How to Get Mid-Term Business Loans?
Opportunities often arise, and you must start your business expansion. Still, as a small business owner, you do not always have enough capital at the right time to fund your business projects.
You are in a tough spot; luckily, BitX Funding has diverse solutions for financing your business. Business loans hailing from BitX Funding allow you to bridge the gaps underlying your company’s cash flow.
If you are looking out for a popular solution to acquire fast cash flow, then there’s good news for many business owners, you can avail of a medium-term loan to quench your business’s cash needs.
Why BitX Financing for Your Business?
BitX Funding is adorned with financing that can always be a great way to fund your upcoming projects while giving your business the flexibility to pay off the loan over a specified time duration.
However, you have first to select the type of business loan you are going to opt for. If you have just started your business journey and you don’t want to make yourself stuck into the hustles of long-term repaying terms and conditions.
Talking about small business loans gives you a minimal time span to cover up the loans and interest costs. Just as the small business loan is not for everyone, and it might not be the right financing option for you.
But before you plunge into taking a significant decision, take in all the pros and cons of a medium-term loan, and quickly determine whether it’s right for your business.
What Medium-Term Business Loans Offer?
Usually, medium-term business loans offer up to financing of $500,000 on monthly or bi-monthly payments. They typically carry mid-market interest rates, it is easy to secure, and these loans usually take two to three weeks to get funding via the medium-term loan.
Let’s have a quick sneak-peak into the working of Medium-Term Loans.
How Medium-Term Business Loans Work?
Medium-term loans work similarly to short-term business loans and long-term loans, with the main difference obviously being their repayment time frame. In addition to the time frame of this particular and peculiar kind of loan, medium-term loans also differ in the interest rates and qualification criteria.
Grow your company with Medium-Term Business Loans
Medium-term loans are a kind of business loan; conventional banks and online lenders usually offer them. Medium-term loans offer fixed interest rates and flexible payback terms that usually last between one to five years.
Depending on the type of loan, you typically have the option to repay in monthly or bi-monthly installments.
While collateral isn’t generally the condition for medium-term loans, lenders may request a personal guarantee to secure the loan.
What are BitX Funding’s Rates/Term for a Mid-Term Loan:
- Prime + 2.75%
- Five to ten years with no pre-payment penalties
Mid-term Business Loan Requirements:
- A minimal credit score is 670>
- Lenders may ask for collateral
- Minimum Revenue per Year $250,000
- Minimum Time in Business 2 Years
- No change in ownership within two years
The Repayment Terms for Medium-Term Loan
The conditions for medium-term loans vary from lender to lender, but medium-term loans are usually defined as loans with a repayment period ranging from two to five years.
Compared to other loans, short-term loans are repaid within a short span of two years, and long-term loans are paid off within 10 to 20 years. Usually, borrowers have to make payments on a medium-term loan every month or twice a month. Medium-term loans are available both from banks and alternative online lenders.
Medium-term loans can be a great solution to finance the expansion of your small business. But if you need a significant amount of capital for your business urgently, long-term business loans are available with flexible repayment terms and long repayment time duration.
It is to be noted that medium-term and long-term loans are most suitable for businesses that have retained good credit for so long. It’s crucial to evaluate all the available options to determine the best loan choice for your business.
Are you thinking of utilizing medium-term financing for your small business? Get in touch with the BitX Funding representative and get to know about your application procedure.
BitX Funding is the online marketplace for small business owners looking to fund a project. We specialize in connecting small business owners with lenders who will compete for your business. We believe small business owners drive the economy and we are passionate about helping your company reach its full potential.