With amounts up to $5 million or more and repayment terms between three and 25 years — long-term loans are ideal for making larger investments in your business. While they come in different forms, the most popular types are business term loans, SBA loans, equipment loans, business acquisition loans and commercial real estate loans.
Here’s a closer look at the best long-term business loans to help you compare.
Funding Circle is an investor-backed lending platform that's highly rated by thousands of past customers. It specializes in helping small businesses access fast, competitively priced loans and financing options. Its long-term loan options include business term loans up to $500,000 and SBA loans with repayment terms up to 10 years.
It's invested over $20 billion in 135,000 businesses around the globe, including women and minority-owned businesses — and uses an advanced technology platform that can give borrowers an approval decision in just minutes. But unlike some lenders, it charges an origination fee between 4.49% to 10.49%.
Pros
Investor backed funding
No prepayment penalties
Quick, streamlined application
Cons
SBA loans cap out at $500,000
Origination fee applies
Loan amount
$25,000 – $500,000
APR
starting at 7.49%
Loan term
6 months to 7 years
Requirements
660+ credit score, 2+ years in business, operates in an approved industry, no bankruptcies in the past 7 years.
Lendio marketplace is a business loans marketplace with 75+ partners that offer a range of long-term business loans, including term loans, SBA loans, equipment financing, business acquisition loans and commercial mortgages. The benefit is that you can compare multiple lenders with a single form — saving you time and effort.
Customers like Lendio for its fast, streamlined application process and experienced loan officers. Having support can be helpful when you're not entirely sure which loan is best for your situation. Lendio is also known to be fast: it offers 24-hour turnaround on its term loans and equipment financing options.
Pros
Options for bad credit
Rates as low as 3% APR
Excellent customer reviews
Cons
Not a direct lender
Funding fees apply to your loan
Marketing may continue after being funded
Loan amount
$1,000 – $10,000,000
APR
Varies by lender
Min. Credit Score
500
Loan term
3 months to 25 years
Requirements
Operate business in US or Canada for 6 months or more, have a business bank account, minimum 520 personal credit score, at least $8,000 in monthly revenue.
SBA business loans are long-term loans of up to 30 years and are partially backed by the government — which means less risk to the lender and lower rates for you. But it may be harder to qualify for an SBA loan than other types of loans, as you need to show a certain amount of revenue and time in business.
The Huntington National Bank is an SBA Preferred Lender with the highest number of approvals for SBA loans in the nation, making it our best pick for this category. It offers the 7(a), Express and 504 loans with down payments as low as 10% and loan amounts up to $10 million. As a top SBA lender, it has dedicated SBA loan specialists to help with your application.
Pros
SBA Preferred Lender
May offer faster turnaround times than regular lenders
High number of approvals compared to other lenders
Cons
No SBA Microloans
Mixed customer reviews
Loan amount
$5,000 – $5,000,000
APR
Varies
Loan term
Up to 300 months
Requirements
Meet the SBA requirements for a government-backed loan
If you're an established business owner with good credit, Bank of America may offer some of the lowest rates available. While it doesn't have many long-term loan options, its Business Advantage Term loan offers fixed rates as low as 8.5%, and you could shave an additional 0.25% to 0.75% off that rate with BofA's relationship discounts.
To qualify, you need a minimum FICO score of 700, at least two years in business and a minimum annual revenue of $100,000. But you may need to provide more documentation than with an online lender and turnaround times may be slower. And for loans over $50,000, you'll need to work with a dedicated specialist at the bank.
Pros
SBA Preferred lender
Potential for reduced rates
Full suite of business banking products
Cons
Origination fee of $150
Pattern of customer complaints
Online application may not be available
Loan amount
$10,000 – $100,000
APR
Starting at 8.50%
Min. Credit Score
Not stated
Loan term
12 to 60 months
Requirements
Good credit, 2+ years in business, $100,000+ revenue
Rapid Finance is a highly-rated fintech lender that stands out for its customer service and fast turnaround times. The company offers several types of long-term loans, including term loans, SBA loans, asset-based loans, bridge loans and commercial real estate (CRE) loans with terms of up to 30 years.
To get started, you may just need to show three months of business bank statements and your business tax ID — much less documentation than what other lenders may require. If approved, you could have funds in your bank account in just a few hours. Customers praise the company for its streamlined process, fair terms and quick turnaround.
Equipment loans can be ideal for business owners who don't want to use cash, credit cards or lines of credit to purchase equipment. Because they're backed by collateral and secured by liens, equipment loans can generally offer more competitive rates and terms than other types of unsecured loans.
Taycor Financial offers both equipment leasing and financing options with 0% down, and you could get approved up to $400,000 with no tax returns required. This means you could get approved within hours with minimal information needed. But there's not a lot of information about its loans online and origination fees may apply.
Pros
Low-doc application process
Financing over $400,000 available
Offers higher amounts than some other lenders
Cons
Mixed reviews online
Liens are placed on equipment
Origination fees may apply
Loan amount
$400,000+
APR
Varies
Requirements
Have been in business for less than two years
Loan amount
$400,000+
APR
Varies
Methodology: How we chose these lenders
Our lending experts analyze dozens of business loan providers to narrow down the best options for business owners. We weigh lenders against 12 key metrics:
Application process
Credit score minimums
Customer service reviews
Eligibility requirements
Extra features
Fees
Funding turnaround times
Lender reputation
Minimum and maximum loan amounts
Products offered
Rates
Willingness to work with risky industries
We also search for lenders that cater to a range of needs, including those that work with bad credit and newer business owners.
How to compare long-term business loans
Here are the top things to keep in mind when comparing long-term business loans:
Repayment terms. The repayment terms for business loans range greatly by loan type. The longer the repayment term, the lower your monthly payments will be, but the more interest paid over time — and vice versa. The loan type largely determines how long you have to pay it back. SBA loans generally have the longest terms.
APRs. APRs on long-term business loans are generally lower than APRs on short-term loans, but can vary widely across lenders. We recommend comparing multiple quotes from different lenders to be sure you’re getting the most competitive rate.
Origination and other fees. Depending on the lender and your credit profile, you may be charged an origination fee from 0.05% to 10% on your loan. The lender may also charge prepayment penalties, late fees and monthly administrative fees, so be sure to check.
Funding times. While you may be able to get a term loan in just a couple of days from an online lender, SBA loans can take one to two months to fund. If you need funds right away, some options may work better, including short-term loans.
Customer support options. Many lenders have loan officers who can answer your questions and support you throughout the application process. You may discover loans that you didn’t know about — but could be better for your situation.
Customer reviews. Customer reviews on sites like Trustpilot and the Better Business Bureau (BBB) website are a great place to learn about past customers’ experiences with a particular lender.
How long-term business loans work
Long-term business loans offer a lump sum loan — typically at a fixed interest rate — that you repay with even, fixed payments over three to 30 years. The loan starts accruing interest as soon as you receive it. This differs from a line of credit or credit card, which only charges interest on what you borrow.
Repayments on long-term business loans are usually monthly, whereas short-term loans require bi-monthly, weekly or even daily payments. This means payments are typically lower with a long-term loan, but with more interest paid over the long run.
However, the interest on your long-term loan payments may be tax deductible, and some long-term loans, like CRE loans, may offer interest-only payments during the loan term — allowing you to reduce your cash outflow.
Pros and cons of long-term business loans
Pros
Ideal for long-term growth and expansion
Payments lower than with short-term loans
Rates may be lower than for short-term loans
May have certain tax advantages
Cons
Pay more interest over the long run
May be harder to qualify for than a short-term loan
Best rates go to established businesses
May take longer to fund than short-term loans
Compare other long-term business loans
Use our table to compare lenders, and then select Learn more to visit the lender’s site or More info to read our review.
The Finder Score crunches 12+ types of business loans across 35+ lenders. It takes into account the product's interest rate, fees and features, as well as the type of loan eg investor, variable, fixed rate - this gives you a simple score out of 10.
To provide a Score, we compare like-for-like loans. So if you're comparing the best business loans for startups loans, you can see how each business loan stacks up against other business loans with the same borrower type, rate type and repayment type.
Prequalification involves answering a series of questions about yourself and your business to determine your eligibility before you formally apply for a loan.
Here are the general steps:
Visit the lender’s website and fill out the prequalification form.
Provide information about yourself and your business.
View your loan options and compare offers.
Once you’ve narrowed down your options based on your quotes, you can formally apply for a loan with the lender of your choice.
How to apply for a long-term business loan
Applying for a long-term business loan typically follows these five steps:
Determine the financing you need. Long-term business loans come in different forms. Choosing the right option ensures that you are getting the best type of loan to cover the type of costs you’re financing, for example, equipment or real estate.
Check your eligibility. This step involves checking your personal and business credit scores, tallying your revenue, verifying your time in business and determining if you have any collateral to pledge if you choose a secured loan.
Gather your documentation. Required documents typically include bank statements, tax returns, financial statements and other documents. You may also need to provide a business plan and personal guarantee if you’re a newer business owner.
Complete the application. Fill out the full application and upload the required documents or link to your financial accounts. Be sure to review the application for accuracy before submitting to avoid delays in processing.
Wait for approval and funding. Online lenders tend to have fast approval and funding times — which means if you’re approved, you could have a decision same-day and funds in 72 hours or less.
Long-term business loans are available from online lenders, banks and credit unions. While you may be able to secure a lower rate with a bank or credit union if you’re an established business owner — online lenders stand out for their faster processing times and more relaxed eligibility requirements, which may make it easier to get approved.
What should I do if I was denied a business loan?
If you’ve been denied a business loan, here are three steps you can take to potentially correct the situation:
Ask the lender why they said no. Call the lender to discuss your application and ask why your application was turned down. You may be able to correct the problems and resubmit the application.
Take corrective action. Once you know the reason it was denied, try to rectify the situation. There may have been missing or inaccurate information on your application, or your credit score could have been improved before you applied.
Prepare a new application. When you’re in a position to reapply, try applying with the same lender or consider an alternative form of financing that you’re more likely to get approved for.
It’s often easier to get approved for a secured loan backed by business assets. You could also apply for a personal loan.
Alternatives to a long-term loan
Not ready to take out a long-term business loan? Consider these alternatives:
Personal loan. You may be able to use a personal loan for business expenses. Personal loans aren’t dependent on your business financials or time in business, which could work well for new business owners who don’t qualify for a business loan.
Business credit card. To pay for ongoing business needs, consider a business credit card. They can help boost your business credit score while you earn perks like points or cash back on your business expenses.
Grants. Business grants are free money through federal and state government agencies, as well as private corporations. Since they’re free, many people compete for grants and they can take months to fund.
Investor financing. If you’re an entrepreneur, money from an angel investor can give you the cash you need to get your business off the ground. But you’ll have to give up equity in your company in return.
Crowdfunding. Crowdfunding is a popular marketing tool and a good way to judge interest in your product or service. It can help you gain potential customers while you drum up funding for your business.
Kat Aoki was a personal finance writer at Finder, specializing in consumer and business lending. She’s written thousands of articles to help consumers make better decisions on their home loans, bank accounts, credit cards, cryptocurrency and more. Kat is well versed in working with leading brands in the real estate, mortgage and personal finance industries, and her expertise has been featured on Forbes Advisor, Lifewire and financial comparison sites like iSelect and realestate.com.au. She holds a BS in business administration from California State University, Sacramento and enjoys hiking and yoga in her spare time. See full bio
Kat's expertise
Kat has written 184 Finder guides across topics including:
BHG Money is a nonbank lender that offers investment, debt consolidation, startup and healthcare-related loans to licensed professionals. Borrow up to $250K with minimal requirements.
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