Applying for a Term Loan Online

A business term loan can provide you with many options. When you need to purchase equipment for your business, purchase a new business vehicle or simply need working capital for the operation of your business,  the term loan can help. A business term loan is generally a fixed rate loan made to a small business and the maturity terms are usually between one to ten years. Depending on the size and purpose of the loan, some banks may extend the terms of a term loan for up to 20 years. Before you apply for a term loan, familiarize yourself with the process and learn about some of the basic steps that are involved in applying for a business term.

Pre-Application Considerations

Before applying for a business term loan, sit down and consider whether your small business meets the general requirements for the loan. For example, many banks will not consider a small business that is relatively, without a personal guarantee from the owner. Therefore, if your business is relatively new, take your personal credit under consideration.

Also, carefully consider all restrictive terms of the loan. For example, if you are approved for a business term loan, the bank may require that you refrain from other types of business financing until the loan is completely paid off. Moreover, your business may be required to allow the bank access to sensitive business financial information and banking information and many lenders will require that you provide quarterly updates as to the financial health of your business.

Applying for a Term Loan Online

There are many banks that make applying for a business term line online very quick and convenient. In order to apply for a business term loan online, you simply need to visit the website of the bank that you want to apply with and complete the online application. Once the bank receives your application, the bank will respond to your request and require additional supporting documentation and information.

Documentation Needed for Term Loans

In addition to your online application, you will generally be required to forward certain types of documents to the bank before the loan is approved.

  • business licenses
  • lease or mortgage agreements
  • financial statements
  • profit and loss statements
  • bank statements from your business checking account

A business term loan can help you with many types of business financing needs and can help you manage your business budget. The approval process for business loan term loans can stringent and require rigorous on your part.