Explore our most flexible small business loans, with funds in as few as 2 days.

A business term loan is perhaps the most straightforward type of financing that small business owners can access. Approved borrowers receive a lump sum upfront from their lender and repay the loan on a predetermined schedule.

You can use a term loan for almost any business purpose. Designed with flexibility in mind, Funding Circle’s Business Term Loan can help you meet all sorts of short- and long-term business goals, including hiring more staff, buying equipment, covering payroll, and renovating or expanding an existing location.

Term loans can be a good choice for established businesses with good credit history and a few years of operating history under their belt. For those businesses looking to borrow funds on shorter timelines, term loans can also be a faster alternative to waiting for the longer loan application processes of a bank or the Small Business Administration (SBA).

In most cases with Funding Circle, no. Typically, our application only requires a soft pull on your credit, meaning that your overall credit score won’t be affected by applying.2 The required FICO credit score for business owners is at least 660.²

Funding Circle (and our network of lending partners) does not charge an application fee — applying comes at no cost and obligation to you. However, do be aware that this does not include your loan’s final closing costs.

Some term loans do require collateral, such as personal or business assets, based on your lending partner and the duration of your loan. While it is always best to check with your Account Manager, most long-term loans (those between 3 and 5 years), which can be used for a major investment such as an expansion, may require some type of collateral.

Term loans are repaid with fixed payments over a fixed period of time (the “term”) - anywhere from six (6) months to seven (7) years - in bi-weekly or monthly installments.

Funding Circle proudly allows prepayment on your business term loan, with no prepayment penalty whatsoever.

With fixed payments on a set repayment schedule, our term loan makes managing your monthly budget easy. Its flexibility means you can use your business funds your way, with no prepayment penalty.

However, term loans are typically a better fit for more established businesses with good credit that have been in operation for a few years. If you’re a start-up, or are still working on building your business credit, a term loan may not be the best option at this time for your business.

The APR for our business term loan will vary depending on creditworthiness and the term length selected, meaning that there’s no set rate for every customer. Apply today to find out what rate your business may be eligible for!