Term loans come with a fixed payment structure that stays the same for the existence of the loan, and as a result allows businesses to budget based off that payment. Along with a fixed interest, there is also a fixed term that is substantially longer than other forms of financing. This is beneficial as an operator because you have a clear understanding of the terms, payment, and how you can optimize the capital provided.
Term loans provide all the capital up-front in one lump-sum payment. Typically, a business would use a term loan for a capital-intensive investment, project, or piece of equipment. The major difference between term loans and other forms of financing is that personal credit score plays as big a role as business financials. In addition, lenders typically ask for a business plan, a defined use of the business capital, and how it will increase sales and profits once deployed.
Highland Hill Capital’s loan program offers long-term and short-term financing solutions. With terms available up to 25 years, fixed or adjustable rates, and options for recourse or non-recourse sponsorship are available. Quick close options and 100% financing are available for qualified buyers.
- Short Term: 2 to 5 years – $30,000 to $350,000 (14 days to complete funding. Monthly payments rates starting at 9.99%)
- Long Term: 10 to 25 years – $500,000 to $25,000,000 (approximately 6 weeks to complete funding. Rates starting at 4.75%)