Term Loan - Tailored Financing Solutions | Long-term And Intermediate-term Options With Flexible Repayment Plans, Collateral Requirements, And Ideal For Established Small Businesses
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Product Specifications
| Loan Type | Term Loan |
| Duration | 1-30 years |
| Interest Rate | Variable |
| Repayment | Monthly/Quarterly |
| Collateral | Required |
| Approval Process | Rigorous |
| Usage | Business expansion, asset acquisition |
| Features | Fixed payments, Long-term, Business growth, Increased capital |
Product Overview
Key Features
Term Loan
A term loan is a monetary loan that is repaid in regular payments over a set period of time. Term loans usually last between one and ten years, but may last as long as 30 years in some cases. A term loan usually involves an unfixed interest rate that will add additional balance to be repaid.
Term loans can be given on an individual basis but are often used for small business loans. The ability to repay over a long period of time is attractive for new or expanding enterprises, as the assumption is that they will increase their profit over time. Term loans are a good way of quickly increasing capital in order to raise a business supply capabilities or range. For instance, some new companies may use a term loan to buy company vehicles or rent more space for their operations.
- Intermediate-term loans: Usually running less than three years, these loans are generally repaid in monthly installments (sometimes with balloon payments) from a business's cash flow. According to the American Bankers Association, repayment is often tied directly to the useful life of the asset being financed.
- Long-term loans: These loans are commonly set for more than three years. Most are between three and 10 years, and some run for as long as 20 years. Long-term loans are collateralized by a business's assets and typically require quarterly or monthly payments derived from profits or cash flow. These loans usually carry wording that limits the amount of additional financial commitments the business may take on (including other debts but also dividends or principals' salaries), and they sometimes require that a certain amount of profit be set-aside to repay the loan.
- Appropriate For: Established small businesses that can leverage sound financial statements and substantial down payments to minimize monthly payments and total loan costs. Repayment is typically linked in some way to the item financed. Term loans require collateral and a relatively rigorous approval process but can help reduce risk by minimizing costs. Before deciding to finance equipment, borrowers should be sure they can they make full use of ownership-related benefits, such as depreciation, and should compare the cost with that leasing.
- Supply: Abundant but highly differentiated. The degree of financial strength required to receive loan approval can vary tremendously from bank to bank, depending on the level of risk the bank is willing to take on.
Company Details
Focusing on a customer-centric approach, JUST 4 LOAN has a pan-India presence and caters to a huge consumer base throughout the country. Get Foreign Exchange Services from JUST 4 LOAN at Trade India quality-assured services.
Business Type
Service Provider
Establishment
2003
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Seller Details
Rating
TrustedSellerBengaluru, Karnataka
Proprietor
Mr. G. S. Santhosh
Address
Plot No. 27, 3rd Cross, 1st Vallabha Nagar, Konanakunte Cross, Bengaluru, Karnataka, 560062, India
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