1 / 9

Term Loan vs. Line of Credit: Which Is A Better Funding Option?

Business line of credit and term loans are two different funding options for small businesses.If you have analyzed your financial need and looking to apply for a better funding opportunity. Give this article a quick read. https://www.onlinecheck.com/blog/business-loans/term-loan-vs-line-of-credit-which-is-a-better-funding-option/

michaelgavin
Download Presentation

Term Loan vs. Line of Credit: Which Is A Better Funding Option?

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. TERM LOANVSLINE OF CREDIT WHICH IS A BETTER FUNDING OPTION www.onlinecheck.com

  2. What is Term Loan? Eligibility criteria for term loan A term loan is a lump sum of money lent by the lender to the borrower, and the borrower pays it back as per the weekly, monthly, or daily repayments schedule. • Min one year in business • Min 640 credit score • Annual revenue more than $100,000

  3. What is Line of credit? Eligibility criteria for Line of credit In line of credit, the lender transfers the money into the borrower’s account. The borrower withdraws the money and after paying interest on the amount that he or she withdrew. • Min two year in business • Min 620 credit score • Annual revenue more than $75,000

  4. Repayment Terms • Line of Credit range is from six months to 5 years. • Term Loan • can be up to ten years.

  5. Interest rate Line of Credit ranges from 7% to 25%. • Term Loan • has 20% interest rate.

  6. When is a term loan better funding option? When a borrower is certain about the total loan amount, he or she should apply for a term loan. In addition to this, for business owners who function better with a set repayment cost, a term loan is an ideal option.

  7. When a business line of credit a better funding option? When a borrower is uncertain of his or her financial needs, applying for a business line of credit is a safer option. At times, you need funds instantly, on occasions like these a line of credit can be beneficial.

  8. For more information and to apply for business line of credit or term loans, visit Merchant Advisors website and secure best financial solution for your small business.

  9. GET IN TOUCH Address E-mail Phone 9-5 Novelty Lane Suite B Essex, Ct 06426 info@merchantadvisors.com (833) 827-4412 Social @onlinecheck

More Related