Small business term loans
A term loan is a lump sum you repay in fixed installments over a set term, for a one-time cost with a clear payback.
16% to 25%
Rates lenders in our network quote for term loans, as of September 2026.1
It suits a one-time cost you can plan around, such as a renovation, a vehicle or a large order, because you know the payment and the end date before you sign. Offers come back side by side, each with its rate, term and total cost.
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How a term loan works
A lender agrees to lend a set amount for a set term, at a fixed or variable rate.
You receive the whole amount at once, in your business bank account.
You repay in installments on the lender's schedule, which may be monthly, weekly or another interval.
Each payment covers interest and part of the balance, until the loan is repaid at the end of the term. Paying off early may save interest or may carry a fee; the agreement says which.
When it fits, and when it doesn't
Where it fits
- You have a one-time cost with a clear payback, like a renovation, a vehicle or a large inventory order.
- You want a predictable payment you can build into your budget.
- Your business has steady revenue to cover the installments.
- You want to replace several debts with a single payment.
Reasons to think twice
- Your need is ongoing or unpredictable. A line of credit lets you borrow only what you use.
- Your revenue is seasonal, and a fixed payment would squeeze you in slow months.
- You pay interest on the full amount from the start, even on money you haven't spent yet.
- Some term loans come with origination or prepayment fees, collateral or a personal guarantee. Check every offer and agreement.
What lenders usually look at
- How long your business has been operating
- Revenue, and the activity in your business bank account
- Personal and business credit history
- Existing debt, and how much of your cash flow already goes to payments
- Your industry
- Collateral, where the lender asks for it
What they weigh, and how much, differs from one to the next and by product. No single number decides it.
Documents you may be asked for
- Recent business bank statements
- Business tax returns, and sometimes personal tax returns for the owners
- A profit and loss statement and a balance sheet
- A list of your current business debts
- A quote or estimate for what the money will pay for
Each lender or funder tells you what it needs for your application, and you can upload documents in your 37Lend account.
Also called
- Business term loan
- Small business loan
- Installment loan
- Commercial term loan
- Working capital loan
Compare with
Line of credit
A business line of credit lets you draw funds as you need them, up to a limit, and pay interest only on what you use.
SBA loan
An SBA loan is made by a lender and partly guaranteed by the U.S. Small Business Administration, usually with longer terms.
Equipment financing
Equipment financing pays for vehicles, machinery or other hard assets, and the equipment itself secures what you borrow.
Term loan questions
What are term loan rates?
Lenders in our network quote term loans at 16% to 25%, as of September 2026. That is the range quoted in our network, not an APR and not an offer. The rate you're offered depends on your credit profile, revenue and time in business, and on the lender that takes your application. Some term loans also carry fees, so compare offers by total cost, not just the rate.
Can I get a term loan with bad credit?
Possibly. Credit history is one of several things lenders weigh, along with how long you've been in business, your revenue and your bank activity, and each lender draws the line in a different place. Checking your options with 37Lend uses a soft credit inquiry, so seeing what lenders offer doesn't affect your credit score. Offers for a weaker credit profile can cost more, so compare total cost.
What's the difference between a term loan and a line of credit?
A term loan gives you one lump sum up front, repaid in installments on a fixed schedule. A line of credit gives you a limit you can draw from as you need it, repay and draw again, and you pay interest only on what you've drawn. A term loan suits a single known cost; a line of credit suits ongoing or uneven needs.
Do I need collateral for a small business term loan?
Not always. Some term loans are unsecured, though many still ask the owners for a personal guarantee. Others are secured by business assets. Whether a lender asks for collateral depends on the lender, the amount and your business profile, and the lender's agreement states what it requires.
Can I pay off a term loan early?
Usually, but check the agreement first. Some lenders charge a prepayment fee, and with some loans the total interest is set when you sign, so paying early saves little or nothing. Others let you pay early and save the interest you haven't yet been charged.
How much can I borrow with a term loan?
It varies by lender, product and business profile: lenders look at your revenue, time in business, credit and existing debt. 37Lend takes applications from $5,000, and each offer you receive shows the amount that lender will provide.
Want to talk it through first? Book a call with a funding advisor.