Best Long Term Business Loans

Compare long term business financing options and find the best rates without impact on your credit.

Enter loan amount
Our Lending Partner Network
Long Term Business Loans

How to Get a Long Term Business Loan

Almost every business needs to seek outside finance at some point. Even if it has the cash, it is often unwise to tie up working capital when a big expenditure is needed. When looking to expand or upgrade equipment, for example, most companies look to banks or alternative lenders to provide the funds rather than commit working capital.

Loans come in many flavors but long-term loans are a popular option owing to the favorable terms and interest rates.

Applying for a long term business loan is fast and easy:

Fill out a simple and fast online application in just minutes

Compare best business loan rates and choose your offer

Receive funds towards your business needs

Checking rates won't impact your credit

Compare Long Term Business Loans

What is a long-term commercial business loan?

In this context, repayment over anything more than a year can be regarded as long-term, though a long-term loan is usually more than 5 years. The main benefits of such a business loan are low interest and affordable monthly payments because of the time scale.

For those reasons long-term business loans are popular but often carry hard to meet qualification targets.

Best long term business loan options

SBA (7a loan): best for long term business loan needs (up to 25 years)

SBA 7a

SBA 7(a) loan

Funding: Borrow up to $5,000,000
Minimum Credit Score: 650
Best For: SBA loans
Funding turnaround: Varies.

The SBA 7(a) program features lenders such as Wells Fargo in their network and provides capped interest rates and long repayment term flexibility. Term loans and lines of credit access available. Typically, collateral will be required with a personal guarantee. Funding times vary and may be longer than most other lenders.

Funding Circle: best for long term needs up to 5 years

Funding Circle

Funding Circle

Funding: Borrow $25,000 to $200,000
Minimum Credit Score: 700
Loan term: 6-12 months
Funding turnaround: 24-48 hours

Funding Circle offers affordable business loans with interest rates lower than alternative lenders with monthly repayment schedules for borrowers with good to excellent credit scores.

Credibility Capital: best for long term needs up to 5 years

Credibility Capital

Credibility Capital

Funding: Borrow up to $500,000
Minimum Credit Score: 650
Best For: Term loans
Funding turnaround: Varies.

With Credibility Capital, borrowers with strong credit can obtain small business loans with attractive rates. A personal guarantee along with a business lien and revenue may be required to qualify. Note: This lender provides funding for all states except for North Dakota, Nevada, South Dakota, Vermont.

How does a long-term business loan work?

A long-term business loan operates like any other business term loan. The lender agrees to supply a business with a fixed amount of money which is repaid, plus interest, over the term of the loan in regular (usually monthly) installments.

What period is regarded as long-term depends on the loan provider, but anything less than a year would normally be regarded as short-term. Some lenders would describe loans for 1-5 years as medium-term but they can be treated in the same way as long-term loans.

Depending on the amount and purpose of the loan, a long-term loan may be repaid over anything from 12 months to 25 years.

Because the terms are so generous and the interest so low, long-term loans are ideal for spreading the costs of major investments like real estate, capital equipment, and growth.

That being said, lenders offering long-term loans usually require high credit ratings, excellent trading records, and longevity from their applicants. Such loans also generally demand some form of collateral such as real estate or other assets plus personal guarantees. However, some alternative lenders may have more relaxed standards.

What are the different types of long-term business loans?

  • Online business loans: Online loan providers are a good option for long-term loans in the $5,000 - $500,000 category. Though qualification for an online business loan may be a little easier than for a traditional lender, an excellent credit score and a trading history of a minimum of 2 years are fairly standard. Though not easy to qualify for, most online providers have a straightforward application process along with fast approval and quick access to the funds.
  • SBA loans: The Small Business Administration does not itself provide loans but has several loan programs it runs in conjunction with approved financial institutions. These loans, particularly the 7(a) and 504 loans, are highly sought after because of their long terms and low-interest rates – typically 6-10%. However, they are difficult to get. A credit score of above 640, strong financial records, plus at least two years of trading are mandatory. And if you do get approved, the whole application and funding process can take more than two months.
  • Bank loans: Traditional banks are used to offering long-term loans to businesses but like SBA loans they are difficult to qualify for and relatively slow to fund. However, if applying to the bank that handles your day-to-day financials, then there should be a business relationship that helps with the process.

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


  • Flexibility - Once you have the money you can spend it how you like, on machinery, real estate, whatever you need. The loan is not given for something very specific.
  • Reasonable interest rates - Long-term loans typically carry low-interest rates and good terms making them affordable.
  • Fast funding - Though some banks and SBA loans may take a while many long-term loans are fast to process and fund.
  • No sharing of profits - A lender is not an investor in the true sense and doesn't expect a share of the extra profits a loan should produce.


  • Difficult qualification - Getting a low-interest, long-term loan requires a great deal of the borrower in terms of fiscal probity.
  • Lenders may not be willing to loan you as much as you want - though loan providers may approve your application they may not think you need as much as you are asking for.
  • Meeting the payments may become difficult - large loans, even at low-interest rates, require relatively large repayments that may become a burden if you suffer a downturn in trading.

Long-term business loan vs. Short-term business loan: What’s the difference?

The benefits of a short-term loan are that they are often is easier to qualify for than a long-term loan. Short-term loan providers generally require lower credit scores and a shorter trading history than long-term providers. This comes at the cost of higher interest rates and a repayment period of months rather than years.

While other forms of borrowing may be appropriate for inventory purchase or equipment leasing, for instance, long-term loans win out for major investment.

How much does a long-term business loan cost?

The APR for long-term loans is usually 4-12%, though can be higher.

Quick links

Business Loans

Ready to apply for long term business financing? Get started today.

Need help finding the right loan?

No worries, we've got you covered! Compare personalized loan options in just minutes without impact on your credit score.

What term can you take out a long-term business loan for?

Depending upon the amount and purpose of the loan, anything from 1 to 25 years or even more is offered by long-term loan providers.

What is the best long-term loan for a small business?

Which loan or loan provider is best for you depends on your business and its financial needs. There is no one solution for everyone. The only answer is to do your research well – start by looking through the loans in our comparison tables to find the best rates.

What are the requirements to qualify for a long-term business loan?

Most suppliers of long-term loans require a personal credit score of over 600, 2 years or more in business, and over $100,000 in annual revenue. There may be other requirements as every lender is different. Make sure you know what is required before you make your application.

Long Term Business Loan Calculator

How much do you need to borrow?


Total Payment


Total Interest


Monthly Payment


Ready to get funded?

Compare personalized business loan rates from top lenders with no impact on your credit, ever.

Find Your Personalized Rate

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

Having bad credit will limit your options and the amount you will be able to borrow. Some alternative lenders may help you with a loan but be aware that such loans may well carry high-interest rates. It may be better to look at other forms of finance like invoice factoring, a merchant cash advance, or equipment leasing while you build your credit score.

How to apply for a long-term business loan

Before you apply for a loan make sure you know what information you will need and that you have it to hand. This will include all your business and personal financial records, tax returns, current debt, a business plan, and more. Alternative lenders usually make the application process simple and reach an approval decision quickly, though long-term business loans may require more information than loans with shorter terms. Most loan applications can be saved once you’ve started the application, so if you find you need another document, simply save your application and prepare it.

Shop and compare long term business loans online

The main takeaway is to shop around and compare the offers. Make sure you understand exactly what is being offered and how much it will cost. Acquiring finance is a serious undertaking. A good deal will enable your business to prosper but a bad one will bite you in the back. Start comparing the loans in our comparison tables today, and you’ll soon secure the funding you need to grow your business.

Compare Business Loan Offers

How Pasha Funding Works

How it Works
Apply in minutes

Get pre-qualified in minutes and compare offers from top lenders.

Choose your offer

Compare and choose an offer that works best for you based on your timeline and budget needs.

Get funded

After your loan is approved with the lender of your choice, receive your funds.

Popular Business Funding Options

Get Fast Funding For Your Business

Compare business loans from top lenders without negative impact on your credit score.

Business Loans By Credit

Business Loans for Fair Credit
Business Loans for Good Credit
Business Loans for Excellent Credit

*Disclaimer: does not function as a lender. The offers provided on this website are provided solely by third parties, who compensate for their inclusion. We would like to emphasize that will not contact you regarding any loan application resulting from the aforementioned offers, and we will never request financial information or any sensitive personal data via phone, email, or any other means.

REMEMBER, it is essential to exercise caution and never share any financial information or sensitive personal data over the phone or via email without independently verifying the identity of the company initiating the communication first!