Conventional Business Loans

With a name like conventional, you can correctly assume that this is the standard and more common type of loan offered by banks and credit unions to business owners. Terms are usually fixed as are interest rates, and these loans are usually done with a specific purchase or purpose and not just for general business needs or operations.

Features

Maximum Loan Amount

$25,000 to $ 500,000

Loan Term

1 – 5 years

Interest Rates

7 – 30%

Speed

As little as 2 days

FREE EBOOK: BUSINESS LOAN BASICS

How it works

Conventional or traditional business loans are basic term loans in that a borrower will gain a set amount of money to be repaid with a set number of payments over a specified repayment time and more often than not, with a fixed interest rate, although some traditional loans do have variable interest rate options. These loans are available through traditional banks as well as through alternative lending institutions. Being a traditional loan also implies that there is a traditional, and much more stringent, approval criteria which make these loans a bit more difficult to obtain. You may be required to have collateral, especially with less than good credit. During the application process or before you even begin the process, be sure to ask questions about prepayment penalties and fees associated with the loan.

Once you have chosen a loan and a lender, the application process usually only take a couple of days, which is a nice alternative to the lengthy SBA loan process.

Fixed rates

Fixed monthly payments

Few restrictions on use of funds

Helps build or improve credit score

No so flexible rates and terms

Prepayment penalties on some programs

Collateral may be required

Longer applications and paperwork

What it costs

The costs of a conventional business loan vary from lender to lender and are dependent on your credit scores as well as the collateral that you are willing to put up for the loan. The longer the term of the loan, the more open lenders are to less than perfect credit scores. Interest rates on conventional business loans can vary anywhere from seven to thirty percent, again depending on your credit score and collateral. With fixed rates and terms, these loans are very predictable, and you will know exactly how much your payments will be and how many total payments will be required. This also gives you some control over the costs by allowing you to set a payment and borrow the amount available with that payment.

Quick and simple process, from Quote to Funding.

  • Get a Quote

    Enter some basic information to get a free, instant quote (no credit check) or fill out a single, free application
  • Apply

    View quotes, apply for one, some, or all options and receive instant conditional approvals
  • Speak with a Specialist

    Review options, opportunities for growth with a funding specialist and get final verification

Not sure which financing product is best for you?

Chat with with an experienced funding specialist at 888-454-7991. It’s toll and obligation free!