Long Term Loans
What is a long term business loan?
While a short term business loan is advanced for a period of 3 to 12 months, a long term business loan has a longer repayment period of 15 to 36 months. This is not the rule of thumb though because some loan terms can be as long as 10 years. This kind of loan is best for business projects that will be recouping the amount invested over a longer span of time.
Main benefit of a long term business loan.
The main benefit of getting a long term business loan is that you get a longer amount of time to repay it. This means lower monthly payments. We can therefore say that a long term loan is less hassle than a short term loan. Also, your business has the chance to grow without the burden of a larger payment, so you will be able to keep more of the income.
Use the capital as you see fit.
Collateral may be needed
A long term business loan involves a greater amount of, money and therefore borrowers are usually asked to secure the loan with personal assets like their home or fixed assets of the business. This contributes to making the interest rates lower, as opposed to short term loans.
There are many positive reasons to get a long term loan.
Easy to pay back
Lower and more manageable monthly payments
Easy to Qualify
Easy to get as it can be secured with the owner’s home
Can get big funding
Long payment time means a lower interest rate