Are you shrugging your eyes and struggling to figure out how many years can you get a business loan for?
Business loans come in many shapes and sizes and can vary from 1 year to about 30 years depending on the program you go into. For example, shorter-term loans called “Unsecured Term Loans” that don’t require you to put collateral up or merchant cash advances come with 1-2 years or in some cases 2-10 years. These types of loans and advances also come with about 3-11 months, and then you have longer-term loans where you may need to offer up collateral to get them but can stretch out to about 30-year terms (most commonly the SBA EIDL Loan).
That’s a wrap, right? Not so fast Speedy Gonzalez! Getting a business loan is not as black and white or batman and robin as you think and here’s what I mean…
You may have guessed that getting longer terms is best and while you should stretch for longer years, the goal should be to be in the least amount of debt for the least amount of time possible so here’s what you do…
You ONLY use the funds you need. Tada, now we can go home - WAIT! What if you were shown “Which” services have what terms and which is BEST for you right now and in the future?
Would that help you save time and the energy of having to sift through all the noise, fluff, theory, and people out there trying to manipulate and scam you to get a business loan for their benefit?
I “Michael Granados” a business loan broker expert (With Viral Funding Solutions being my brand) who’s helped business owners of ALL industries get funding will be pulling back the curtains for you to show you how REALISTIC it is for YOU to get a business loan with longer terms, where you can go and get the RIGHT loans(s) without being tricked and fooled and so much more so you can finally continue to build, grow, expand, and even get out of a tight pinch.
If you’re ready to jump in with both feet, let’s get into it.
How Many Years Is A Business Loan?
The lifespan of a business loan ranges from 1 year to 30-year terms but don’t forget that you can also get a range of 3 months to 11 months that are great for shorter-term investments and shorter-term ROIs as well as recovery.
Have you heard of the SBA EIDL Loans? Okay okay, who hasn’t, right? Well if you’ve been living under a rock…
The government released one of its largest programs ever where you can get 3.75% interest for-profit and 2.75% non-profit for 30 years - isn’t that nuts?
These government-backed loans were distributed for businesses impacted by COVID and needed recovery money used for things like payroll, business expenses, and to get back on your feet.
Have you heard of PPP Loans?
PPP or Payment Protection Program is a loan that provides businesses with the right resources to maintain their employees, hire back employees who may have been laid off and more…
And these loans are for 5 years at 1% interest.
How Long Is The Average Term Of A Business Loan?
The average term of a business loan is honestly between 1-2 years and here’s why it’s shorter…
Think about ALL of the businesses and small businesses in the U.S alone who get turned down by the bank every year and you’ll know that over 80% of small businesses get declined, so what does that mean?
More business owners turn to alternative lending (HINT HINT: The place you’re in now - The Internet) and most of them already don’t have the right “Fundability” details which include:
- Time in business
- Business Credit
- And so on
OH, did I forget Collateral? So the average small business owner may or may not have collateral and also may have challenging credit so that leaves one area open…
Cash-Flow. Based on revenue, cash, deposits, checks and so on, most business owners end up getting between 3-11 months and 1-2 years unsecured because of it. Call this “Hard Money” if you want with Medium to high-interest rates…
We’re talking between 1-3% per month or if it’s a cash advances between 3-11 months or so it’s a factor rate or total payback between 1.19-1.69 or in other words 19%-70% interest. But here’s why Interest isn’t your problem…
Your lack of cash flow and ability to “Strategically” use your funding is holding you back! You see, many business owners get fixated on interest rates and forget the most important part…
Trying to get a longer-term. So what you should be focused on instead is getting a longer-term so you can drop your repayment on a:
Repayment. But it’s NOT always about getting a longer-term to but about this…Understanding YOUR use of funds.
You may have a project or projects that you see double, tripling and even quadrupling your bottom line in the next few months and you don’t see a purpose for having an extended amount of time to stay on your loan…
So for example You have a marketing/advertising objective as well as getting new equipment and inventory…
Your goal is to double your last month's revenue and you know your business well enough that in 6 months' time you’ll FULLY hit your goal so you wouldn’t necessarily need an additional 4-5 months, are you following me?
And then there are moments when having a longer-term makes sense and your ROI will be produced in the long term as opposed to the short-term or it could be both. What about survival money?
Getting funds for COVID Relief, business expenses, payroll, debt consolidation, refinancing, etc. are understandable uses for funding and you can get shorter and longer terms but it ALL comes down to a few things…
- Can you repay back the loan?
- Do you have ENOUGH of a reason to get longer terms?
- Do YOU have the right “Fundability” details?
Read the last question up above again. It comes down to your ability to have the right fundability details to approve you for better terms at better rates with the amount of funding you need.
Here's a video I made for YOU that you MUST watch about an SBA EIDL Loan alternative that will show you the A-Z "REAL" qualifications it takes to get business funding in the real world outside of EIDL Loans:
Can You Get A Business Loan For 20 Years?
As you’ve already seen in this article, of course, you can BUT the real question is this…Can YOU get a business loan for 20 years?
Continuing with the last few points you read, to get a business loan for 20 years, you will need to have:
- An EIDL Loan
- Real Estate Purchases like Commercial Real Estate
These are generally the ONLY two scenarios where you’d get such a long term.
What Is The Maximum Tenure For A Business Loan?
The maximum tenure for a business loan is 30 years and that’s with the SBA EIDL Loan that at this moment has been exhausted.
Now that you know "What is the maximum tenure for business loan", let's look at where you can get a loan for your business.
Where Can You Get A Business Loan?
Now that you know how many years you can get a business loan and what it Takes to get longer terms, let’s help you get one.
There are LOADS of options offline and online, it’s kind of like having a Mcdonald's in a short radius of where you live and a Starbucks in every corner (I live in Washington, so we see them in corners here all the time lol)...
However, you MUST be careful about Which Institutitions, Lenders and marketplaces you go to because not all are created equally. So here’s my first recommendation…Start with your bank. If you can qualify for a traditional bank loan, then go there since you’ll get the best rates and terms BUT if you can’t then…
I recommend “Fin-Tech” companies. These FinTech companies have made it so much easier for you to streamline the process of getting a loan and most have an online digital application process so you can safely and securely upload your necessary documentation online like:
- Bank Statements
- Voided Check
- Copy of your driver's license
- Tax Returns
Sure, there are still some PDF applications and even come with both but for the most part, it’ll be an online application and process so here’s where I recommend going:
By far, my favorite is Bitty Advance because you can get up to $35,000 or $25,000 same-day instant approval funding and there’s even a way for you to get up to $2,000,000+ Incredibly fast funding without collateral, no hard credit checks, and bad credit is acceptable (as low as a 550 FICO!).
If you’d like to learn more about how to get super fast and superior business funding with Bitty Advance, check out my in-depth review right here:
Conclusion and Your Next Steps
Do you have a clearer vision now that you don’t only know how long you can get a business loan for but how long YOU can possibly get one for?
Be careful of all the noise on the web and offline - You’ll always hear how you can get a loan with your bank or how there are these government-backed loans that can get you 30-year terms…
But they're either not easy to get or paint a FALSE Picture. Loans like the EIDL have created a huge problem on the fact that it’s programmed so many business owners to believe there are how business loans are supposed to work everywhere…
But little do you and they know that’s not how all loans are created, especially when you get into private lending options. So the best thing you can do is educate yourself which you can leave that up to me to help with and find the best option for yourself…
And it starts with checking out my #1 Recommended non-collateralized business funding option right here and all others as well: