Small Business Loan Calculator

You can get a business loan term that ranges from as short as a month to years – even decades.

It depends on the loan amount and lender, but most importantly, your financial needs are what will determine the loan type.

Here’s an example of the terms of some typical business loan types in order of shortest to longest:

• Invoice financing: 1 to 3 months
• Short-term loans: 3 to 18 months
• Business lines of credit: 6 months to five years
• Equipment loans: One to five years
• Microloans: One to six years
• Term loans: One to ten years

SBA loans: Five to 25 years

A business loan term is a timeframe within which you’re supposed to pay off your debt per your contract terms. You can take out a short-term or long-term loan.

Short-term loans usually deal with smaller numbers and can be repaid within 1.5 years. 

Medium-term loans can last between one to five years.

Long-term loans can take up to 25 years.

You’ll find most small business loans apply for an interest rate of 4-6%, but it mainly depends on who the lender is.

• Large national banks: 2.55 – 5.14%
• Regional banks and small national banks: 2.48 – 5.4%
• Foreign banks: 1.45 – 5.66%
• Online or other lenders: 13 – 71%

In general, banks apply a standard average rate of 2-6% – the lower the number, the better the interest rate.

Keep in mind that a low-interest rate is not the only thing that determines you getting a low rate. It’s also affected by other factors which include the loan term, amount, and credit history.

Small business loan application success rates depend on the lender and on the business itself.

Larger banks have an approval rate of about 20% to 25%, significantly lower than that of smaller banks, which usually approve approximately 50% of the small business loan applications they get.

Your credit report is also a huge indicator of whether or not you can secure a small business loan. If you have any records of late or non-debt payments, this can sabotage your chances of getting a bank loan for your small business.

Besides getting a business loan from the bank, there’s a couple of ways you can get the means to invest in your business.

• Personal savings 
• Personal loans from friends and family
• Applying for grants and schemes
• Pitching to venture capital and angel investors
• Crowdfunding

The best options for small business loans with relatively shorter application times and higher approval rates include:

• Invoice financing
• Short-term loans
• Business lines of credit
• Microloans

Be wary about caveats when it comes to fast loans. These can have higher rates and fees and less financial flexibility.