What Is a Term Loan? How It Works, Benefits, and What to Know

A business term loan can be a smart way to secure a lump sum of capital for major purchases, expansion projects, or cash flow needs. Unlike revolving credit, term loans offer fixed payments, clear repayment terms, and often lower interest rates. In this article, we’ll break down exactly how term loans work, what you need to qualify, and how to decide if it’s the right move for your business growth.