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Term Loan
A fixed lump sum repaid over an agreed term.
A term loan provides a one-off lump sum repaid with interest over a set period — typically 1 to 7 years. It's one of the most straightforward forms of business finance, ideal for specific investments or capital injections.
Best Suited For
- Expansion or growth investment
- Equipment or technology purchase
- Hiring and workforce expansion
- Working capital for a specific project
May Not Be Suitable If
- Ongoing or fluctuating cash flow needs
- Very short-term funding requirements
- Businesses with no demonstrable repayment capacity
Typical Terms
- Amounts: £25,000 – £500,000+
- Terms: 1–7 years
- Fixed monthly repayments
- Can be secured or unsecured
Key Eligibility Requirements
- Minimum 2 years trading (unsecured); 1 year if secured
- Good credit history — CCJs/defaults may limit options
- Demonstrable repayment capacity from trading income
- Up-to-date accounts or management accounts
- Personal guarantee often required
- Property or assets as security improves rates and availability
What Lenders Will Ask You
1.What is the specific purpose of funds?
2.What is your annual turnover?
3.Do you have property or assets as security?
4.What is your current borrowing?