Multi Year Term Loan
Get access to revolving funds when you need it most
October 19, 2021
How much are you looking for?
$25,000 to $5,000,000
2 – 5 Years
5.99% – 18.99%
as little as 48 hours
What is a Multi Year Term Loan?
A Multi Year Term Loan is a business term loan that has a repayment schedule over 2 to 5 years. A term loan that amortizes over several years has low monthly payments and provides better ongoing cash flow for day to day operations. In order to qualify for a Multi Year Term Loan the business must have owners with good personal credit, strong business trade credit, and good historical cash flow.
The terms and conditions of a Multi Year Term Loan are going to depend on the overall strength of the business and its’ owners. Underwriting will look at the enterprise risk of both the company, which includes; operating history, trade credit, cash flow, sales trends, deposit consistency, etc. and the owner, which includes; personal credit score, management bio’s, background checks, etc.
What can a business line of credit be used for?
Bulk inventory discounts
Business growth and expansion
Refinancing or consolidating existing debt
Hiring new employees
Purchasing new or used equipment
What are the benefits of a multi year term loan?
No upfront or application fees
Low monthly payments
Limited documentation requirements
Quick and easy process
What are the best industries for Multi Term Loan?
A Multi Year Term Loan can be used by industries that sell directly to other businesses or industries that sell directly to consumers. Based on the wide variety of ways that the money can be used and the limited restrictions or covenants that coincide with this type of financing, a Multi Year Term Loan is a perfect fit for businesses with strong credit profiles.
How does the Multi Year Term Loan process work?
The application process to apply for a Multi Year Term Loan is easier then applying for both Asset Based Loans and SBA Loans. Although there is less paperwork and lower requirements, the application process still involves company financials and tax returns to be available for a lender to review.
Multi Year Term Loan Case Study
We provided a multi year term loan for a transportation company located in Arizona. The company had 8 trucks in their fleet which were financed over 5 years and 75% paid down from the original loan amount. With the financing nearing the end of its’ term, there were repairs that needed to be made on the trucks as well as short term debt that could be refinanced over a longer time period. Our team was able to provide a 4 year term loan for $350,000 which reduced the monthly payment from $21,000 per month down to $9,000!
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