Expansion Projects
Opening new locations, adding production lines, or expanding your footprint to serve more customers.
Term Business Loans
What Is a Term Business Loan?
A term loan gives your business a one-time lump sum of funding that you repay over a fixed period—usually with fixed or structured payments. Think of it as a “project loan” for larger initiatives where you know roughly how much you need and how you’ll use it.
When Term Loans Make Sense
- You’re funding a specific, measurable project (expansion, build-out, acquisition, etc.).
- You prefer predictable payments over revolving credit.
- You don’t want to rely solely on short-term or daily-payment products for bigger needs.
- You’re consolidating higher-cost short-term debt into a more manageable schedule.
Common Uses for Term Loans
Build-Out & Renovations
Remodeling offices, retail spaces, restaurants, warehouses, or light industrial facilities.
Large Equipment & Technology
Major equipment, vehicles, or technology investments that don’t fit inside a credit card or small line.
Debt Consolidation
Rolling multiple short-term or higher-cost advances into one structured payment plan.
Example Scenarios
Scenario 1 – Adding a New Location
A successful restaurant wants to open a second location. A term loan helps cover build-out, kitchen equipment, and initial staffing. Payments are structured over several years to align with projected cash flow.
Scenario 2 – Manufacturer Increasing Capacity
A manufacturer lands a big contract that requires more machinery and staff. A term loan funds the equipment and training costs, enabling the company to ramp up production and meet new demand.
Scenario 3 – Consolidating Short-Term Debt
A business has several short-term funding products with frequent payments. A term loan consolidates them into one longer-term facility with a simpler monthly payment schedule.
What Lenders Look At for Term Loans
Term loans are often underwritten with a focus on **cash flow** and **ability to repay**. Lenders typically review:
- Revenue trends over the last 6–24 months.
- Business profitability and margins.
- Debt service coverage ratio (DSCR)—how comfortably your cash flow covers payments.
- Time in business and industry stability.
- Business and/or personal credit history.
What You May Need to Provide
- Recent business bank statements (often 3–12 months).
- Business tax returns and financial statements for larger amounts.
- Details on how the funds will be used (project summary or budget).
- Information on existing business debt.
- Basic ownership and entity information.
Term Loan vs. Line of Credit vs. Working Capital/MCA
Each product has a different role in your funding strategy:
- Term Loan: Best for defined projects and larger, one-time needs with structured payoff.
- Line of Credit: Best for ongoing, short-term, repeatable needs and cash-flow gaps.
- Working Capital / MCA: Often faster and more flexible, but typically shorter-term and higher cost—best for urgent situations or when other options aren’t available.
How Fast Finance Helps
Fast Finance looks at your big-picture goals—what you’re building toward, not just this month’s numbers. We help you:
- Determine an appropriate loan amount and term for your project.
- Compare offers from different term-loan providers.
- See how a term loan would affect your monthly cash flow.
- Decide whether to combine a term loan with a line of credit or equipment financing.
Planning a project or expansion and want a clear, predictable payoff schedule? Check my term loan options