Long-Term Business Loans to Grow Your Company

Long-term business loans are the way to go when you have an extra-large expenditure, such as a major piece of equipment or real estate, or if you’re looking to refinance high-cost debt. With a longer repayment period comes lower monthly payments, making an expansion or debt repayments easier to afford.

Here are a few of the best lenders for long-term business loans:

• 10-year term: SBA loans for expansion or refinancing debt
• 1- to 5-year term: loans for expansion

10-year term: SBA loans for expansion or refinancing debt — SmartBiz

SmartBiz provides U.S. Small Business Administration loans up to $350,000 that have a 10-year repayment term, which means monthly payments are much smaller than those of other loans. The typical payment on a $100,000 SmartBiz loan is $1,123 per month.

With an annual percentage rate of about 7% to 8%, the loans are also among the most affordable you’ll find among online alternative lenders, which makes them a great option for buying or renovating real estate, financing a large expansion or refinancing high-cost debt. There’s also no prepayment penalty for repaying the loan early.

SmartBiz loans, however, are only for strong, established businesses, due to the Small Business Administration’s rigorous requirements. Also, since these loans are backed by the SBA, more paperwork is required, so it could take several weeks to get funded (but typically is still faster than with traditional banks).

Loan amount: $30,000 to $350,000. APR: About 7% to 8%. Loan term: 10 years. Approval time: Within 7 days of submitting application. Read our SmartBiz review.

Get started at SmartBiz Before you apply for a SmartBiz loan, find out whether you meet the lender’s minimum qualifications. 600+ personal credit score 2+ years in business $50,000+ in annual revenue Personal guarantee required No outstanding tax liens No bankruptcies or foreclosures in last three years No recent charge-offs or settlements Must be current on government-related loans Do I qualify? ▾

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1- to 5-year term: Loans for expansion — Lending Club and Funding Circle

Lending Club offers term loans up to $300,000, repaid monthly over a period of one to five years. It’s a good option for a business expansion, such as purchasing new equipment or opening a new location.

Although the APR on a loan can be as low as 8%, it can reach 32%, depending on your credit score, annual revenue and the overall strength of your business. The loans do not carry a prepayment penalty, and you can repay the loan early if you want to save on interest.

Loan amount: $5,000 to $300,000. APR: 8% to 32%. Loan term: 1 to 5 years. Approval time: Funding as fast as 2 days but typically in a week or two. Read our Lending Club review.

Get started at Lending Club Before you apply for a Lending Club loan, find out whether you meet the minimum qualifications. 600+ personal credit score 2+ years in business $75,000+ in annual revenue Own at least 20% of the business No recent bankruptcies or tax liens Provide collateral for loans and lines of credit of more than $100,000 Lending Club is currently unavailable to borrowers in Iowa and Idaho. Do I qualify? ▾

Businesses that need to borrow more than $300,000 can turn to Funding Circle, which provides loans up to $500,000, repaid monthly over one to five years. The APR on Funding Circle’s loans can range from 8% to 33%, which compares favorably with Lending Club’s. The lender also doesn’t charge a prepayment penalty if you choose to repay the loan early.

Loan amount: $25,000 to $500,000. APR: 8% to 33%. Loan term: 1 to 5 years. Approval time: Pre-qualification in minutes, offer letter in 2 to 3 days, average of 10 days to funding. Read our Funding Circle review.

Get started at Funding Circle Before you apply for a Funding Circle loan, find out whether you meet the lender’s minimum qualifications. 620+ personal credit score 2+ years in business $150,000+ in annual revenue Profitable at least one of the last two years No bankruptcy in the last seven years Personal guarantee required Do I qualify? ▾

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Want to compare more small-business loans?

NerdWallet has created a comparison tool of the best small-business loans to meet your needs and goals. We gauged lender trustworthiness, market scope and user experience, among other factors, and arranged them by categories that include your revenue and how long you’ve been in business.

Compare business loans

To get more information about funding options and compare them for your small business, visit NerdWallet’s small-business loans tool. For free, personalized answers to questions about financing your business, visit the Small Business section of NerdWallet’s Ask an Advisor page.

Steve Nicastro is a staff writer at NerdWallet, a personal finance website. Email: Steven.N@nerdwallet.com. Twitter: @StevenNicastro.

This article was updated June 20, 2016. It was originally published Feb. 1, 2016.