Term loans

Borrow a number, pay it back on a schedule, and be done.

A term loan is the most straightforward product on this page. You borrow a set amount, you repay it in equal instalments over a set period, and on the last payment the obligation ends. In a business where a lot of financing is quietly open-ended, the fact that a term loan has a finish line is the point.

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Amount: $25,000 – $2,000,000
Term: 1 – 7 years
Time to funding: 2 – 10 business days
Typical rate: 9% – 32% APR
Collateral: General business lien, personal guarantee; larger deals may require specific assets

Sec. 01 — What it is

In plain language.

You receive the full amount at closing. Repayment is a fixed instalment — monthly for most bank and non-bank term loans, weekly for shorter-term online lenders — covering interest and principal until the balance reaches zero.

Because the payment does not change, a term loan is the easiest product to underwrite against your own budget. You can put the number in your monthly overhead and know it will still be that number in year three.

Term loans sit between SBA and short-term working capital on both cost and speed. Slower and cheaper than an advance, faster and more expensive than SBA.

Sec. 02 — What it costs

The price, and how repayment actually works.

The spread on this product is wide because it covers both bank-quality credit and near-subprime. Where you land inside it is mostly a function of time in business, your deposit history, and whether the money is buying an asset.

Typical rate

9% – 32% APR

Equal monthly instalments in most cases; some shorter-term lenders debit weekly.
One to seven years depending on amount, credit profile and what the money is buying.
Origination fees typically run 1% to 5%, deducted from the advance rather than billed.

Sec. 03 — Who it fits

Where this product does its best work.

These are the situations we actually see, in this industry, rather than a generic list of use cases.

A second retail counter or a full remodel of an existing shop, where the spend is known up front.
A packaged equipment purchase — grinder, mixer, vacuum tumbler, patty machine — bought together rather than one at a time.
Buying out a retiring partner in a family operation where an SBA timeline would blow the deal.
Consolidating several small equipment notes into one payment with a visible end date.
A branded product launch: label design, co-packing minimums, slotting fees and the first two production runs.

Sec. 04 — When this is the wrong product

Three situations where you should not take this.

A broker who never tells you no is selling, not underwriting. If any of these describe you, say so on the first call and we will point you somewhere else — including somewhere we make less money.

Your revenue swings hard by season

A fixed payment is a liability when December does four times what February does. Grilling-season processors, deer-season custom cutters and holiday-heavy retail counters all get hurt by a payment that does not flex. A line of credit lets you draw in the slow months and pay down in the strong ones. Take the term loan only if the payment is comfortable in your worst month, not your average one.

You do not actually know the number yet

Buildouts run over. If you are financing a project where the scope is still moving — a USDA room that has not been through FSIS plan review, a remodel without firm bids — a term loan locks you into a figure before you know it. You will end up back for a second loan at a worse rate. Get the bids first.

The purchase is a single piece of equipment

If you are buying one machine, equipment financing will almost always beat a general term loan. The machine secures the note, which lowers the rate, and the term can be matched to the asset’s useful life. Using a general term loan for a single-asset purchase means you pay an unsecured price for a secured risk.

Sec. 05 — Worked example

A second counter for a Kansas City butcher shop

A single-location butcher shop with eleven years of history had a chance to take over a closing deli two miles away — good hood, good floor, no cold storage worth keeping. Landlord wanted a signed lease in three weeks, which ruled out SBA.

Outcome

The lease was signed inside the landlord’s window and the second counter opened fourteen weeks later. At month nine the new location was covering its own payment and contributing to overhead. The owner refinanced the balance into an SBA 7(a) in year two at roughly half the rate — which was the plan from the first conversation, and we said so at the time.

Illustrative example. Figures are not an offer of credit.

Buildout, cases and cold storage: $240,000
Opening inventory and payroll reserve: $45,000
Loan amount: $285,000
Rate: 13.9% APR
Term: 5 years
Monthly payment: $6,610
Origination fee: 3%, financed
Time from application to funding: 6 business days

Sec. 06 — What you will need

Documents for this product.

Gathering these before you apply is the single biggest thing you can do to shorten the timeline.

Six to twelve months of business bank statements
Most recent business tax return
Year-to-date profit and loss
A debt schedule
Driver’s licence and voided business cheque

Sec. 07 — Questions

About term loans.

How is this different from a merchant cash advance?

A term loan has an interest rate, a fixed term and an amortisation schedule, so paying it off early saves you money. An advance has a fixed total payback, so early repayment saves you little or nothing. They are different instruments that happen to both deliver cash.

Can I pay it off early?

Usually, and you should ask before signing rather than after. Most of our bank and non-bank term partners charge no prepayment penalty. Some shorter-term products apply a fixed factor, which means early payoff saves you far less than you would expect. We will tell you which one you are being offered.

Does a weekly payment schedule hurt me?

It hurts if your deposits are lumpy. A shop that invoices restaurant accounts on net 30 and gets paid in one or two large deposits a month will feel weekly debits much harder than a retail counter taking cash and cards daily. Match the debit frequency to how money actually arrives in your account.

What credit score do I need?

Our partners will look at files from roughly 600 up. Below about 660 the rate moves quickly and the term shortens. Time in business and consistent deposits matter more than the score alone — a shop with four years of steady deposits and a 640 will often price better than a two-year-old business at 700.

Sec. 08 — Related

Other products worth comparing.

SBA loans

The cheapest money available to a small processor, and the slowest to close.

Equipment financing

The machine secures the loan, so the rate follows the steel rather than the score.

Line of credit

A pool you draw from and pay back, over and over, sized to your cash cycle.

Sec. 09 — Get started

See whether term loans fits.

Two minutes, no hard credit pull, and a straight answer about whether this is the right product for your situation.

Important

Massive Meat Capital is a commercial finance brokerage, not a lender or a bank. Funding is provided by third-party lending partners. Rates, terms, and approval are determined by the funding partner and are subject to underwriting. Figures shown are illustrative and are not an offer of credit. Products are available to business entities only.

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