How to Apply for a Business Term Loan in 2024
Get Funding from $5k to $500k | 48-Hour Approvals | Best Rates
Why Business Term Loans Are Essential for Growth
Over 68% of U.S. businesses apply for business term loans to finance expansions or manage cash flow. Key 2024 statistics:
- Average loan amount: $147,000 (Federal Reserve data)
- Approval rate for established businesses: 67%
- Typical APR range: 6-30%
What You Need to Apply
Document Checklist:
- 2+ years of business tax returns
- 680+ personal credit score
- 6 months of bank statements
- Business plan with financial projections
Best Lenders to Apply for Business Term Loans
| Lender | Min. Credit Score | Funding Speed | APR Range |
|---|---|---|---|
| Bank of America | 680 | 5-7 days | 6.25%-12% |
| LendingClub | 620 | 48 hours | 9.95%-35% |
| SBA 7(a) Loans | 650 | 30-90 days | 5.5%-11% |
5-Step Process to Apply for a Business Term Loan
- Check Eligibility: Verify credit score & revenue requirements
- Compare Lenders: Use tools like NerdWallet
- Gather Documents: Tax returns, bank statements, EIN
- Submit Application: Online portals vs in-person
- Review Terms: Watch for prepayment penalties
How Credit Scores Affect Your Application
Lenders evaluate applications based on:
- 720+: Best rates & terms
- 650-719: Moderate APR
- Below 650: Requires collateral
Source: Experian Business Credit Guide
Avoid These 3 Application Errors
- Underestimating needed loan amount
- Ignoring alternative lenders
- Not checking prequalification options
Important: Rates valid as of July 2024. Always consult a financial advisor before signing loan agreements.
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