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Long Term Small Business Loans For Good & Bad Credit

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LOAN AMOUNTS
Up to 24 Months
INTEREST RATES
Varies Depending On Lender
REPAYMENT TERMS
Varies Depending On Lender
TURNAROUND TIME
As soon as the same business day upon approval
Pros
Cons

Long Term Small Business Loans For Good & Bad Credit

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Lenders that offer long term business loans for bad credit

Bad credit can get in the way of obtaining a long term business loan. While you may know that improving your credit score can increase your chance of approval, you probably also know that’s easier said than done. When it comes to running a business, opportunity cannot always wait. Finding the right lender can play a critical role in qualifying for a long term business loan with bad credit. You’ll need to find a lender that you not only meet the requirements for, but one that also meets your needs. 

#1. Fora Financial 

  • Best for online term loans for bad credit 
  • Minimum credit score 500
  • Repayment period up to 15 months

Fora Financial offers small business loans and merchant cash advances. On term loans Fora Financial charges a factor rate rather than an interest rate. Additionally, they charge an origination fee too. While loans may be more expensive, lending requirements are lenient. In addition to a low credit score requirement, Fora Financial also has low revenue requirements compared to other lenders. For these reasons and more, Fora Financial is a top choice for startups that need a business loan. When borrowing with bad credit you can expect to pay more for a loan. Before applying, gather documentation as Fora Financial will likely request plenty of it. 

#2. Taycor Financial 

  • Best for bad credit equipment financing 
  • Minimum credit score 550 
  • Repayment periods 12-84 months

Taycor Financial offers a variety of lending products for businesses. With a low minimum credit score requirement and broad offering, Taycor can help more business owners get the funding they need. For term loans and lines of credit, Taycor uses factor rates which can be harder to compare. Another downside of factor rates is there is no benefit from paying off your loan early. Taycor can work with startups, but funding times can be slow. 

Lenders that offer 2 year business loans

Sticking with short term business loans can be a smart solution. With a shorter commitment you can hopefully keep up with payments better. On the downside, you might not be able to borrow as much and payments may be higher. Consider the needs of your business to determine if a 2 year business loan meets them. When ready, consider accessing 2 year business loans through OnDeck, a top rated lender. 

#1. OnDeck 

  • Best for fast, short term financing
  • Minimum credit score 625
  • Repayment periods up to 24 months

OnDeck is a reputable source for business loans online. While their requirements may be more strict compared to other sources they might not ask for as much documentation. Plus, they can provide funding within the same business day. With business lines of credit and term loans available, business owners can explore short term loan options with OnDeck. 

Lenders that offer 10 year business loans

Long term business loans may cost more, but they generally come with higher loan amounts. Before obtaining a long term business loan, consider the worst and best case scenario. A lot can happen in 10 years. If you’re confident it’s the right solution, check offers from the following lenders. 

#1. Kapitus 

  • Best for long term, fast funding
  • Minimum credit score 625 for business loans 
  • Repayment periods up to 20 years 

Kapitus can offer business owners a variety of funding solutions. As both a direct lender and bridge to other lenders, Kapitus can offer an array of options. From long term loans to equipment financing, explore options with Kapitus. 

#2. SmartBiz

  • Best for more established businesses
  • Minimum credit score 660
  • Repayment period 120 to 300 months

SmartBiz is a competitive lender, but prefers to work with more established businesses and business owners. With a 2 year minimum business requirement and revenue requirements, SmartBiz may not appeal to startups. As an AI platform, SmartBiz connects businesses with SBA lenders to help them get the funding they need.

What is a long-term business loan?

Long-term business loans come in many different forms, but share the same underlying concept. A long-term business loan is usually a larger loan amount with an extended repayment or draw period. Most consider a long-term business loan any loan with a repayment period over one year. Long-term business loans can be used for a variety of business expenses and growth operations. Determine your needs and define your goals. When you’re ready, visit mySMBscore to start working toward securing a competitive long-term business loan. 

Long Term Lenders

  • OnDeck - up to 24 month terms - bad credit ok
  • Rapid Finance - up to 18 month terms
  • Kapitus - up to 20 year terms
  • Fora Financial - up to 15 month terms

How do long-term business loans work?

Long-term and short-term business loans are very similar, with the exception of the repayment period. Borrowers can apply with a lender to get a lump sum of cash up front, which they’ll then repay over a period of time on a fixed interest rate. With a long-term loan, the payments include both principal and interest stretched out longer, usually making monthly payments smaller than with a short-term loan. 

What's the longest term for a business loan?

The available length of the business loan term can vary by each lender as well as what your business qualifies for. While most long-term loan lenders allow for up to 10 years to repay the loan, it wouldn’t be uncommon to find a lender who can offer a 25-year repayment period. Repayment periods are heavily influenced by loan amounts and the borrower’s qualifications. High risk borrowers may receive shorter repayment periods because the lender does not want to drag out the risk.  

How can long-term business loans promote business expansion?

So, you’ve decided you want to expand your business? The early excitement of growing your business might have quickly been replaced by how you’re going to finance it. That’s where a long-term small business loan can help. Thanks to the smaller monthly payments over a longer loan term, you can get a loan that can allow you to keep more capital in your business while growing sales and maintaining healthy cash flow. Without business loans, most businesses flatten out. Take risks and commit to expanding your business as you’ve always dreamed. 

What credit score is needed to get a long-term business loan?

Keep in mind that there is no one-size-fits-all credit score that magically unlocks a long-term business loan. But the better your credit score is, the more likely you’ll be able to access the best rates and improve your chances of getting approved. If you’re applying with a bank or credit union, having a credit score of 700 or higher will likely get you approved. Anything over 740 is likely to get you the most competitive rates available. 

If your credit score isn’t 700 or higher, there are still options available for you. SBA loans are geared toward borrowers with scores below 700, with most SBA lenders looking for scores in the mid-600s to qualify. 

Remember, with a business loan your personal and business credit score can be evaluated. To familiarize yourself with your business credit score, visit mySMBscore. Within minutes you can unlock valuable insights that can help you qualify for a competitive business loan. 

Can you get a long-term business loan with bad credit?


While it can be more difficult to get approval for a long-term business loan when you have poor credit, there are still lenders out there who can accept applicants with scores in the 500s. Online lenders are usually the most lenient when it comes to applicants with poor scores, but keep in mind that you’ll be subject to higher borrowing costs which can make it difficult to break out of debt. While borrowing money responsibly can improve credit, you may want to work on improving business credit before applying for a loan. To access information that can help you make important decisions, such as this, visit mySMBscore. 

Tips to Compare Long-term Business Loans

Finding the right long-term business loan is a big decision since it can impact your finances for several years to come. If you’re shopping for the best long-term business loan, here are some tips to make the right decision: 

  • Understand what your personal and business credit score is - Knowledge is power when it comes to getting a long-term business loan. It’s crucial to understand your financial situation, starting with your credit scores. While it’s rather simple to get a copy of your personal credit score, finding your business credit score can be a bit more challenging. When you use mySMBscore, though, you get a personalized credit memo for your business so that you can see your business credit report through the eyes of a lender. This can help you understand what you might be eligible for and how you can improve your score.

  • Compare fees and funding timelines - The most important thing to do when applying for a long-term business loan for your small business is to shop around and compare rates and fees. Since each lender and loan product will have different rates and options, it’s important to see what you’re eligible for across several different lenders. This way, you can review and select a loan that works best for you and your business in the long run. 
  • Be patient - Business ownership requires plenty of patience. You’re probably excited to take things to the next level, but invest time into comparing offers and positioning your business to qualify for competitive offers. By taking advantage of online platforms such as mySMBscore, you can even compare offers from top lenders all in one secure platform.

Types of long-term business loans

As you’re exploring long-term business loan options for your small business, here are some of the options you’ll have: 

  • Bank loans - Traditional banks can often offer long-term business loans with competitive rates, but keep in mind their repayment lengths are usually capped at around seven years. Explore the various products they can offer to determine if your needs can be met.

  • Online bank loans - If you have below-average credit or need cash fast, an online lender can likely help. Some may say they often charge higher rates, but if you leverage the competitive online marketplace properly you can find a competitive business loan online. Plus, the requirements are usually less strict.

  • SBA microloans - Nonprofit community lenders offer government-backed microloans that have borrowing periods of up to six years. While the overall funding amounts are lower, they could be beneficial for someone just starting their small business and wanting longer payment terms.

  • SBA 7(a) loans - Looking for a large amount of funding with a long repayment period? Check out SBA 7(a) loans. With some of the lowest interest rates, the average repayment period for these loans is ten years and can go up to 25 years if you’re purchasing real estate or other major investments. Keep in mind these are usually on a variable interest rate, which could make it difficult to budget over the long term.

  • SBA 504 loans - Similar to an SBA 7(a) loan, these loans offer large amounts of funding over a long repayment period. The biggest difference is these are on a fixed interest rate.

Long-term business loans vs. short-term business loans

The biggest difference between long-term and short-term business loans is the length of time you have to repay the loan. While most short-term business loans will cover smaller expenses like materials, inventory or changes in your cash flow, long-term financing is meant for larger, more expensive purchases. Since the lending amounts are higher, most small business owners need more time to pay them down and afford the monthly payments. 

How much do long-term business loans cost?

Each lender will have different interest rates and fees associated with their long-term small business loan product. You might have to put a downpayment or offer collateral to qualify, and you can expect starting interest rates to be around 6.5% or higher. When it comes to cost, pay attention to rates and fees. When extended an offer, check for the total loan cost. It’s important to compare on the basis of total costs, not just monthly payment. 

What are the pros and cons of long-term business loans?

Long-term business loans for your small business can be extremely helpful to grow and invest in your long-term goals. But, as with any debt, it’s important to understand the pros and the cons so you can smartly choose to move forward. 

Pros: 

  • Longer repayment period can lower monthly payment
  • Opportunity to grow business without draining cash
  • Regular repayments can help build your business credit score. 

Cons: 

  • Total loan cost may be higher
  • Funding periods can take longer
  • Additional business debt that can impact the bottom line 

How to qualify for a long-term business loan

You can expect each lender to have different qualifications based on what you’re applying for and how much money you need to borrow. But ultimately, it can be helpful to meet these requirements to improve your chances of qualifying: 

  • An established and strong business credit score
  • A personal credit score of around 700 or higher
  • At least two years in business
  • A strong annual revenue

If you want to strengthen your chances of qualifying for a long-term loan for your small business, mySMBscore can help. You can review a business credit memo on our site for your business, giving you insights and analysis on your business’s key financial metrics and areas for improvement. 

How to apply for a long-term loan

Applying for a long-term business loan is similar to applying for other types of financing. You’ll need to take the time to research the lender you think will best fit your financing needs. When you use mySMBscore, you can get prequalified and compare loan offers from over 1,200 organizations to find your perfect fit. Be prepared to submit paperwork confirming your annual revenue, tax statements, business plan, profit loss statements and other financial documents relating to your business. 

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