Understanding Business Term Loans
Liberty Capital Group offers a variety of business term loans designed to meet the needs of small business owners. Here is a comprehensive guide to help you understand the different types of loans, requirements, and funding expectations.
As we celebrate 20 years of service, Liberty Capital Group is more committed than ever to helping businesses achieve their financial goals. We continue to innovate and expand our product offerings to meet the evolving needs of our clients. With a focus on excellence, integrity, and customer satisfaction, we look forward to many more years of success and partnership with the businesses we serve.
Types of Business Term Loans
Short-Term Business Loans:
- Amount: $2,500 to $250,000
- Term: Typically, up to 18 months
- Interest Rate: Starts at around 10%
- Features: Quick funding (as little as 24 hours), flexible repayment options (daily, weekly, or monthly), and minimal paperwork.
Long-Term Business Loans:
- Amount: Up to $5,000,000 per location based on the need
- Term: 2 to 15 years
- Interest Rate: Lower rates due to longer repayment periods and often requiring collateral and typically for well bankable clients.
- Features: Lower monthly payments, potential for large funding amounts, and use for major expenses like expansions, equipment purchases, or large inventory.
Unsecured Business Loans:
- Amount: Up to $5,000,000
- Term: Varies from 3 to 36 months
- Interest Rate: Generally higher than secured loans due to the lack of collateral.
- Features: No need for collateral, faster approval process, and funding can be used for a variety of business needs.
- Amount: Varies based on collateral value and LTV
- Term: Varies up to 20 years
- Interest Rate: Lower due to collateral security
- Features: Requires collateral such as property or business assets, lower interest rates, and larger loan amounts available.
- Commercial building, apartments, condos and other commercial properties falls into this. We have SBA 504, Investors, and private banks and lenders who will fund your commercial loan and bridge loans.
Equipment Financing and Leasing:
- Amount: Based on equipment value
- Term: Matches the useful life of the equipment
- Interest Rate: Competitive rates
- Features: Specifically, for purchasing or leasing business equipment, preserving cash flow, and potential tax benefits.
What are the Requirements for Business Term Loans?
- Approved Industry
- Revenue: Demonstrated gross monthly revenue if not pre-revenue startup.
- Time in Business: Typically, at least 2+ years, but varies by loan type, industry.
- Credit Score: Personal credit score is considered, though high scores are not always required.
- Documentation: Financial statements, tax returns, bank statements, and a personal financial statement may be require for bigger ticket items or for SBA Express loan or bank loans.
Funding Rates and Features
- Fast Funding: Many loans can be funded within 24 hours to a week.
- Flexible Terms: Payment plans are tailored to the business’s cash flow needs.
- No Pearly Payoff Penalties: Many loan options allow for early repayment without additional fees.
- Customizable Loan Products: Loans can be structured to fit specific business needs, whether for working capital, expansion, or equipment purchases.
- Early Payoff Discount: Depending on the term loans, you might be able to pay off the principle early without paying for the remaining unaccrued interest.
Benefits of working with Liberty Capital.
Liberty Capital offers a practical solution for small business owners looking to manage costs, access tax capital through various funding sources, and maintain accessibility from a trusted business loan broker.
Business funding can be a complicated process, so you must not do it alone. Working with an business loan broker who knows how to package the best approval will only help get you the right financing.
While loans provides advantages like hedging against inflation and preserving cash flow, it is essential to weigh these benefits against the potential long-term costs and lack of asset ownership. By understanding the full range of financing options based on your company, personal profiles, and financial standing, you can make informed decisions, save time without having to bank hop not knowing the lender you applied at places all does A Credit, but you are a C credit? How would you know? Let the expert do the work for you so you can go back doing what you’re good at, running your business.
We are on your side, your best support for your business’s growth and financial health. Contact Liberty Capital today to explore the best business term loans for your business so you can expand and grow with a peace of mind.
How To Apply!
Liberty Capital is committed to helping small business owners acquire the heavy equipment they need to thrive. So, we make it simple for you to apply using our Simple Application
Join the thousands of businesses that have trusted Liberty Capital Group with their financing needs. Let us help you achieve your business goals and take your business to new heights.
What do we need?
To get a free quick no obligation loan offer analysis, we would need the following: but subject to additional info depending on the loan type, amount and your credit profile.
- ONLINE APPLICATION
- Last Years Tax returns
- Current financial statements
- Recent bank statements
We look forward to speaking with you.
Best of luck!