11
Best Long-Term Business Loans
OnDeck
Loan amounts
$5,000 to $250,000
APR range
Varies by loan
Minimum Credit Score
625
$5,000 to $250,000
Varies by loan
625
Eligibility
- Minimum credit score: 625
- Time in business: One year
- Minimum revenue: $100,000 per year
Turnaround time
You can apply and receive a decision from OnDeck on the same day.
Compare the Best Long-Term Business Loans
Best Long-Term Business Loans: A Closer Look
BEST BUSINESS LOAN FOR HIGH-TICKET PURCHASES
NewtekOne
Loan amounts
$1,000 to $15 million
APR range
6%
Minimum Credit Score
650
$1,000 to $15 million
6%
650
NewtekOne is a subsidiary of Newtek Bank that provides business solutions, such as business lending, insurance and payment systems.
Why We Like It
We love that NewtekOne offers loan terms as long as 25 years with loan amounts reaching up to $15 million. For businesses that qualify, NewtekOne may provide a solution to financing sizable purchases of property, inventory, machinery and equipment.
Why We Don’t Like It
It can take 30 to 45 days to get loan funding from NewtekOne, so it’s an option that may be less appealing to businesses in need of quick cash.
Who It’s Best For
NewtekOne is best for established businesses that want to borrow a large sum for an extended period of time, since strong credit and at least two years in business are necessary to qualify.
- High loan amounts
- Loan terms up to 25 years
- Strong credit necessary
- At least two years of tax returns are required
- Funding can take 30 to 45 days
Loan Details
- Minimum credit score: 650 for established businesses; 700 for new startups
- Minimum annual revenue: Not disclosed
- Minimum time in business: 2 to 3 years
Funding Speed
Loan funding may take 30 to 45 days.
BEST BUSINESS LOAN FOR LIMITED CREDIT
Accion
Loan amounts
$5,000 to $250,000
APR range
As low as 8.49%
Minimum Credit Score
600
$5,000 to $250,000
As low as 8.49%
600
AOF is a lender on a mission to advance economic mobility for small businesses by serving low-income and underserved communities. AOF uses an inclusive underwriting model that takes a holistic approach to assessing creditworthiness.
Why We Like It
We love that AOF provides loan specialists to guide borrowers through the loan process. Borrowers also get access to free business education and training programs.
Why We Don’t Like It
The maximum loan term is just five years, giving you less flexibility to extend out payments for large loans.
Who It’s Best For
AOF is an excellent option for borrowers who aren’t able to qualify for loans with other lenders because of limited credit or limited time in business. AOF’s flexible eligibility criteria and business tools could provide the funding and resources necessary to grow.
- Business coaching and education resources
- Flexible eligibility criteria
- Customizable repayment terms
- Origination fee
- Loan funding can take up to two weeks
Loan Details
- Minimum credit score: 600
- Minimum annual revenue: $50,000
- Minimum time in business: One year
Funding Speed
The borrowing process may take two weeks or longer.
BEST BUSINESS LOAN FROM A TRADITIONAL BANK
Chase Small Business Loan
APR range
Not disclosed
Loan amounts
$5,000 to $500,000
Minimum Credit Score
Not disclosed
Not disclosed
$5,000 to $500,000
Not disclosed
Chase Bank is a subsidiary of JPMorgan Chase, the largest bank in the United States by assets. With more than 4,700 physical branches, Chase Bank offers an in-person lending experience, which may be a boon for applicants who prefer borrowing from a traditional bank.
Why We Like It
Chase Bank can provide financing for large investment projects with loan terms as long as seven years. Additionally, loans have no origination fees.
Why We Don’t Like It
Chase Bank may charge a prepayment penalty fee if your loan is over $250,000 and you pay it off early. Chase Bank doesn’t provide minimum credit and revenue requirements, and more transparency on eligibility could make it easier for borrowers to understand the likelihood of approval.
Who It’s Best For
Chase Bank loans are best for borrowers with multiple years of business experience and strong credit. Although Chase Bank doesn’t share a minimum credit requirement, traditional banks tend to have stricter credit and financial requirements for business loans.
- No origination fee
- Relationship banking rate discounts
- Multiple loan types available
- Prepayment penalties for loans $250,000 or more
- Doesn’t disclose interest rates
- Highest loan amounts require in-person application
Lender Details
Eligibility
- Minimum credit score: Not disclosed
- Time in business: two years
- Minimum annual revenue: Not disclosed
Turnaround time
The funding turnaround time for a loan may range from a few days to a few weeks.
BEST BUSINESS LOAN FOR EQUIPMENT FINANCING
National Funding
Loan amounts
Up to $150,000
Minimum Credit Score
575
Up to $150,000
575
National Funding offers several loan products for businesses, including financing to buy or lease equipment with loan terms of up to five years.
Why We Like It
We like that loan funding from National Funding may be available in as little as 24 hours for borrowers who need money quickly. What’s more, borrowers who pay off loans early may qualify for early repayment discounts.
Why We Don’t Like It
National Funding charges a factor rate for its loans, and borrowing costs with a factor rate can be high depending on your loan term and the rate you’re assigned.
Who It’s Best For
National Funding loans are best suited for borrowers who prioritize loan speed, as the lender can offer funds quickly to purchase, lease or repair equipment.
- Low minimum credit score requirement
- Financing Up to $150,000
- Funds can finance new or used equipment
- Low loan amount compared to competitors
Eligibility: National Funding recommends a minimum credit score of 575 to qualify for its equipment financing. Your business must also have been in operation for at least six months. National Funding requires minimum gross annual sales of $250,000.
Turnaround time: Most of National Funding’s loans are disbursed within 24 hours of approval. However, this is subject to receipt of required documentation, underwriting guidelines and processing time by your bank.
BEST BUSINESS LOAN FOR FAST FUNDING
Credibly
Loan amounts
$5,000 to $300,000
APR range
3% to 5% monthly
Minimum Credit Score
700+
$5,000 to $300,000
3% to 5% monthly
700+
Credibly provides loans of $5,000 to $300,000 to small and mid-sized businesses. While the minimum credit score for a loan is 700+, Credibly may use other financial metrics to measure your business’s financial health to see if you’re a good candidate for a loan.
Why We Like It
We love that Credibly offers high loan amounts, with loan approvals possible within four hours and funding available the next business day. Customer support is also highly accessible, available seven days a week from 5 a.m. to 8 p.m. PST.
Why We Don’t Like It
Credibly doesn’t share minimum interest rates and fees, making it harder to estimate how much loans might cost before applying.
Who It’s Best For
Credibly is best for businesses with strong credit, long business history and high annual revenue who need to borrow a large sum quickly.
- Low minimum credit score and time-in-business requirements
- Financing starts at $10,000
- Funding up to $250,000 available within one week
- $240,000 annual revenue requirement
- Only publishes general interest rates online
- Origination fee may apply
Lending Details
Eligibility
- Minimum credit score: 700+
- Minimum annual revenue: $240,000
- Required time in business: 6+ months
Funding Speed
Funding may be available as soon as the same day.
Most Popular is calculated from the number of times each affiliate product was selected by Forbes Advisor users over a six month time period.
What Is Considered a Long-Term Business Loan?
Long-term loans are small business loans with terms that generally span three years or more. In comparison, a short-term business loan typically has a repayment period of three to 24 months.
The maximum term you can obtain in a long-term business loan varies by loan type. Below are a few common loan types, along with typical loan term lengths.
- Term loans: Up to 10 years
- Equipment loans: Up to 10 years (or up to the equipment’s useful life)
- Real estate loans: Up to 25 years
How To Choose a Long-Term Business Loan
When shopping around for a long-term loan, compare the following loan features:
Credit and Revenue Requirements
Credit and revenue requirements vary by lender. However, in general, long-term loans tend to have stricter eligibility criteria since the lender must trust you to make payments over several years or multiple decades. A minimum of $500,000 in annual revenue and very good credit (a score of 740 or higher) may be necessary to obtain a large loan.
Some online lenders may be willing to work with borrowers who have credit scores well below 740, although this may come with a higher interest rate. Comparing requirements across multiple lenders can help you find a lender willing to work with you.
Interest Rates
Interest rates for business loans are often expressed as an annual percentage rate (APR), which includes all applicable fees. Inputting your loan amount, term and rate into a business loan calculator can help you estimate total costs for different loan sizes and terms.
If rates are not expressed as an interest rate, borrowing costs could be shown as a factor fee. Factor fees generally range from 1.1 to 1.5, and you multiply the fee by your loan to calculate the total repayment amount. For example, if you borrow $50,000 with a 1.1 factor fee, you would repay $55,000 in total, $5,000 of which would be the cost of borrowing.
Collateral Requirements
Large loans with long repayment terms often require collateral, such as property or machinery, to secure the loan. While pledging collateral is an extra step in the borrowing process, an advantage is that loans secured by collateral may offer lower interest rates because the collateral backing reduces the lender’s risk.
Fees
Fees are extra costs lenders may charge for processing or penalties. For example, lenders may charge upfront origination fees to process your loan. This fee may be a flat fee or a percentage of the loan funds.
Lenders may also charge late fees or prepayment penalties if your payment isn’t on time or you pay off your loan before the term is over. Comparing small print details across several loans can help you identify and avoid loan options with steep costs.
Funding Speeds
It can take longer to obtain a large small-business loan because of the extra steps involved during underwriting, such as verifying collateral. Check out processing times from multiple lenders to find one that can get you money in a time frame that aligns with your goals.
Ways To Use Long-Term Business Loans
Long-term business loans are best suited for established businesses with strong credit, several years of experience and consistent revenue. You can use a long-term business loan to:
- Acquire other businesses
- Buy storefronts or other types of property
- Buy machinery or vehicles
- Buy office furniture or fixtures
- Increase working capital
- Refinance existing debt
- Renovate an office space
Pros and Cons of Long-Term Business Loans
Before shopping for a long-term business loan, consider the advantages and disadvantages of how long-term business loans work.
| PROS | CONS |
|---|---|
|
Long-term loans may offer high loan amounts, like $10 million or more
|
Collateral may be required
|
|
Extended loan terms can reduce payments
|
Strong credit, high revenue and multiple years in business may be necessary to qualify
|
|
Interest rates may be lower than those of short-term loans
|
Prepayment penalties may apply if you pay off the balance early
|
|
Loan funds may be invested to grow or purchase assets that provide high returns
|
Total interest costs are typically higher than for short-term loans
|
How To Apply for a Long-Term Business Loan
If you decide that taking out a business loan is the right step for you, these are the steps to apply:
- Shop around. Some lenders let you prequalify for loans so you can check rates and determine your likelihood of getting approved before filling out the full application. Check online lenders, credit unions and banks to see where you might find affordable loans.
- Compare rates and fees. Once you have multiple preliminary offers, compare costs and loan features across several lenders.
- Get your paperwork together. Lenders measure business credit, personal credit and business financials to determine credit risk. The higher your revenue and the stronger your credit score, the more likely you are to qualify for a loan.
- Consider putting up collateral. Putting up collateral like property, vehicles or inventory could help you qualify—and with a lower interest rate. However, be aware that your property could be taken if your loan isn’t repaid.
- Complete the application and sign documents. The lender will walk you through the application steps. The full application process usually involves a hard credit check, and if approved, you’ll sign off on loan documents. Depending on the lender, loan funds could be available within a few days or several weeks.
Alternative Financing Options
A long-term business loan is just one way to borrow money for your business. Below are alternatives if you don’t qualify for a long-term business loan:
- Commercial mortgages: If you want to purchase property, such as an office building or strip mall, commercial mortgages may offer terms as long as 30 years.
- Business credit cards: While the use of credit cards is typically seen as a method of short-term financing, you can also use and pay off business credit cards over an extended period since it’s a revolving form of credit with no end to the term.
- Personal loan: When you can’t get approved for a business loan, a personal loan could offer the funding you need to get a business up and running. Lenders review your personal finances and not your business finances to approve you for a personal loan, which could help you get approved when your business doesn’t meet requirements.
Methodology
We reviewed popular lenders based on 18 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 and review methodology.
Find the Best Small Business Loans
Frequently Asked Questions (FAQs)
What is the longest term for a business loan?
The longest term for a business loan is typically 25 years.
Can you get a 20-year business loan?
Yes, 20-year business loans exist; however, the amount businesses can qualify for depends on business credit, business financials and assets that can be used as collateral.
What is the payment on a $1,000,000 business loan?
The payment on a $1 million business loan varies depending on the interest rate. For example, a $1 million loan with 7% APR and a 20-year term would have monthly payments of $7,752.99.