Best Long-Term Business Loans

Long-term business loans can finance large purchases and are offered by banks and online lenders.
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Loan Amount$5,000 - $10 million
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Terms3 - 10 years
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APR6% - 99%
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Funding Speed1 day - several weeks

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We’ll start with a brief questionnaire to better understand the unique needs of your business.

Once we uncover your personalized matches, our team will consult you on the process moving forward.

    250+ small-business products reviewed and rated by our team of experts.

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    Lead Writer
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    Edited by Sally Lauckner
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    Fact Checked
    7 best long-term business loans
    ProductMax loan amountMin. credit scoreLearn more
    SBA 7(a) loan

    SBA 7(a) loan

    Apply now

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    $5,000,000650
    Apply now

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    SBA Microloan

    SBA Microloan

    Apply now

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    $50,000620
    Apply now

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    iBusiness Funding - Online term loan

    iBusiness Funding - Online term loan

    NerdWallet Rating 
    4.5
    Apply now

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    $500,000660
    Apply now

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    JR Capital Equipment Financing

    JR Capital Equipment Financing

    NerdWallet Rating 
    4.1
    Apply now

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    $10,000,000620
    Apply now

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    SBA CDC/504 loan

    SBA CDC/504 loan

    $5,000,000680
    Bank of America Business Advantage Unsecured Term Loan

    Bank of America Business Advantage Unsecured Term Loan

    NerdWallet Rating 
    4.8
    Undisclosed700
    Accion Opportunity Fund - Small Business Working Capital Loan

    Accion Opportunity Fund - Small Business Working Capital Loan

    NerdWallet Rating 
    4.6
    $250,000600

    A closer look at the best long-term business loans

    SBA 7(a) Loan

    Best for repayment terms up to 25 years
    SBA 7(a) loan
    U.S. Small Business Administration

    SBA 7(a) loan

    Min Credit  

    650

    Read Review
    Apply now

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    Maximum term length: 25 years.

    • For-profit U.S. business.

    • Unable to access credit on reasonable terms from nongovernment sources.

    • Financial qualifications determined by individual lender.

    Pros

    Large borrowing maximums.

    Interest rates are capped.

    Long repayment terms available.

    Cons

    Personal guarantee is required.

    Collateral is typically required.

    Longer processing times than online lenders.

    Bank of America Business Advantage Unsecured Term Loan

    Best for low interest rates
    Bank of America Business Advantage Unsecured Term Loan
    Bank of America

    Bank of America Business Advantage Unsecured Term Loan

    Min Credit  

    700

    Maximum term length: 60 months.

    • Minimum credit score: 700.

    • Minimum time in business: 24 months.

    • Minimum annual revenue: $100000 .

    Pros

    Bank loan with competitive interest rates.

    No collateral required.

    Bank of America’s Preferred Rewards program can offer interest rate discounts and other perks.

    Cons

    Can be slow to fund.

    Prepayment fees may apply to early repayments.

    Must be an existing Bank of America customer to apply online.

    iBusiness Funding Online Term Loan

    Best for fast funding
    iBusiness Funding - Online term loan
    iBusiness Funding

    iBusiness Funding - Online term loan

    Min Credit  

    660

    Read Review
    Apply now

    with Fundera by NerdWallet

    Maximum term length: 84 months.

    • Minimum credit score: 660.

    • Minimum time in business: 24 months.

    • Minimum annual revenue: $50000.

    • No bankruptcies in the past seven years.

    Pros

    Cash can be available within two business days.

    Competitive rates among online lenders.

    Terms up to seven years.

    Cons

    Requires business lien and personal guarantee.

    Must be in business for a minimum of two years.

    Minimum credit score is higher than some other lenders.

    SBA CDC/504 Loan

    Best for financing commercial real estate
    SBA CDC/504 loan
    U.S. Small Business Administration

    SBA CDC/504 loan

    Min Credit  

    680

    Maximum term length: 25 years.

    • Be a for-profit U.S. business.

    • Net worth of less than $15 million.

    • Average net income of less than $5 million for the two years prior to your application.

    • Financial qualifications determined by individual lender.

    Pros

    Low down payment required.

    Repayment terms of up to 25 years.

    Competitive interest rates.

    Cons

    Personal guarantee is required.

    Must meet job creation or public policy goals to qualify.

    Longer processing times than online lenders.

    Accion Opportunity Fund Small Business Working Capital Loan

    Best for startups
    Accion Opportunity Fund - Small Business Working Capital Loan
    Accion

    Accion Opportunity Fund - Small Business Working Capital Loan

    Min Credit  

    600

    Maximum term length: 60 months.

    • Minimum credit score: 600.

    • Minimum time in business: 12 months.

    • Minimum annual revenue: $50000.

    Pros

    Loan amounts from $5,000 to $250,000.

    Customized loan terms.

    No prepayment penalty.

    Cons

    Slower processing speed compared to online lenders.

    Not available in all U.S. states.

    SBA Microloan

    Best for bad credit
    SBA Microloan
    U.S. Small Business Administration

    SBA Microloan

    Min Credit  

    620

    Read Review
    Apply now

    with Fundera by NerdWallet

    Maximum term length: 84 months.

    • Be a U.S. business.

    • Show your ability to repay the loan.

    • Personal guarantee and collateral likely required.

    • Specific financial qualifications determined by individual lender.

    Pros

    Can be used for a variety of funding purposes.

    Designed to finance traditionally underserved businesses.

    Startups and business owners with bad credit may be able to qualify.

    Competitive interest rates, low fees and long repayment terms.

    Intermediaries typically offer business training and educational resources.

    Cons

    Loan amounts max out at $50,000.

    Can’t be used to pay existing debt or purchase real estate.

    Collateral is likely required.

    Slow funding timeline.

    JR Capital Equipment Financing

    Best for equipment financing
    JR Capital Equipment Financing
    JR Capital

    JR Capital Equipment Financing

    Min Credit  

    620

    Apply now

    with Fundera by NerdWallet

    Maximum term length: 84 months.

    • Minimum credit score: 620.

    • Minimum time in business: Typically 24 months, but can prioritize industry experience in some cases.

    • No minimum annual revenue requirement.

    Pros

    Funding available within 48 hours.

    Competitive rates and repayment terms.

    Flexible payment options available, including deferment options for certain industries.

    No down payment required.

    Cons

    Must have good credit to qualify for no prepayment penalties.

    Not ideal for short-term purchases; terms start at three years.

    How to compare long-term business loans

    The best long-term loan for your business is the one with the most affordable rates you can qualify for and that meets your needs. Here are some factors to consider as you compare loan options:

    • Loan type. You should consider the types of business loans that a lender offers — and which type is best suited for your needs. If you’re looking to finance a car purchase, for example, you may look for a lender that offers dedicated business auto loans.

    • Repayment terms. Some long-term business loans offer repayment terms up to 10 — or even 25 — years. Although longer repayment terms will have smaller monthly payments, keep in mind that you’ll also pay more in interest over the total loan period.

    • Interest rates. To get the most competitive business loan rates, it’s helpful to be an established company with good credit and strong finances. Online lenders may offer more flexible qualification requirements, but they typically charge higher rates. You’ll want to compare multiple options to find the lender that can offer you the lowest rates.

    • Funding speed. Long-term business loans can be slower to fund, especially when issued by banks and SBA lenders. Online lenders can offer faster business loans with streamlined applications — but you may pay a little more in interest as a result.

    • Customer service. Customer support options and additional perks vary from lender to lender. Credit unions, for example, are often well known for their personalized customer service. Nonprofit lenders, on the other hand, may be able to offer general business training in addition to financing support.

    What is a long-term business loan?

    A long-term business loan is one with a lengthy repayment period, often defined in years instead of months. The repayment period typically ranges from three to 10 years; although, some loans, like SBA loans, can have even longer terms of up to 25 years.

    Long-term small-business loans can be a good option for purchasing real estate, financing equipment, purchasing company vehicles, renovating or expanding your business, hiring new employees, refinancing existing debt and more.

    Long-term business loans vs. short-term business loans

    Short-term business loans usually have repayment terms of 12 months or less — although they may extend to 24 or 36 months. Here’s an overview of the key differences between long-term and short-term business loans:

    • Repayment schedule. Long-term business loans typically have monthly repayments, whereas short-term loans may require weekly or daily payments.

    • Interest rates. Short-term business loans generally have higher annual percentage rates compared with long-term business loans — although the interest rate you receive will vary based on the lender and your business’s qualifications.

    • Borrower requirements. Lenders often have stricter business loan requirements for longer-term funding; you may need strong annual revenue, multiple years in business and good personal credit to qualify. Short-term lenders are usually more lenient and may work with startups or borrowers with bad credit.

    • Funding speed. Long-term financing can be slower to fund, especially with large business loans. Short-term loans, on the other hand, may fund in as little as 24 hours.

    • Use cases: Whereas long-term loans are best used for large investments in your business growth or expansion, short-term loans are well suited for working capital needs and covering emergency expenses.

    How do long-term business loans work?

    Long-term business loans provide borrowers with lump sums of capital. They are usually repaid on a monthly basis, with fixed, equal payments over the course of the term. Generally, this type of financing follows an amortization schedule, where you pay more toward interest at the beginning of the loan and more toward the principal at the end.

    Depending on the loan product, you may have a choice between a fixed or variable interest rate. Long-term business loans are offered by banks, online lenders and credit unions, among other types of lenders.

    Types of long-term business loans

    Here are some of the most common types of long-term business loans:

    SBA loans

    These government-backed small-business loans typically have some of the lowest rates and the longest repayment terms in the market (up to 25 years, for some of them). To qualify for an SBA 7(a) or 504 loan, you work with banks and other lenders, approved by the U.S. Small Business Administration.

    SBA microloans are distributed through nonprofit community institutions that work with underserved business owners, such as minority business owners and women business owners. They have terms up to seven years but are only available in amounts up to $50,000.

    Bank and credit union business loans

    Traditional lenders provide long-term business loans, often with repayment terms between five to seven years. Bank business loans used to purchase commercial real estate may have longer terms of up to 25 years, in some cases. Banks offer some of the lowest interest rates on the market, but your exact rate will depend on your qualifications. You can also apply for a long-term business loan at a local community bank or credit union.

    Online business loans

    If you need fast funding — or can’t qualify for an SBA or bank loan — consider a long-term business loan from an online lender. iBusiness Funding (formerly Funding Circle), for example, offers repayment terms of up to 84 months. Although online lenders tend to have less stringent requirements than traditional lenders, they typically charge higher interest rates and may offer smaller loan amounts.

    How to get a long-term business loan

    You can follow these steps to get long-term financing for your small business.

    1. Evaluate your financing needs

    You’ll want to determine how much funding you need and why you need it. This will help you orient your loan search in the right direction. If you’re looking to purchase a truck for your business, for example, dedicated semi-truck financing may be the best option.

    2. Review your qualifications

    To qualify for a long-term business loan, you may need to meet strict requirements. Many lenders want to see at least two years in business, good credit and strong finances. You may also need to provide collateral.

    If you have a lower credit score or less than one year in business, consider some alternative options:

    3. Compare business lenders

    Once you have an understanding of your financing needs and qualifications, you can start researching and comparing lenders. The best small-business lender offers the product you need, has requirements you can meet and charges affordable interest rates.

    When comparing loan options, consider how the length of the repayment term affects the overall loan cost.

    Say, for example, you get a $100,000 term loan with an APR of 10% and a term of 10 years. With this loan, you’ll make monthly payments of approximately $1,322, for a total repayment of $158,581, including $58,581 in interest.

    But if you repay this same loan over seven years, you’ll have a larger monthly payment (about $1,660); however, you’ll save over $19,000 in interest costs over the life of the loan. Your total interest costs would be $39,450 for a total repayment of $139,450.

    🤓Nerdy Tip

    Use our business loan calculator to estimate a loan’s monthly payment and costs.

    4. Gather your documentation and apply

    The application process will vary based on your lender and loan type. Banks and credit unions may ask for extensive documentation and require you to visit a branch location to apply. Online lenders, on the other hand, typically offer streamlined applications with fewer documentation requirements.

    5. Sign your loan agreement and get funds

    Once your application is approved, your lender will send you a business loan agreement to review and sign. You’ll want to read through the agreement carefully and ensure you understand all of the terms and conditions. If you have any questions or concerns, you should reach out to your lender directly for clarification.

    After you’ve signed the agreement, your lender will typically transfer your funds directly into your business bank account. This process may take a few days, depending on your bank.

    Frequently asked questions

    Most long-term business loans have a maximum repayment term of 10 years. But some types of loans, like commercial real estate loans or construction equipment financing, may have longer terms. For instance, the maximum term for SBA loans used for commercial real estate purposes is 25 years.

    Many lenders will require that you have strong personal credit in order to qualify for a long-term business loan. If you have bad credit, however, you may be able to access capital through an SBA microloan. These loans max out at $50,000 but are distributed through nonprofit organizations, which often have more flexible requirements and are willing to work with newer businesses or those with bad credit.

    It depends on the interest rate and term length of your specific loan, but in general, the longer the loan term, the more interest you’ll pay over the life of the loan. Although you may pay less in total interest on a short-term loan, your monthly payment will typically be higher than with a long-term loan of the same amount.

    Long-term business loans are often used when a business needs a lump sum of cash for expenditures such as the purchase of real estate or equipment, renovation of an existing business, business expansion or refinance of existing debt.

    Methodology

    NerdWallet’s review process evaluates and rates small-business loan products from traditional banks and online lenders. We collect over 30 data points on each lender using company websites and public documents. We may also go through a lender’s initial application flow and reach out to company representatives. NerdWallet writers and editors conduct a full fact check and update annually, but also make updates throughout the year as necessary.

    To come up with our list of the best long-term business loans, we selected lenders with term lengths of 5 years or more and strong NerdWallet star ratings.

    Our star ratings award points to lenders that offer small-business friendly features, including:

    • Transparency of rates and terms.

    • Flexible payment options.

    • Fast funding times.

    • Accessible customer service.

    • Reporting of payments to business credit bureaus.

    • Responsible lending practices.

    We weigh these factors based on our assessment of which are the most important to small-business owners and how meaningfully they impact borrowers’ experiences.

    NerdWallet does not receive compensation for our star ratings. Read more about our ratings methodology for small-business loans and our editorial guidelines.

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