Term loans.

A term loan is a lump sum repaid in scheduled monthly payments over a fixed period. It is the clean monthly structure most operating businesses should be carrying, and it is the destination facility for most of the refinance work we do.

How the process runs

1. File assembly. Financials, returns, bank statements, and a debt schedule, organized before any lender sees them.
2. Placement. The file goes to lenders matched to the profile: banks, SBA lenders, and non bank monthly pay lenders.
3. Term selection. Competing proposals compared on rate, term, amortization, collateral, and guarantee requirements.
4. Close. Bank and SBA processes commonly run 2 to 6 weeks from complete file; non bank lenders often fund in days.

Typical terms in the market

Repayment periods commonly run 2 to 10 years depending on use and collateral, with equipment and real estate supporting the longer end. Bank pricing is typically tied to prime or fixed at underwriting; non bank monthly products price higher in exchange for speed and flexibility. SBA 7(a) facilities run up to $5,000,000 with the longest terms available to most small businesses. Personal guarantees are standard for closely held companies.

Documents you will need

1. 2 to 3 years of business tax returns and financial statements.
2. Interim year to date profit and loss and balance sheet.
3. Business debt schedule.
4. 6 to 12 months of bank statements.
5. Personal financial statement and returns for owners of 20 percent or more.

What lenders look for

Debt service coverage of roughly 1.25 times or better, deposit health, credit history, collateral, time in business, and a use of proceeds that makes the loan safer, not riskier. A file that computes its own coverage before the lender does gets priced like it knows what it is doing, because it does.