Long-term business loans can help business owners secure capital for significant investments, such as expansion, equipment purchases or even refinancing existing debts. These loans generally offer repayment terms longer than two years, which can provide you with affordable monthly payments.
The best long-term business loans of 2024 not only come with these lengthy terms but also a variety of loan amounts, lenient credit score requirements and fast funding.
Best long-term business loans
- National Funding equipment financing: Best for fair credit.
- Kapitus business loan: Best for large loans.
- Rapid Finance business loan: Best for fast funding.
Best for fair credit
National Funding equipment financing
Blueprint Rating
Via National Funding's website
Loan amounts
Up to $150,000
Repayment terms
2 to 5 years
What you should know
With an equipment financing loan from National Funding, you can borrow up to $150,000 and choose a repayment term from two to five years. If you’re approved, you can get your funds as soon as the next business day. Plus, if you opt to pay off your loan early, you can get a 6% discount on the remaining balance.
National Funding accepts credit scores as low as 600, which could make it ideal if you have fair credit (usually considered to be a score from 580 to 669). To qualify, your business must also have been in operation for at least six months, depending on your situation. Additionally, your business must generate at least $250,000 in annual revenue, and you’ll need to provide an equipment quote from a vendor with your application.
Note that National Funding charges an origination fee from 1% to 5%, which can impact your borrowing costs. It also doesn’t disclose its interest rates for equipment financing. To see what you might be eligible for, you’ll need to apply and discuss your options with one of the lender’s funding specialists.
Pros and cons
Pros
- Accepts fair credit scores.
- Discount available for early repayment.
- Fast funding.
Cons
- Doesn’t publish interest rates online.
- Charges an origination fee.
- Lower loan maximum compared to some lenders.
More details
- Loan amounts: Up to $150,000.
- Repayment terms: 2 to 5 years.
- Perks: Early repayment discount (6% of remaining balance).
- Fees: Origination fee (1% to 5%).
- Min. credit score: 600.
- Required time in operation: 6 months.
- Required annual revenue: $250,000.
- Time to fund: Within 1 to 3 business days after approval.
Best for large loans
Kapitus business loan
Blueprint Rating
From participating partners via businessloans.com's website
Loan amounts
$10,000 to $5 million
Repayment terms
Up to 5 years
What you should know
Kapitus offers long-term business loans from $10,000 up to $5 million with terms as long as five years. This can make it a good choice if you’re looking to borrow a large amount.
To qualify, you’ll need a credit score of at least 625. Your business must also have been in operation for a minimum of two years, and it must generate at least $250,000 in annual revenue. If you’re approved, you could get your funds as soon as the next business day.
Keep in mind that Kapitus doesn’t disclose its interest rates online, so you’ll have to contact the lender to see what your borrowing costs could look like. Fees could also apply for late payments.
Pros and cons
Pros
- Can borrow up to $5 million.
- Accepts fair credit scores.
- Fast funding.
Cons
- Doesn’t publish interest rates online.
- Higher time-in-business and annual revenue requirements compared to some lenders.
- Fees for late payments can apply.
More details
- Loan amounts: $10,000 to $5 million.
- Repayment terms: Up to 5 years.
- Perks: None.
- Fees: Late fee (amount not disclosed).
- Min. credit score: 625.
- Required time in operation: 2 years.
- Required annual revenue: $250,000.
- Time to fund: As soon as the next business day after approval.
Best for fast funding
Rapid Finance business loan
Blueprint Rating
From participating partners via businessloans.com's website
Loan amounts
$5,001 to $1 million
Repayment terms
3 months to 5 years
What you should know
Rapid Finance can be a good option if you’re facing time-sensitive opportunities or unexpected financial demands. You can borrow $5,001 up to $1 million and choose a term from three months to five years. If you’re approved, you could get your funds as soon as the next day —sometimes even as fast as a few minutes or hours after approval.
Prospective borrowers can apply online with a valid form of identification, a business bank account number and routing information as well as the last three months of business bank statements.
Note that Rapid Finance doesn’t disclose its minimum qualification requirements. However, it does identify itself as an alternative funder. This means you might have an easier time getting approved for a business loan from Rapid Finance compared to traditional financing options.
This lender also doesn’t publish its interest rates online. While it does specify that fees can apply, Rapid Finance doesn’t disclose what these fees might be and how much they could cost you. To see what your overall borrowing expenses might look like, you’ll need to contact Rapid Finance.
Pros and cons
Pros
- Fast funding.
- Can borrow up to $1 million.
- Considers alternative lending criteria.
Cons
- Doesn’t publish interest rates online.
- Doesn’t disclose fees (if any).
- Doesn’t disclose minimum qualification requirements.
More details
- Loan amounts: $5,001 to $1 million.
- Repayment terms: 3 months to 5 years.
- Perks: None.
- Fees: Does not disclose.
- Min. credit score: Does not disclose.
- Required time in operation: Does not disclose.
- Required annual revenue: Does not disclose.
- Time to fund: As soon as the next business day after approval (potentially within minutes or hours of approval).
Compare the best long-term business loans
| Product type | Loan amounts | Repayment terms | Min. credit score | Time to fund (after approval) | |
|---|---|---|---|---|---|
National Funding | Equipment financing | Up to $150,000 | 2 to 5 years | 600 | Within 1 to 3 business days |
Kapitus | Term loan | $10,000 to $5 million | Up to 5 years | 625 | As soon as the next business day |
Rapid Finance | Term loan | $5,001 to $1 million | 3 months to 5 years | Does not disclose | As soon as the next business day (or faster, in some cases) |
Methodology
Our expert writers and editors have reviewed and researched multiple lenders to help you find the best long-term business loan. Out of all the lenders considered, the three that made our list excelled in areas across the following categories (with weightings): loan details (40%), loan cost (20%), eligibility and accessibility (15%), customer service (10%) and application process (15%).
Within each major category, we considered several characteristics, including maximum repayment terms, APR ranges, loan amounts, late fees and prepayment penalties. We also considered each lender’s minimum requirements for credit score, time in operation and annual revenue as well as funding time and customer experience.
Why some lenders didn’t make the cut
Of the business loan lenders that we reviewed, only a handful made the cut. This was mainly due to the majority of lenders having maximum terms of only two or fewer years. Some also didn’t receive high enough scores due to not publicly disclosing eligibility information, not disclosing funding speeds or having poor customer reviews.
What is a long-term business loan?
A long-term business loan is a type of term loan that provides a business with a lump sum of capital that can be repaid in installments over an extended period — typically three to 10 years, depending on the lender. This can be ideal for financing major investments, such as the purchase of real estate, the acquisition of another business or large capital projects.
These loans often come with fixed interest rates, which means your rate and payment will stay the same throughout the life of the loan. Another advantage is that by opting for a longer term, you can keep your payments lower and more affordable. However, this also means you’ll pay more in interest over time.
Current business loan rates
Business loan interest rates vary by lender as well as by the type of financing and the borrower’s qualifications. For example, traditional bank loans typically have lower interest rates than alternative lenders like online platforms or peer-to-peer (P2P) lending. As of Feb. 7, 2024, the average rates with private business loan lenders range from 8.49% to 36% for a business term loan, 8% to 60% for a business line of credit and 7.5% to 24% for equipment financing, according to Lendio.
Keep in mind that several factors can affect the rates you’re offered on business loans — including your personal and business credit, how long your business has been in operation and the amount of annual revenue it generates. Generally, you’ll need good credit to qualify for the best interest rates. While some lenders offer business loans for bad credit, these can come with higher interest rates and more fees compared to good credit loans.
Getting approved for a long-term business loan
While qualifications can vary by lender, here are some common requirements that you’ll typically need to meet for a long-term business loan:
- Personal and business credit: Lenders will generally consider your personal credit score when making an approval decision — especially if you have a newer business that hasn’t yet generated significant revenue. A good personal credit score is usually considered to be 670 or higher. A lender might also review your business credit history.
- Time in operation: Your business will typically need to have been in operation for at least six months to two years. This shows stability and a track record of success.
- Annual revenue: Lenders also want to see that your business has stable and consistent revenue streams. In general, lenders prefer an annual revenue of $100,000 to $250,000. They may also look at your profit margins and overall financial health.
- Collateral: Many traditional lenders require collateral to secure a business loan, such as equipment, real estate or other valuable business assets. There are also some lenders that offer unsecured business loans. However, because unsecured loans are riskier for lenders, they can come with more stringent requirements and higher interest rates. Also note that business loans often require a personal guarantee, which is an agreement that you’ll repay the loan with your personal assets if your business defaults.
- Business documentation: A lender might ask to see a solid business plan outlining your goals and your business’s financial statements. You’ll also need to specify how you plan to use the loan funds.
- Industry and market conditions: Lenders will generally consider your business’s size and industry as well as market conditions when reviewing your application. If your business operates in a high-risk industry or if the market is uncertain, you could have a harder time getting approved. Lenders also sometimes restrict the types of industries they’re willing to work with, so be sure to double-check before you apply.
Easier to qualify for newer businesses: Compare the top startup business loans
Best for poor credit
Credibly business loan
Loan amounts
$5,000 to $400,000
Time to fund
As soon as the same day
Via Credibly's website
Loan amounts
$5,000 to $400,000
Time to fund
As soon as the same day
Choosing the best long-term business loan: How to compare
To choose the best long-term business loan for your needs, it’s crucial to carefully compare the available options. Here are some important points to keep in mind when weighing your loan choices:
- Interest rates: Your interest rate will play a major role in your overall borrowing costs. Also keep in mind that some business lenders charge factor rates instead of traditional interest — this is essentially a flat fee based on your original loan amount.
- Loan amounts: Business loans can range from as little as a few hundred dollars up to $5 million, depending on the lender. Be sure to borrow only what you need to keep your repayment costs manageable.
- Repayment terms: While most business loans have terms of two or fewer years, long-term business loans give you more time to repay your loan. Just keep in mind that the longer your term, the more you’ll pay in interest over time. In general, it’s best to choose the shortest term your business can afford to avoid excessive interest charges.
- Eligibility requirements: Remember that you’ll generally have to meet underwriting criteria for credit score, time in operation, annual revenue and more to get approved. However, exact requirements can vary by lender.
- Fees and penalties: Some lenders charge fees, such as origination fees and late fees. These can add to your overall costs.
- Collateral requirements: Consider whether a secured or unsecured loan will better suit your needs. If you opt for a secured loan, be prepared to offer business assets to act as collateral. Also remember that you’ll likely have to provide a personal guarantee.
- Funding speed: Some lenders offer faster processing times than others. If you need the funds right away, you’ll want to work with a lender that offers quick funding speeds.
How to apply for a long-term business loan
If you’re ready to apply for a long-term business loan, follow these steps:
1. Check your credit
Lenders will review your personal credit history (and business credit, in some cases) when you apply for a loan — so it’s a good idea to see where you stand before you apply. You can use a site like AnnualCreditReport.com to review your personal credit reports. To check your credit score, you can use an online credit-monitoring service or see if it’s available through your bank or credit card issuer.
Your business credit report is available through several third-party companies, including Dun & Bradstreet as well as the credit bureaus Experian and Equifax. However, accessing it might come with a fee, depending on the service you choose.
Tip: If you find any errors in your personal or business credit reports, report them to the appropriate credit bureau to potentially boost your credit score.
2. Evaluate your borrowing needs
Consider what type of expenses you need to cover to determine what type of business loan is right for you. For example, you might opt for a general term loan or equipment financing. Also estimate how much you need to borrow and what you can reasonably afford to repay.
Tip: Use our business loan calculator to see what will fit comfortably in your budget.
3. Compare lenders and pick a loan option
Before you apply, take the time to compare your options with as many business loan lenders as possible. This way, you can find the right long-term loan for your needs. Consider important factors like interest rates, loan amounts, fees and eligibility requirements when weighing your choices. After you’ve done your research, pick the loan option that works best for you.
Tip: Some lenders allow you to get pre-qualified with only a soft credit check that won’t hurt your credit score. This will give you an idea of what rates and terms you might get approved for if you apply.
4. Prepare your documentation
Gather all necessary documents, such as business and personal tax returns, financial statements, business licenses and a business plan.
5. Apply for financing
After you’ve gathered your documentation, you’ll need to submit a formal application. Depending on the lender, you might be able to complete the full application process online while other lenders require you to discuss your options with one of the company’s loan specialists.
6. Get your funds
If you’re approved, the lender will have you sign a loan agreement before the funds are disbursed. You might get your funds as soon as the same or next business day, depending on the lender.
Alternatives to a long-term business loan
While long-term business loans are a popular financing option for many businesses seeking stability and extended repayment periods, there are alternative financing solutions that could be more suitable depending on your business’s needs, financial health and growth stage. Some options to consider include:
- Business line of credit: If you prefer flexible access to a revolving credit line, a business line of credit could be a good choice. With this option, you can borrow as needed and will pay interest only on the amount you use.
- Short-term business loan: A short-term business loan will generally have a repayment term of two or fewer years. This can be ideal for businesses that need quick funding for immediate needs.
- SBA loan: The Small Business Administration (SBA) backs these loans, which in turn reduces the risk for lenders. Because of this, SBA loans can come with more competitive rates and terms compared to traditional business financing.
- Business credit card: If you need to cover small, routine expenses, a business credit card can be a good choice. Some cards also provide rewards and perks to help you build business credit. However, you can’t charge some types of business expenses, such as inventory and payroll.
- Invoice financing: With this option, you’ll sell your unpaid client invoices to a factoring company in return for a fee. The company will be responsible for collecting client payments for you, and you’ll get an advance on the amount you’re owed. While this can help with cash flow, you’ll lose some of your funds to the interest and fees charged by the factoring company.
- Personal loan for business use: A personal loan can be a viable option for sole proprietorships or startups without an established business credit history. Note that many personal loan lenders don’t allow their loans to be used for business purposes. However, others do, such as Upstart.
- Angel investors or venture capital: These funds are investments from individuals or firms in exchange for equity in the business. If you have a startup with high growth potential, working with an angel investor or venture capitalist could be worth pursuing.
Which is right for your business’s needs? Business loans vs. business lines of credit
Frequently asked questions (FAQs)
The longest term for a private business loan is generally 10 years — though maximum terms will vary depending on the lender. Government-backed SBA loans, on the other hand, sometimes come with longer terms, depending on the type of loan. For example, you could have up to 25 years to repay an SBA 7(a) loan for real estate.
Yes, it’s possible to get a business loan with a 10-year term. However, remember that terms vary by lender, and you might have to meet more stringent requirements to qualify for the longest terms.
While lenders generally don’t offer 30-year repayment terms on business loans, you might be able to negotiate a longer term with your lender if you’ve been approved. For a successful negotiation, you’ll likely need strong credit and a well-established business history. You might also need to offer collateral to secure a longer term. You might also have an easier time negotiating with a lender you’ve previously worked with, provided you were a good customer.
Interest rates on long-term business loans vary by lender. As of Feb. 7, 2024, the average rate for a business term loan ranges from 8.49% to 36%. Remember that your rate will also depend on your creditworthiness, market conditions and other factors.
The average term of an SBA loan varies by program. For example, SBA 7(a) loan terms extend up to 10 years for equipment, working capital or inventory, but they can range up to 25 years for real estate. SBA 504 loans are also available for up to 25 years.
