CORE FACILITY
Term loan
A fixed amount, a fixed payment, a fixed end date. The cheapest of the three core facilities and the easiest to budget around. It also asks the most of your financials, which is exactly why it costs less.
- Size
- $25,000 – $1,000,000
- Term
- 12 – 60 months
- Speed
- 3 – 7 business days
- Best for
- Seasoned businesses with clean books
What this actually costs
- Amount funded
- $100,000
- Total dollar cost
- $14,900
- Payment schedule
- $3,192 monthly for 36 months
- Annualized rate
- 18.5% APR
Illustrative only. Your actual terms depend on your business and the funder.
How it works
- 01
You send statements and financials
Bank statements to start; tax returns and a P&L if the amount warrants it.
- 02
A funder underwrites the business
Cash flow coverage, debt already on the books, and the story behind any dip.
- 03
You get an amount, a rate, and a term
Every option comes back on one page with total dollar cost, not just a rate.
- 04
You repay on a fixed schedule
Same payment every period until it's done. No surprises to manage.
Term loans are quoted as an interest rate, which is the honest way to quote money — but the rate alone still isn't the price. Origination fees, the payment frequency, and whether interest is amortized or fixed-fee all change what you actually hand over. Our quote shows the total dollars, every time.
When it fits
- You know the cost of the thing you're buying and when it pays back.
- Your books are clean enough to underwrite and your revenue is seasoned.
- You want a payment you can put in a budget and forget about.
- You're refinancing expensive short-term debt into something survivable.
When it's the wrong tool
- You need the money in 48 hours and can't wait on underwriting.
- The need is recurring and uneven — that's a line of credit.
- The payment only works if next quarter goes perfectly.
- You'd be borrowing to cover a collections problem instead of fixing it.
Common uses
- A manufacturer buying a machine that unlocks a bigger order.
- A home-services company financing a fleet expansion after a contract win.
- A distributor refinancing two advances into one payment it can carry.
- A practice building out two new operatories.
- A restaurant group funding a second location buildout.
Questions
- How is a term loan different from an advance?
- A loan is money lent at an interest rate with a fixed schedule. An advance is a purchase of future receivables at a discount. The loan is almost always cheaper; the advance is almost always faster and easier to qualify for.
- What do you need to underwrite one?
- Four months of business bank statements to start. Larger amounts usually add a P&L, a balance sheet, and a business tax return.
- Is there a prepayment penalty?
- Depends on the funder. We ask for it in writing on every option and put it on the same page as the cost.
- Do you require collateral?
- Many term facilities in this size range are unsecured with a personal guarantee. Larger amounts may take a blanket lien. We tell you what's being pledged before you sign.
- Can a first-time owner get one?
- Sometimes — it depends on the acquisition, the seller's numbers, and how the file is told. It's harder than an advance and worth trying first if the numbers support it.
See what you'd actually pay.
Three documents to start: the last four months of business bank statements, a driver's license, and a voided check. That's the whole file to get options back.
FundMainStreet.com is a financing arranger, not a lender or a bank. We connect business owners with third-party funding partners and are compensated by those partners when a transaction closes; we disclose that compensation to you before you sign. Approval, terms, and funding are determined solely by the funding partner. Merchant cash advances are purchases of future receivables, not loans. All figures shown on this site are illustrative and are not an offer or commitment to fund.