Estimate the monthly payment, total interest, and amortization schedule for a small business term loan based on your loan amount, rate, and repayment term.
Term loans for working capital or equipment commonly run 1 to 7 years, while loans secured by real estate can extend to 20-25 years. Shorter-term loans usually carry less total interest but higher monthly payments.
Lenders typically weigh your business and personal credit history, time in business, annual revenue, and whether the loan is secured by collateral. Newer businesses or those without collateral generally see higher rates.
A conventional business loan is issued directly by a bank or lender using its own underwriting criteria. An SBA loan is also issued by a private lender but is partially guaranteed by the U.S. Small Business Administration, which often allows for lower rates or longer terms than a comparable conventional loan.