WithFunded › Term Loans
Business Term Loans: a lump sum with fixed, predictable payments
A term loan gives you a fixed amount up front that you repay in equal monthly payments over a set term. It's the most predictable way to finance a known, one-time expense.
A WithFunded guide · Rates as of June 2026 · Updated quarterly
Quick facts
- Best for
- One-time expenses with a known cost
- How you pay
- Fixed equal monthly payments
- Rate basis
- ≈7% at banks; representative 8%–30% APR online
- Typical terms
- 6 to 60 months (online); longer at banks/SBA
- Funding speed
- Days (online) to weeks (banks)
- Credit fit
- Better credit lowers your rate and payment
What a term loan costs per month
Monthly payments at the representative 8%–30% APR band (low end = 8% APR, high end = 30% APR). This is the same math behind the WithFunded calculator:
| Amount | 12 mo | 24 mo | 36 mo | 60 mo |
|---|---|---|---|---|
| $25,000 | $2,175–$2,437 | $1,131–$1,398 | $783–$1,061 | $507–$809 |
| $50,000 | $4,349–$4,874 | $2,261–$2,796 | $1,567–$2,123 | $1,014–$1,618 |
| $100,000 | $8,699–$9,749 | $4,523–$5,591 | $3,134–$4,245 | $2,028–$3,235 |
| $250,000 | $21,747–$24,372 | $11,307–$13,978 | $7,834–$10,613 | $5,069–$8,088 |
Try your own numbers:
Estimate only, at a representative 8%–30% APR band for a standard term-loan structure. Not an offer. Your actual rate, term, and payment are set by the lender.
Longer terms lower the payment but cost more overall
Stretching a $100,000 loan from 36 to 60 months lowers the payment by roughly $1,106–$1,010 a month — but adds about $8,847 in total interest at the low end of the band, and about $41,295 at the high end. WithFunded calculation, representative 8%–30% APR band.
Term loan vs. line of credit
Choose a term loan if…
- You have one known, one-time expense
- You want a fixed payment and payoff date
Choose a line of credit if…
- Your need recurs or is unpredictable
- You want to pay interest only on what you use
Frequently asked questions
- What's the monthly payment on a $50,000 business loan?
- Roughly $1,567–$2,123 a month over 36 months at a representative 8%–30% APR. Your actual payment depends on your rate and term, set by the lender.
- Is it better to take a longer or shorter term?
- A longer term lowers the monthly payment but increases total interest paid. A shorter term costs less overall but demands a higher payment. Match the term to the asset's useful life and your cash flow.
- What rate will I get on a term loan?
- Bank term loans averaged around 7% in late 2025; online lenders span a wider representative 8%–30% APR band depending on credit, time in business, and revenue.
- How fast can I get a term loan?
- Online term loans can fund in days; bank term loans take longer. SBA-backed term loans are cheapest but slowest.
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Payment figures are WithFunded calculations using a standard amortized-payment formula at a representative 8%–30% APR band. Bank-rate context is from the Federal Reserve Bank of Kansas City Small Business Lending Survey (Q4 2025).
Disclaimer. WithFunded and Big Think Capital are a financing marketplace; we are not the direct lender and do not guarantee funding, approval, rates, or terms. Everything on this page is a representative example only — not an offer or a commitment to lend, and not financial advice. Actual rates, fees, payments, and terms are set by the funding lender and depend on your business, credit, and the product. Where required by state law, the lender provides cost-of-financing disclosures before any agreement is signed.