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6 Best Long-Term Business Loans For 2024

Looking for a loan for your small business? These lenders offer term lengths of five or more years, plus low interest rates.

    Shannon Vissers
  • Last updated onUpdated

  • Chelsea Krause
  • REVIEWED BY

    Chelsea Krause

    Lead Staff Writer

Our content reflects the editorial opinions of our experts. While our site makes money through referral partnerships, we only partner with companies that meet our standards for quality, as outlined in our independent rating and scoring system.

Long-term business loans are loans used to finance large, long-term business investments over many years. Term lengths for this type of business loan tend to range from 3 to 10 years—or up to 25 or 30 years for real estate business loans. Interest rates tend to be lower than those for short-term loans, though borrower requirements may be more stringent.

Learn whether a long-term business loan is right for your needs and see the best long-term small business loan options currently available.

Learn More About Our Top Picks

CompanyTerm LengthNext StepsTerm Length
BusinessLoans.com

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  • Offers: Term loans
  • Max. borrowing amount: $3 million
  • Max term length: 5 years
  • Offers: Term loans
  • Max. borrowing amount: $3 million
  • Max term length: 5 years

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Funding Circle

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  • Offers: Term loans, SBA loans
  • Max. borrowing amount: $500K
  • Max term length: 10 years
  • Offers: Term loans, SBA loans
  • Max. borrowing amount: $500K
  • Max term length: 10 years

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Lendio

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  • Offers: Term loans, SBA loans
  • Max. borrowing amount: $5 million
  • Max term length: 30 years
  • Offers: Term loans, SBA loans
  • Max. borrowing amount: $5 million
  • Max term length: 30 years

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SmartBiz

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  • Offers: Term loans, SBA loans
  • Max. borrowing amount: $500K
  • Max term length: 10 years
  • Offers: Term loans, SBA loans
  • Max. borrowing amount: $500K
  • Max term length: 10 years

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Upstart

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  • Offers: Personal loans
  • Max. borrowing amount: $50K
  • Max term length: 5 years
  • Offers: Personal loans
  • Max. borrowing amount: $50K
  • Max term length: 5 years

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Live Oak Bank

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  • Offers: Term loans, SBA loans
  • Max. borrowing amount: $15 million
  • Max. term length: 25 years
  • Offers: Term loans, SBA loans
  • Max. borrowing amount: $15 million
  • Max. term length: 25 years

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Read more below to learn why we chose these options.

The 6 Best Long Term Loans For Businesses

Long-term business loans can be used to expand operations with a long-term investment, such as a new location, or to acquire an existing business. The best small business loans with longer term lengths are offered by SBA lenders, banks, and reputable online lenders.

Here are our top picks for small business long term loans for a variety of needs and funding requirements, with term lengths ranging from 3 to 30 years.

How The Best Long Term Business Loans Compare

Type(s) Of Long-Term FinancingMax. Loan AmountMin. Credit ScoreMin. Time In BusinessMax. Term Length
BusinessLoans.comTerm loans$3 millionVariesVaries5 years
Funding CircleTerm loans, SBA 7(a) loans$500K6502 years10 years
LendioTerm loans, SBA loans, business acquisition loans$5 million6006 months30 years
SmartBizTerm loans, SBA loans$500K6502 years10 years
UpstartPersonal loans$50K300N/A5 years
Live Oak BankTerm loans, SBA loans$15 million6803 years25 years

BusinessLoans.com: Best Long Term Business Loans For Bad Credit

BusinessLoans.com

Total Rating 4.0
Rates & Fees4.6

Services4.0

Eligibility Requirements4.1

Application3.0

Sales & Advertising Transparency3.6

Customer Service4.1

User Reviews4.4



Pros

  • High borrowing amounts
  • No minimum credit score to qualify
  • Get matched with multiple loan offers from a single application
  • Open to newer businesses

Cons

  • Shorter term length than SBA loan
  • Fees may be high if you have bad credit
  • Not all businesses will qualify for long-term financing

Why We Chose BusinessLoans.com For Businesses With Bad Credit

BusinessLoans.com is an alternative business lending service catering to all business types, including businesses with bad credit, as there is no minimum credit score to apply. Simply submit a quick online application and be matched with up to 5 different loans. Loans can be as large as $3 million, and you can potentially receive a 5-year business loan within 24 hours.

BusinessLoans.com Services

Both short- and long-term business loans are available through BusinessLoans.com. Note that BusinessLoans.com doesn’t originate loans, but rather, they connect you with lenders from their lending network.

BusinessLoans.com Rates & Fees

BusinessLoans.com interest rates on term loans start at 9%.

BusinessLoans.com Eligibility Requirements

Though there are no specific criteria to apply, most of BusinessLoans.com lending partners generally require 6 months to 1 year in business and $100K-$200K in annual business revenues.

BusinessLoans.com can match bad credit applicants with lenders in its network, but anecdotally, you will have a higher chance of securing financing through BusinessLoans.com if your FICO is at least 500.

When To Use ...

  • You have bad credit but don’t want a short-term loan
  • You are not sure if you qualify for long-term financing and want to see your options

Get Started With BusinessLoans.com

Read our in-depth review

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Funding Circle: Best For Established Businesses

Funding Circle

Total Rating 4.2
Rates & Fees4.6

Services4.0

Eligibility Requirements3.8

Application4.3

Sales & Advertising Transparency4.8

Customer Service4.5

User Reviews3.2



Pros

  • Fast time-to-funding
  • Monthly repayments
  • No prepayment penalty
  • Can qualify with credit score under 700

Cons

  • Not for startups
  • Low max. borrowing amount
  • Not all businesses will qualify for long-term financing

Why We Chose Funding Circle For Established Businesses

Funding Circle is an online business lending marketplace that matches businesses to suitable long-term business lenders, putting funds in your account in as little as two days. By applying to Funding Circle, established businesses can quickly access long-term loans (term loans and SBA loans) up to $500K, with term lengths of up to 10 years.

Funding Circle Services

Funding Circle’s long-term loan offerings include traditional business term loans with terms up to 7 years, as well as SBA 7(a) loans with up to a 10-year term length. However, not all businesses will qualify for an SBA loan or for a long-term loan through Funding Circle—their shortest term is actually just 6 months.

Funding Circle Rates & Fees

Funding Circle SBA loans currently have a low flat interest rate of Prime + 2.75-4.75%; pricing for FC’s business term loans isn’t listed.

Funding Circle Eligibility Requirements

To qualify for an SBA loan through Funding Circle, you’ll need a minimum credit score of 650 and at least 2 years in business.

Specific qualifying criteria aren’t mentioned for Funding Circle’s non-SBA business term loans, but Funding Circle says applicants will need “moderately good credit” and “a few years of operating history” to qualify.

When To Use ...

  • You have strong business credentials but need something faster than a bank loan
  • You want an easy, streamlined way to apply for an SBA loan

Get Started With Funding Circle

Read our in-depth review

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Lendio: Best For Comparing Loans

Total Rating 4.8
Rates & Fees5.0

Services5.0

Eligibility Requirements4.9

Application4.5

Sales & Advertising Transparency4.4

Customer Service4.9

User Reviews4.9



Pros

  • Multiple long-term financing types available
  • Network includes Preferred SBA Lenders
  • Long-term loans for newer businesses
  • Accepts credit scores as low as 600

Cons

  • Not all applicants will be matched with long-term financing offers
  • Lengthy time-to-funding (as long as 2 months)
  • SBA loan amounts not as large as some marketplaces

Why We Chose Lendio For Comparing Loans

Lendio is another alternative lending service that matches business owners with loans online. With a simple 15-minute application, you can compare loan offers from up to 75 lenders in Lendio's network, and potentially get funded within 24 hours (for certain loan types). Lendio offers multiple long-term business loan options, including multiple types of SBA loans and various non-SBA term loans.

Lendio Services

Lendio’s long-term business loan options include SBA loans, business acquisition loans, and traditional business term loans.

Lendio’s term lengths are 10-30 years for SBA loans (including commercial real estate SBA loans); 10-25 years for business acquisition loans; and up to 10 years for business term loans. You can also get an SBA microloan (<$50K) through Lendio, with a term length of up to 6 years.

Lendio Rates & Fees

Interest rates for Lendio SBA loans are based on the Prime rate and range from 4.51% for a 20-year 504 loan to 11.5% for a fixed-rate 7(a) loan. Rates for business term loans accessible through Lendio start at 8.49%, while business acquisition loan interest rates can be as low as 5.5%.

Eligibility Requirements

To qualify for a long-term loan through Lendio, you’ll need a credit score of at least 600, as well as 6 months in business and monthly business revenues of at least $8K.

When To Use ...

  • You want an SBA loan or a large loan to acquire a business
  • You aren’t sure what type of long-term loan you should get and want to see options

Get Started With Lendio

Read our in-depth review

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SmartBiz: Best For Smaller SBA Loans

Total Rating 4.7
Rates & Fees4.8

Services4.8

Eligibility Requirements4.8

Application4.5

Sales & Advertising Transparency4.9

Customer Service4.9

User Reviews3.5



Pros

  • Leading online business bank loan & SBA loan platform
  • Faster and easier than going through a bank
  • Accepts fair-credit applicants
  • Monthly repayments

Cons

  • Not suitable for startups or bad credit
  • Takes longer to get funded compared with other online loans
  • Small max. borrowing amounts

Why We Chose SmartBiz For Smaller SBA Loans

SBA loans and bank loans have notoriously lengthy applications and many hoops to jump through, but SmartBiz has streamlined the entire funding process by acting as an online intermediary. Essentially, SmartBiz combines the ease and speed of online loans with the longer term lengths and lower interest rates of traditional business loans. SmartBiz is ideal for businesses that want a smaller SBA loan (<$500,000).

SmartBiz SBA loans have 10-year terms, while their bank term loans have a maximum term of 5 years.

SmartBiz Services

SmartBiz is an online business lending service that specializes in SBA loans and bank term loans, specifically (though short-term lines of credit are also available).

SmartBiz online SBA loans range from $30,000 to $350,000; SmartBiz bank term loan amounts range from $30,000 to $350,000 and have term lengths of 2-5 years.

SmartBiz Rates & Fees

SmartBiz interest rates for SBA loans range from 11.25-13.25% (variable rate of Prime Rate plus 2.75% to 4.75%). SmartBiz bank term loans have interest rates starting at 9.99%.

SmartBiz Eligibility Requirements

To qualify for a SmartBiz loan you’ll need at least 2 years in business and a credit score of 650 for an SBA loan or 660 for a non-SBA bank term loan. SmartBiz says that most businesses that are funded through SBA lenders in the SmartBiz network have annual revenues of at least $50K.

When To Use ...

  • You need a smaller SBA or bank loan (<$350-$500K)
  • You want a fast, easy way to apply for an SBA loan online

Get Started With SmartBiz

Read our in-depth review

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Upstart: Best For Startups

Total Rating 4.0
Rates & Fees3.6

Services3.4

Eligibility Requirements4.7

Application4.8

Sales & Advertising Transparency4.1

Customer Service3.9

User Reviews4.1



Pros

  • Startup-friendly
  • Bad-credit friendly
  • Funds are disbursed quickly
  • No prepayment penalty

Cons

  • Low borrowing amounts
  • High interest rates
  • Term lengths not as long as other long-term financing options

Why We Chose Upstart For Startups

Upstart personal loans range from $1K to $50K and mature after 3 or 5 years. Upstart loans have longer term lengths than most online loans, and may be a good fit for startup entrepreneurs who aren't looking to borrow a very large amount. Upstart loans are also available to individuals who have poor credit or no credit.

Upstart Services

Upstart is an alternative lender that offers personal loans that can be used for business.

Upstart Rates & Fees

Upstart personal loans have fixed rates of 7.8-35.99% APR.

Upstart Eligibility Requirements

To qualify for an Upstart loan, you’ll need a minimum credit score of just 300, and your application may also be considered if you have insufficient credit history to produce a score.

When To Use

  • You don’t have enough time in business or good enough credit to qualify for a business loan
  • You need a small loan to start a business

Get Started With Upstart

Read our in-depth review

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Live Oak Bank: Best Bank Loan

Total Rating 2.9
Rates & Fees2.1

Services4.4

Eligibility Requirements2.1

Application1.0

Sales & Advertising Transparency4.6

Customer Service3.9

User Reviews3.9



Pros

  • #1 bank for SBA loans
  • Available in all 50 states
  • Large non-SBA loans also available
  • Low interest rates

Cons

  • Requirements can be hard to meet
  • Limited loan information posted online
  • Some industries ineligible for funding

Why We Chose Live Oak Bank For Bank Loans

As a non-traditional bank, Live Oak Bank has some of the benefits of a traditional business lender, with the convenience of an alternative lender, making it an excellent bank for small businesses looking for long-term financing options, including term loans and SBA loans.

The bank has Preferred Lender Status, which allows SBA loans to be processed quicker, and was ranked #1 SBA 7(A) Lender by dollar amount for FY 2023.

Live Oak Bank Services

Live Oak Bank offers SBA 7(a) and SBA 504 loans to small businesses, as well as non-SBA commercial loans and USDA loans for large businesses. SBA commercial construction loans may be as large as $15 million, while SBA 7(a) loans and commercial loans max out at $5 million. Term lengths are up to 25 years.

Live Oak Bank Rates & Fees

SBA loan rates are based on the Prime rate, with a markup of up to 3.5%. Rates for non-SBA term loans are not disclosed.

Live Oak Bank Eligibility Requirements

To qualify for a term loan from Live Oak Bank, you’ll need at least 3 years in business and a 680 FICO. Business revenue requirements vary depending on loan type and amount.

When To Use ...

  • You want a large, long-term loan for a business acquisition, partner buyout, or commercial real estate purchase
  • Your FICO is <700 but you have been in business for 3+ years

Get Started With Live Oak Bank

Read our in-depth review

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Loan Marketplace Review Methodology

We spend hours researching and evaluating each business loan marketplace we review at Merchant Maverick, placing special emphasis on key characteristics to generate our ratings.

Weighted Rating Breakdown

Services 30%
Rates & Fees 15%
Eligibility Requirements 15%
Application 15%
Sales & Advertising Transparency 10%
Customer Service 10%
User Reviews 5%

When rating lending marketplaces, we use a 39-point rubric that looks at rates and fees, services, eligibility requirements, application, sales and advertising transparency, customer service, and user reviews. We weigh each section differently to calculate the total star rating.

  • Rates & Fees: 15% of the total star rating
  • Services: 30% of the total star rating
  • Eligibility Requirements: 15% of the total star rating
  • Application: 15% of the total star rating
  • Sales & Advertising Transparency: 10% of the total star rating
  • Customer Support: 10% of the total star rating
  • User Reviews: 5% of the total star rating

Each section is further broken down into granular, weighted subsections, in which we examine specific attributes like the variety of lending products and partners available, terms lengths, conditions of repayment, credit score and revenue requirements, ease of application, length of time to funding, the ethics involved in promoting the loan marketplace.

Read more about how we rate loan marketplaces.

3 Types Of Long-Term Business Lenders

Most business owners turn to three main sources for their long-term financing needs: Small Business Administration lenders, banks and credit unions, and alternative/online lenders.

SBA Lenders

The SBA offers several long-term loan programs. The most popular is the 7(a) program, which offers up to $5 million for almost any purpose with a maximum repayment term of 10 years. Falling under the 7(a) umbrella is the Community Advantage Loan which offers the same competitive rates and terms for businesses in underserved communities, while the Veterans Advantage program offers long-term loan options for military veterans and service members.

The SBA Microloans program is another option for smaller financing needs. These loans provide up to $50,000 that can be repaid over a maximum term of six years.

For businesses that want to improve their facilities or purchase real estate, 504 loans provide 40% of funding toward these projects. A maximum of $5 million can be distributed through this program, with repayment terms set at a maximum of 25 years.

SBA loans can be obtained from intermediary lenders, including SBA-approved banks, credit unions, nonprofits. and alternative lenders.

Loan ProgramDescriptionMore

7(a) Loans

Small business loans that can be used for many many business purchases, such as working capital, business expansion, and equipment, inventory, and real estate purchasing.

Review

Microloans

Small loans, with a maximum of $50,000, which can be used for working capital, inventory, equipment, or other business projects.

Review

CDC/504 Loans

Large loans used to acquire fixed assets such as real estate or equipment. 504 Loans are offered in partnership with Community Development Companies (CDCs) and banks.

Review

Disaster Loans

Loans used to rebuild or maintain business following a disaster. 

Review

Banks & Credit Unions

Banks are a very popular source for obtaining long-term business loans because of low interest rates and favorable terms. However, qualifying for these loans can be difficult. Credit scores must be very high, the application and approval process can be lengthy, and banks often have strict requirements in terms of time in business and annual revenues. Businesses that do qualify, however, will find bank loans are easily one of the most affordable loans on the market.

Credit unions also offer very competitive rates and terms, and many businesses prefer to work with these lenders because of the more personalized service they receive. Credit unions may have a bit of flexibility in terms of their requirements, but all borrowers should come to the table with a high credit score and a stable business history.

Alternative Lenders

Alternative lenders offer some benefits that banks, credit unions, and most SBA intermediaries do not, including fast funding and lower credit score requirements. However, there are also several drawbacks to working with alternative lenders (also sometimes referred to as “online lenders”). Higher interest rates are one of the biggest drawbacks. Lower maximum loan amounts are another.

Most alternative lenders set their maximum repayment terms at five years. Depending on the amount borrowed, this could mean higher monthly payments, especially with higher interest rates.

However, the return on investment may be enough for a business to move forward with one of these loans. These loans are best for businesses that don’t meet other lenders’ qualifications, including but not limited to credit score, time in business, or annual revenue.

Short-Term VS Long-Term Business Loans

Short-term and long-term business loans have some major differences, and the differences are not just limited to the length of the term. Here are the major differences between short-term loans and long-term loans:

Long-Term Loans

  • Smaller Monthly Payments: Large expenses can be broken down into affordable monthly payments by taking out a long-term business loan.
  • Higher Borrowing Amounts (Usually): Long-term business loans often have higher maximum borrowing amounts of up to $1 million to $5 million. However, alternative lenders that offer long-term loans may not offer loans this large.
  • Lower Interest Rates: Borrowers with the highest credit scores can take advantage of interest rates as low as 5% (or sometimes lower), making this one of the most affordable loan options. The longer your term is, though, the more you will pay for the loan in total.
  • Collateral Requirements: For most long-term loans, business collateral is required. In some cases, the collateral will be the item being purchased with the loan proceeds, such as equipment, a vehicle, or real estate.
  • Higher Credit Score Requirements: A long-term loan can be one of the most difficult loans to obtain. A great credit score (with no negative items on your credit history) is required to get the most affordable funding. While some lenders may work with borrowers with lower scores, interest may be much higher and terms not as favorable.
  • More Documentation Requirements: Because long-term loans are often for very large amounts of money, lenders want to ensure that all borrowers can pay back the loan. This means that there is a lot of paperwork involved in the application process. Borrowers must come prepared to take the time needed to provide the lender with all documentation to qualify for the loan.
  • Longer Approval Process: Depending on the lender, getting approval for a long-term business loan could take weeks or even months — not ideal for a business that needs immediate funding.
  • Better For Long-Term Investments: Because you will be paying the loan off for a number of years, long-term loans are more suitable for long-term business investments. For example, you don’t want a 3-year loan to pay off 3 months of inventory.

Short-Term Loans

  • Much Shorter Term Length: While long-term loans have years-long terms, STL terms are measured in months or weeks. Any loan with a term length of one year or shorter is considered an STL, but many STLs have a term length of just 3 months.
  • Larger, More Frequent Loan Payments: Short-term loans usually require weekly or even daily repayments. And when the term is short, the repayments are large and can be difficult for some businesses to afford.
  • Lower Borrowing Amounts (Usually): Short-term loan borrowing amounts often cap out at $250,000 or $500,000, or sometimes less. Though that’s the max, most short-term business loans are for much smaller amounts—around $20,000.
  • Relaxed Borrower Requirements: These loans are much easier to qualify for than LTLs, in that they have low credit score requirements, low business revenue requirements, and minimal time-in-business requirements.
  • Higher Interest Rates & Fees: Short-term loans can be an expensive way to borrow capital. If you have bad credit, you might pay more than 50% of the borrowing amount. This means that on a $20,000 loan, you would be charged $10,000 in interest and fees, and will have to pay back a total of $30,000 over the next 12 months (or whatever your term length is).
  • Different Fee Structure: STLs usually have a different fee structure than standard term loans. Rather than charging interest in the traditional sense, the borrower is charged a fixed fee, called a factor rate. There’s also usually an origination fee that is taken out of your loan proceeds.
  • No Specific Collateral Requirements: You usually won’t have to put down any specific collateral, such as property or specific business assets. However, you will likely have to sign a personal guarantee and/or agree to a blanket lien before the loan is disbursed.
  • Shorter Approval Process: Short-term loans usually have a very fast approval process. You can often get approved the same day you apply and see your funds in your account as soon as the next business day. You do still need to fill out some forms and supply some documentation, but overall the approval and funding process is much quicker than with a long-term loan.
  • Better For Short-Term Investments: Because you’ll have to repay the loan quickly, short-term loans are better for short-term investments, such as payroll, inventory, or other working capital needs.

All in all, it doesn’t really make sense to say that long-term loans are better or short-term loans are better. It depends more on your specific situation—what you need the loan for, how soon you need the funds, and what type of financing you qualify for.

Final Thoughts On Long Term Business Loans

A long-term business loan can be a smart and affordable way to manage large expenses. However, to get the most out of this type of financing, it’s important to do your research to find the lowest interest rates and best terms. Taking some time to evaluate why you need the money and what kind of return you expect on your investment will help you choose the best loan to suit your long-term goals.

A major benefit of long-term business loans is you have longer to pay your loan off. Just remember that with a longer-term comes a longer amount of time for interest to accrue—and some lenders will penalize you for paying off your loan early. If you are not sure about making such a long-term commitment, consider a short-term business loan instead.

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Shannon Vissers

Shannon Vissers

Lead Staff Writer at Merchant Maverick
Shannon has been writing for Merchant Maverick about small business software and financing since 2015. She started writing professionally about business topics in 2005. Shannon has been featured in the Washington Post, Reader's Digest, US News, MSN, Yahoo Finance, Business Insider, and other publications. She has a bachelor's degree in English from San Diego State University and currently resides in San Diego, California.
Shannon Vissers
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