral, putting your business or personal assets at risk if you cannot repay. The qualification requirements can be strict, particularly for traditional bank loans, requiring strong credit scores, established operating history, and solid financials. Some loans include prepayment penalties that charge fees if you pay off the loan early, reducing your flexibility. The total interest paid over a long-term loan can be substantial even with low rates—a $250,000 loan at 8% over ten years costs roughly $115,000 in interest.
Looking for a business term loan?
Levr.ai can help you find the right loan—it’s easy and fast
What can you use a business term loan for?
For most businesses, there is usually a never-ending list of expenses and bills to be paid. Some of these expenses are necessary evils in running your business and some of these expenses are activities that allow you to grow your business profits through increased gross revenue or implementing efficiencies.
Common uses for business term loans
Some of the most common applications of secured business term loans are working capital, improvements such as renovations, headquarter expansion and upgrades, purchasing new and more efficient equipment or machinery that may cost less to operate and produce more product improving profit margins and productivity.
Small business owners often use business term loans to launch new products or divisions of their business whether that could be opening new offices and hiring staff in new expanded locations and territories. Or doubling machinery on site to produce new products without slowing down the production on an already steady flow of existing product sales.
In fact, when businesses have a clearly negotiated growth opportunity to deliver on, have good credit, it can make more sense to secure additional, low-interest, funding via a business term loan than put the company at risk by drawing-down on funds used for cash-flow and monthly operating expenses.
Supporting data on business loan usage
The Government of Canada released data stating that equipment and leasehold improvements were the most common assets financed through business loans. With equipment loans making up $513 million and $380 million in lending respectively. This data underscores that businesses most frequently use term loans for assets that generate long-term value and improve operational capacity.
The beauty of business term loans is that they can be used for virtually any business related activity that demonstrates a clearly defined need for the business and the output or result that by having additional financial capital will deliver increased profits.
Prohibited uses
While business term loans offer flexibility, certain uses are prohibited by most lenders. You cannot use business loan proceeds for personal expenses unrelated to the business. Speculative investments, gambling, or illegal activities are universally prohibited. Some lenders also restrict using loan proceeds to pay existing owners, pay off owner loans, or distribute dividends. Real estate investment for rental income (as opposed to owner-occupied business property) may be prohibited or require specialized financing. Always confirm with your lender that your intended use is permitted before accepting loan funds.
Business Type | Most Common Term Loan Uses | Typical Loan Amount |
Restaurants | Kitchen equipment, renovations, expansion | $50K to $500K |
Retail Stores | Inventory, new locations, store upgrades | $25K to $750K |
Manufacturing | Machinery, facility expansion, automation | $100K to $2M plus |
Professional Services | Office space, hiring, technology systems | $50K to $500K |
Construction | Equipment, vehicles, working capital | $100K to $1M plus |
Healthcare | Medical equipment, facility upgrades | $100K to $2M plus |
Technology or SaaS | Product development, hiring, infrastructure | $50K to $1M plus |
E commerce | Inventory, warehousing, marketing | $25K to $500K |
How much can you borrow with a business term loan?
What you can borrow against a business term loan generally ranges from business to business, need to need and year to year depending on the economy growth and health.
There are a number of agencies that compile data and stats related to business funding, one of the most regulated and trusted sources of data is published annually by The Canada Small Business Financing Program (CSBFP).
While in this article we don’t go into detail about the CSBFP, this government organization works closely with private lenders for approving and distributing any registered loans with the CSBFP.
In its published data, over 2021-2022 over 5 thousand loans were extended to Canadian businesses valued at $1.2 billion. Year over year both the number and value of loans increased by 34% and 41% respectively. In its data set, the average CSBFP business loan was $246,507 and increase of 4.3% from 2020-2021.
While this data doesn’t include all funded business term loans in Canada, it’s a reliable enough data set to inform the conversation we’re having about how much should you borrow with a business term loan? Well, the average small business participating in this program borrowed roughly $250k. Is that how much you should borrow? The answer to this question is always – only borrow as much as you need.
Most business owners live and breathe every aspect of their business. And so, they have the best first-hand knowledge to know how much money to borrow. Consulting with business financial analysts, controllers and/or accountants will help you make dollars and sense of what to borrow, when and for how much.
Business owners, along with trusted staff and operators will be tasked with right-sizing the needs of clients and what output is required to meet profitability goals set for the business. These teams, financial statements and growth/operating plans inform not only how much to borrow but how to responsibly use that funding to achieve what you set out to do.
Who and what you'll need to qualify for business term loans?
As a business it’s always good to have financial records up to date with the latest financial snapshot of your business health. When looking to apply for a Business Term Loan what lenders will ask of you will vary, but typically you can count on the following list of items:
Required Documentation for Business Term Loan Applications
- Most recent business and personal tax returns
- Current business and personal credit history
- Bank statements (3-6 months)
- Proof of business ownership, verification of business address (lease agreement if applicable)
- Key financial statements i.e. Balance Sheet, Income Statement, Cash-flow Statement, Inventory on hand (and aging) reports and supporting financial forecasts
- Business Plan and Payroll & Org Charts
How long do you need to be in business?
Aside from standard paperwork, important health metrics considered by lenders also include how long you’ve been in business. Generally speaking lenders are looking to extend Business Term Loans to those who have been in business for 2 or more years.
Minimum annual revenue requirements
Lenders will use established business income and revenue to determine if they will fund/underwrite your business term loan. Minimum annual revenue varies from lender to lender for instance OnDeck requires at least $100,000 in annual revenue whereas bigger banks typically require more.
How existing loans affect your application
Along with the financial statements outlined above, lenders will carefully review any already existing outstanding loans. Terms, interest rate and payment history. It’s not uncommon for businesses to seek loans throughout the lifecycle of their business. And depending on the size of the loan and the project/goal it’s being used to fund – there could be outstanding borrowed capital that is currently working. This can be both good and bad for business loan applicants.
If your business has demonstrated significant revenue growth since the last loan was secured, and the terms of outstanding loans are being met – then it might not be a problem for a new lender to extend you additional capital under a new Business Term Loan. In these instances it will be important to outline cash-flow projections and plans associated with the good use of this borrowed capital to ensure the underwriters’ ability to repay.
Application process & timeline
Understanding the business term loan application process can help you prepare and set realistic expectations for funding timelines.
Step-by-step application process
- Pre-application preparation (1-2 weeks)
- Determine how much capital you need and for what purpose
- Check personal and business credit scores
- Gather required financial documents
- Create or update business plan
- Calculate debt-to-income ratio
- Research and compare lenders (3-7 days)
- Compare interest rates and terms from multiple lenders
- Review qualification requirements
- Consider online lenders vs banks vs SBA lenders
- Read customer reviews and lender reputations
- Submit application (1-2 days)
- Complete lender’s application (online or in-person)
- Submit all required documentation
- Provide business and personal financial information
- Disclose intended use of funds
- Underwriting and review (1-8 weeks)
- Online Lenders: 1-3 days
- Traditional Banks: 2-8 weeks
- SBA Loans: 6-12 weeks
- Lender reviews credit, financials, and business viability
- May request additional documentation or clarification
- Approval and loan terms offer (1-2 days)
- Receive formal loan offer with terms
- Review interest rate, repayment schedule, fees
- Ask questions about any unclear terms
- Negotiate if possible (especially with banks)
- Acceptance and closing (3-7 days)
- Sign loan agreement and promissory note
- Provide any final requested documents
- Review amortization schedule
- Understand all fees and obligations
- Funding (1-5 days after closing)
- Online Lenders: Often same-day or next-day
- Banks: 3-5 business days
- SBA Loans: 5-10 business days
- Funds deposited into business bank account
Be sure to review all your options
Now that you have a better understanding of what a business term loan is and how they can help your business it’s important to review all your options. If you have experience applying for a business loan (really any kind of business loan) you will already know the work involved can be time consuming.
Levr.ai is designed to make this process easier, faster and more straightforward. A safe and secure platform allows you to collaborate with the key members of your team i.e. accounting, financial planner, and business operators to organize all the required financial statements and necessary business forecasts, plans and documents. Having everything in one place makes it easier to apply with multiple lenders to secure the rates and loan repayment terms that are best for your business.
In addition to making the process of getting a loan better, Levr.ai’s free loans marketplace allows you to review options and compare offers from multiple lenders based on what is right for you and what allows you to achieve your growth goals.
Using the data you provide in your profile in tandem with our team’s financial industry experience—Levr.ai provides the data intelligence to customize options to review that are best to consider. Levr.ai also can negotiate exclusive loan rates with its expert team of certified financial advisors and loan industry partnerships.
Frequently asked questions about business term loans
What is a business term loan and how does it work?
A business term loan provides a lump sum of capital upfront that you repay over a fixed period through regular installments. You receive the full amount immediately—say $100,000—and make fixed monthly payments until the loan is fully repaid. Most term loans have fixed interest rates, so your payment stays the same throughout the loan term, making budgeting straightforward.
What's the difference between a secured and unsecured business term loan?
Secured loans require collateral—assets like equipment, real estate, or inventory that the lender can claim if you default. They offer lower interest rates and higher loan amounts. Unsecured loans don’t require collateral but have stricter credit requirements and higher rates. Most small business term loans require either collateral or personal guarantees from owners.
How much does a business term loan cost?
Interest rates range from 6% to 99% APR depending on your creditworthiness and lender. Bank loans typically cost 6-12% APR, SBA loans 10-15% APR, and online lenders 14-99% APR. Beyond interest, expect origination fees of 0.5-5% of the loan amount and possibly prepayment penalties. Always evaluate the APR (Annual Percentage Rate) which includes both interest and fees to understand true cost.
Can I get a business term loan with bad credit?
Yes, but options are limited and expensive. Online lenders may work with credit scores as low as 500, but expect rates of 30-99% APR, smaller loan amounts, and stricter collateral requirements. If possible, improve your credit before applying—even modest improvements from 550 to 620 can dramatically improve your options. Alternatives include equipment financing, invoice factoring, or SBA microloans.
What credit score do I need to qualify?
Traditional banks typically require 680-700+ personal credit. SBA loans require 680+ personal and 165+ business credit (as of June 2025). Online lenders may accept scores as low as 500-600, though with higher rates. Your business credit score also matters for established companies.
Can I have multiple business term loans at the same time?
Yes, though each loan increases your debt-to-income ratio and makes qualifying for additional financing harder. You must manage multiple payment schedules and ensure cash flow handles all obligations. Consider debt consolidation to combine multiple loans into one with potentially better terms.