Business Term Loans

What Is a Business Term Loan?

A business term loan provides a specific amount of financing that is generally repaid over an agreed period according to the lender’s terms. Depending on the lender and financing program, repayment terms, rates, fees, collateral requirements and qualification standards can vary significantly.

What Can a Business Term Loan Be Used For?

• Business expansion
• Purchasing equipment
• Renovations and improvements
• Inventory and materials
• Hiring and workforce expansion
• Marketing initiatives
• Technology investments
• Opening an additional location
• Acquisitions or other growth opportunities
• Refinancing eligible business obligations

How It Works

1. Tell us what your business needs. Complete the Clear Water funding request and provide basic information about your business, financing needs and estimated credit profile.
2. Explore potential options. Clear Water helps connect you with independent lenders and funding providers whose products may fit your business profile.
3. Review the terms. If financing options are available, carefully review the amount, repayment schedule, interest rate or financing cost, fees and other terms.
4. Choose what is right for your business. You decide whether an available financing option makes sense for your company.

What Do Lenders Consider?

Qualification requirements vary by lender, but factors may include time in business, business revenue, cash flow, personal and/or business credit profile, existing financial obligations, industry, requested loan amount and the purpose of the financing.

Some lenders may also require collateral or a personal guarantee depending on the loan program and borrower profile.

What Information May Be Requested?

• Business and owner information
• Recent business bank statements
• Business tax returns
• Financial statements
• Identification
• Business formation documents
• Existing debt information
• Details regarding the intended use of funds

Why Consider a Business Term Loan?

Predictable repayment structure. Knowing the repayment schedule can make budgeting easier.

Defined financing amount. Term loans can work well for a specific project or investment.

Potentially longer repayment periods. Depending on the program, repayment may be spread over a longer period than certain short-term funding products.

Business growth opportunities. Financing can allow a company to make investments today that might otherwise require months or years of accumulated cash.

Things to Consider

Before accepting a term loan, review the interest rate or financing cost, repayment frequency, length of term, origination or other fees, prepayment provisions, collateral requirements and any personal guarantee requirements.

Frequently Asked Questions

How much can I borrow with a business term loan?

Available loan amounts depend on the lender, business revenue, creditworthiness, cash flow, financing purpose and other underwriting factors.

What repayment terms are available?

Terms vary considerably by lender and product. The specific repayment period and payment schedule will be disclosed by the lender before you accept financing.

What credit score do I need?

There is no single credit requirement that applies to every lender. Credit is generally one factor considered alongside revenue, time in business, cash flow and other information.

Will I need collateral?

It depends on the lender and loan product. Some financing may be unsecured, while other loans may require business or personal assets as collateral.

Does Clear Water Funding Source make the loan?

No. Clear Water Funding Source connects businesses with independent third-party lenders and funding providers.

Important: Clear Water Funding Source is not a bank or direct lender. We connect businesses with independent third-party lenders and funding providers. Financing is subject to provider approval, eligibility requirements, rates, fees and applicable terms. Submission of a funding request does not guarantee approval or an offer of financing.