How A Term Loan Works
WHY OUR TERM LOAN PROGRAM IS DIFFERENT.
If you’re wondering how long-term business loans work, Majestic Capital Funding can break it down for you.
We have a team of seasoned experts with extensive years of experience in the business industry. From the minute you request funding, you’ll have a committed business advisor assisting you every step of the way. They’ll listen, advise, and make certain you make the optimal choice for your business.
WHAT IS A TERM LOAN?
By definition, a term loan is a borrowed sum of money that you pay back over an extended period of time. Some term loans extend a few years, while others can go as long as 30 years—similar to a mortgage payment.
For business term loans, one can expect to have at least five years to pay it back. If you’re curious as to how term loans work and why firms utilize them, you’ll discover there’s a great return on investment for lenders. Thanks to interest, money lenders such as banks can make sizable profits when they allow businesses to borrow money. When stretched out over an extended period of 20 or 30 years, even a relatively small interest rate can generate sizable profits.
THE REASON A TERM LOAN IS GOOD FOR YOUR BUSINESS.
Long-term business loans are attractive by nature. They provide business owners with opportunities they otherwise wouldn’t have. If a company needs to borrow 50,000 dollars, the bank can lend you the money and have you make small monthly payments over the extended time frame.
The payments are small enough to not affect your business, and you can acquire all the items, parts, and services you need for your business operations, which you otherwise may not have been able to get without the funding.
To discover even more about how a term loan works, be sure to contact one of our expert term loan advisors today.