Featured Partner Offers
Loan amounts
$5,000 to $250,000
Best Long-term Business Loans 2024
BEST FOR SMALL- TO MID-SIZED BUSINESSES
National Funding
Editor’s Take
National Funding offers working capital small business loans from $5,000 to $500,000 with terms of four months to two years, paid daily or weekly. Borrowers can use their funds for all working capital needs, including inventory, payroll, marketing, taxes and more. National Funding also offers equipment financing up to $150,000 but applicants must have a minimum personal credit score of 575 to qualify for that financing method.
Unlike most business lenders, National Funding offers early payoff discounts. Small business loan customers who repay their total remaining balance in full within the first 100 days of the contract will automatically receive a 7% discount off the total remaining balance. Equipment financing customers who repay the total remaining balance early, at any point during the term, will automatically receive a 6% discount off the total remaining balance.
Pros & Cons
Financing up to $500,000
Early payoff discounts
Most loans are funded within 24 hours of approval
Requires daily or weekly payments
Potentially high borrowing costs
Requires minimum gross annual sales of $250,000
Details
Eligibility
Minimum credit score: 600 (575 for equipment financing)
Time in business: Six months
Minimum sales: $250,000 per year
Turnaround time
Most loans are funded within 24 hours of approval, subject to receipt of required documentation, underwriting guidelines and processing time by your bank.
National Funding offers loans from $5,000 to $500,000, but two years is the maximum length for a large loan. I had a client that got excited by what he thought would be a lending source that could do $500k for five years, but the five-year loan was only offered at $100,000. A local banker made a collateralized loan for the large equipment purchase, and the client took a small short-term loan from National Funding to help with cash flow during a tough spot.
— Herman Thompson, Jr., advisory board member
BEST FOR A LENDER COMPARISON SITE
Lendio
Editor’s Take
Lendio is an online business loan marketplace that connects prospective borrowers with traditional banks and nonbank online lenders. By filling out one application, Lendio is able to connect business owners to over 75 lenders. Over its existence, Lendio has helped small business owners receive over $12 billion in funding nationwide.
Applicants may see Lendio as a one-stop-shop. You can apply for business loans, lines of credit, SBA loans, equipment financing, merchant cash advances (MCAs), commercial mortgages, invoice factoring and business acquisition loans. However, because Lendio is a marketplace and not a lender, it doesn’t publish specific terms. Instead, you’ll have access to its lending partners, and it will help you find the best offer for your specific needs.
Pros & Cons
One application connects you to more than 75 lenders
Wide variety of loan products, including term loans, lines of credit and SBA loans
Some lenders charge prepayment penalties
Terms and funding times vary depending on specific lender
Details
Overview
Lendio is an online business loan marketplace that connects prospective borrowers with traditional banks and nonbank online lenders. Over its existence, Lendio has helped small business owners receive over $12 billion in funding nationwide.
Applicants may see Lendio as a one-stop shop. You can apply for business loans, lines of credit, SBA loans, equipment financing, merchant cash advances (MCAs), commercial mortgages, invoice factoring and business acquisition loans. However, because Lendio is a marketplace and not a lender, it doesn’t publish specific terms. Instead, you’ll have access to its lending partners while helping you find the best offer for your needs.
Eligibility
Minimum Credit Score: 560
Time in Business: Six Months
Minimum Annual Revenue: $50,000
Funding time
Applying through Lendio takes 15 minutes. After you review your offers and are approved by your lender, you can receive your funds in as little as 24 hours.
BEST FOR ESTABLISHED BUSINESSES
Funding Circle
Learn More
From participating partners via businessloans.com’s website.
Editor’s Take
Funding Circle has been a direct lender specializing in small business loans since 2010. Since its inception, it has helped 130,000 businesses in 700 industries and lent $19.4 billion globally. We chose Funding Circle because it provides fast, affordable loans with a simple application process and funding in as little as 48 hours. Prospective borrowers have three options: business term loan, line of credit or SBA loan.
Funding Circle term loans range from $25,000 to $500,000 with repayment terms from six months to five years. If you choose to apply for a business line of credit, you can access credit lines between $6,000 and $100,000. However, Funding Circle doesn’t specify its line of credit repayment terms. You can also apply for Funding Circle SBA loans, which range from $25,000 to $500,000 with terms up to 10 years.
There is one main drawback of Funding Circle: there’s a one-time origination fee on each loan ranging from 3.49% to 6.99% of the approved loan amount.
Pros & Cons
Loans from $25,000 to $500,000
Funding in as little as 48 hours
No minimum annual revenue requirement for most loans
One-time origination fee between 3.49% to 6.99% of the approved loan amount
Requires two years in business, so it’s not ideal for startups
Not available to Nevada businesses
Details
Eligibility
Minimum credit score: 660 for most loans; 650 for SBA loans
Time in business: Two years
Minimum revenue: None for most loans; $400,000 per year for SBA loans
Turnaround time
Depending on the loan type, you can receive your funds within two days. However, SBA loan funding may take up to two weeks.
Funding Circle provides long-term loans that are essential for businesses planning significant investments in growth or infrastructure. The clear terms and lower interest rates compared to short-term loans make this an excellent choice for businesses with a stable financial outlook and a strategic long-term development plan.
— Cache Merrill, founder and CTO, Zibtek
BEST FOR HEALTHCARE PROFESSIONALS
TD Bank
Loan amounts
$10,000 to $1 million
up to $5 million for small business loans
Learn More
From participating partners via businessloans.com’s website.
$10,000 to $1 million
up to $5 million for small business loans
Editor’s Take
Business owners can apply for traditional term loans and lines of credit, U.S. Small Business Administration (SBA) loans and even other products like credit cards and checking accounts through TD Bank.
TD Bank offers business loans from $10,000 to $1 million with terms ranging from one to five years. If you’d rather have access to a line of credit, it offers credit lines between $25,000 and $500,000. What’s more, TD Bank is an SBA-approved lender, meaning you can apply for an SBA through the bank. SBA loans typically have loan amounts of up to $5 million and terms up to 25 years.
The company also stands out for healthcare professionals and offers unique financing options for dentists, veterinarians, physicians and eye care professionals. For instance, it offers lending solutions up to $12 million with 100% practice financing plus working capital, in addition to partnership buy-ins and buy-outs, equipment purchase, and practice mergers and acquisitions.
Note: While online applications are available for loans up to $100,000, you must apply in person for loans over $100,000. TD Bank has branches in Connecticut, Delaware, Florida, Maine, Maryland, Massachusetts, New Hampshire, New Jersey, New York, North Carolina, Pennsylvania, Rhode Island, South Carolina, Vermont, Virginia and Washington D.C.
Pros & Cons
Offers term loans, lines of credit and SBA loans
Online application and mobile banking
Customized financing options for healthcare professionals
Must apply in person for loans over $100,000
Branches located in only 16 states
Details
Eligibility
Minimum credit score: 660
Time in business: One year
Minimum annual revenue: Does not disclose
Turnaround time
Although TD Bank offers same-day approval for its business loans and lines of credit, it may take up to two business days to receive your funds. SBA loans, on the other hand, may take several weeks to fund.
BEST FOR FAST EQUIPMENT FINANCING
QuickBridge
APR range
Factor rates start at 1.11
Factor rates start at 1.11
Editor’s Take
QuickBridge is an alternative loan platform that provides small business loans and equipment financing to business owners in all 50 states. Applying with QuickBridge is quick and funding can happen within 24 hours. However, equipment financing is its only long-term business loan; its traditional small business loans only have terms up to 24 months.
Pros & Cons
Flexible repayment options
Quick application and fast funding deposited to a bank account
Early payoff discounts
Loan interest may be high
$250,000 minimum annual revenue requirement for small business loans
Only short-term repayment terms are available
Details
Eligibility
Minimum credit score: 600
Time in business: Six months
Minimum revenue: $250,000 per year
Turnaround time
You can apply and receive a decision from QuickBridge on the same day.
QuickBridge, which operates as an alternative lender, provides small businesses with funding within a matter of days. Its thorough approval process involves looking at your business as a whole, more than just your credit score. However, for approval, there’s a minimum credit score requirement of 600 and an annual revenue requirement of $250,000, which isn’t the lowest in the industry.
While the speedy lending process may seem attractive, QuickBridge charges interest as a factor rate starting at 1.10 plus an origination fee in the range of 1% to 5%, making the loans quite pricey.
— Abid Salahi, co-founder and CTO, FinlyWealth
BEST FOR SBA LOANS
SmartBiz
Editor’s Take
SmartBiz is an AI-lending platform that connects business owners with U.S. Small Business Administration (SBA) loans, term loans and flexible financing options. SBA loans of up to $5 million and term loans of up to $500,000 are available.
When you apply for a loan through SmartBiz Loans, you may receive several offers from different lenders within its network to help you find the lowest interest rate or best terms.
Pros & Cons
Offers prequalification
Competitive interest rates
Good customer reviews
Requires business lien and personal guarantee
Stringent qualification requirements
Details
Eligibility: SmartBiz requires a minimum personal credit score of 650 to qualify for a business term loan, 650 for an SBA 7(a) loan and 675 for a commercial real estate loan. Businesses must have at least two years of history to qualify for an SBA or business term loan.
Turnaround time: SmartBiz does not disclose its turnaround times. However, it may take between 3 days to several weeks to receive your funds, depending on your loan type.
Summary: Best Long-term Business Loans
Tips to Compare Long-term Business Loans
When searching for the right long-term business loan, consider features such as repayment terms, interest rates, fees and more. Here are some tips for comparing long-term business loans:
Look for repayment terms that align with your budget and goals. If you need a good amount of time to pay back your loan, look for a lender that offers a longer repayment term. Stretching out your loan can make your monthly payments more affordable, but keep in mind that it can also lead to higher interest charges over time.
Compare interest rates to find the lowest one. When you borrow a business loan, you’ll have to pay back the amount you borrow, plus interest. Checking your rates with multiple lenders can help you find a loan with a competitive rate.
Watch out for additional fees. Loan fees can also add to your costs of borrowing, so keep an eye out for origination, administrative or other fees that could make your long-term business loan more expensive.
Find out a lender’s minimum and maximum loan amounts. Every lender sets its own loan amounts, and some offer higher limits to borrowers with excellent credit or hefty business revenue. Find out how much a lender can offer you to make sure it meets your needs.
Ask how long it will take to get your loan. Some lenders can process loan applications quickly, while others may take a few weeks to release your funds. If you have an immediate need for a loan, prioritize lenders that offer speedy loan disbursement.
Review eligibility requirements to borrow a loan. Lenders may require a certain credit score, annual revenue, time in business or other criteria to qualify for a loan.
Evaluate the lender’s customer support options. If you’ve found a lender that offers what you’re looking for, consider its customer support options before you make your final decision. A quality customer support team can make or break your borrowing experience, so review the options and read over customer reviews to see what previous borrowers have to say about the lender.
What Is Considered a Long-term Business Loan?
A long-term business loan is a type of business loan with a relatively long repayment period, typically spanning three to 10 years. Some long-term business loans, such as certain types of U.S. Small Business Administration (SBA) loans, offer repayment periods of up to 25 years.
Loan amounts vary, but they will typically be larger than the amount you’d see on short-term business loans. You can find long-term business loans from the SBA, banks and alternative lenders.
You can use these loans to purchase equipment, fund construction projects, invest in land or real estate, expand your workforce or pay for other expenses that will grow your business.
Long-term vs. Short-term Business Loans
While long-term business loans have repayment periods of three to 10 years or more, short-term business loans often have repayment periods of three months to three years.
The length of repayment isn’t the only difference between long-term and short-term business loans, though. Here are some other ways to distinguish these two loan types from each other:
Repayment schedule. You usually pay a long-term business loan back with monthly payments, while a short-term loan might require weekly or even daily payments.
Interest rate. Rates may be lower on long-term loans than short-term loans, though the rate you get will depend on your creditworthiness.
Loan amounts. You may be able to borrow $6 million or more with a long-term loan, while short-term loans could be as small as $1,000.
Borrowing criteria. Lender requirements are more stringent for a long-term loan and may require good credit, several years in business and strong annual revenue. Short-term loans may have more flexible credit requirements and could be available to individuals who are just starting their businesses.
Time to fund. It may take longer for a lender to process a long-term loan, especially if it’s a large loan amount, whereas short-term loan funds might be available within 24 hours.
Loan purpose. A long-term loan is often used to fuel serious business growth, whether through buying equipment, hiring employees or completing renovations. A short-term loan, on the other hand, may be used to pay for emergency expenses, cover a gap in cash flow or take advantage of a short-term business opportunity.
How Do Long-term Business Loans Work?
Long-term business loans typically offer a lump sum upfront that you can use toward your business expenses. You’ll pay back the loan on a monthly basis, making payments toward both your principal balance and the interest that has accrued.
The longer your repayment period, the lower your monthly payments will be. At the same time, you’ll be in debt for longer and pay more interest charges as a result. Although your loan may seem more affordable from month to month, the total cost will increase as you add years to your repayment period.
Along with interest, your lender might also charge fees, such as an origination fee, administrative fee or late fee. Some lenders may also levy prepayment penalties for paying back a loan ahead of schedule.
Types of Long-term Business Loans
Various financial institutions offer long-term business loans. Here are a few loan types to consider.
1. Online Loans
Online financial companies provide business loans, though the repayment periods may not be as long as the ones you’d find from a bank or credit union.
Some online lenders have terms that max out at five years, for instance. Plus, some offer lower loan amounts. For example, a loan from BlueVine can’t exceed $250,000, while a loan from Fundbox maxes out at $150,000.
On a positive note, some online lenders can process your application quickly, sometimes funding your loan in a few days while a traditional bank could take several weeks.
2. SBA Loans
SBA loans offer competitive rates and repayment periods of up to 25 years. There are different types of SBA loans with varying amounts. SBA 7(a) loans, for example, range from $25,000 to $5 million. SBA microloans offer loan terms of up to six years, but the maximum microloan amount is $50,000.
3. Bank Loans
Traditional banks are another place to look for long-term business loans. Rates and terms will vary by institution, but most banks consider your credit, revenue, profitability and time in business when evaluating your application for a loan. Some may also require collateral to borrow the loan so they can recoup their losses if you fall behind on payments.
4. Credit Union Loans
Some credit unions also offer long-term business loans with competitive rates and terms. As with banks, credit unions review your personal and business financial situation when determining whether you qualify for a business loan. Unlike banks, though, credit unions may require you to become a member in order to borrow a loan.
Methodology
We reviewed popular lenders based on 16 data points in the categories of loan details, loan costs, eligibility and accessibility, customer experience and the application process. We chose the best lenders based on the weighting assigned to each category:
Loan cost: 35%
Loan details: 25%
Customer experience: 20%
Eligibility and accessibility: 10%
Application process: 10%
Within each major category, we also considered several characteristics, including available loan amounts, repayment terms and applicable fees. We also looked at minimum credit score and time in business requirements and the geographic availability of the lender. Finally, we evaluated each provider’s customer support tools, borrower perks and features that simplify the borrowing process—like online applications, prequalification options and mobile apps.
Where appropriate, we awarded partial points depending on how well a lender met each criterion.
To learn more about how Forbes Advisor rates lenders, and our editorial process, check out our Loans Rating & Review Methodology.
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