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BitX Funding offers you mid-term business loans with automatic monthly payments, making the payback process even easier. If you’re looking for loan options for larger projects, while allowing you to pay back over a longer term with rates as low as 4.99%, our medium-term business loans might be right for you. Term options are 12 to 60 months with traditional monthly payments and unsecured loans starting at $25,000 to $500,000.
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Starting a business or keeping an existing one afloat can be a challenging and expensive endeavor. It is not uncommon for business owners to encounter unexpected expenses, such as equipment breakdowns, market fluctuations, and changes in consumer demand. To overcome these challenges, many business owners turn to mid-term business loans.
Mid-term business loans are a type of financing that offers a middle ground between short-term and long-term loans. They are designed to provide a larger sum of money than short-term loans, with longer repayment terms and lower monthly payments than long-term loans.
We will explore the different types of mid-term business loans available, the pros and cons of each, and what you need to know to find the right fit for your business.
Understanding Different Types of Mid-Term Business Loans
Mid-term loans are a type of financing that provides businesses with funds over multiple months to a few years. There are numerous types of mid-term loans that businesses can consider, each with its unique features and benefits.
It is important to carefully consider the different types of mid-term loans available and choose the one that best fits the needs and goals of your business. Factors such as repayment terms, interest rates, and loan amounts will vary among the different loan options.
Mid-term business loans have repayment terms between one and five years and carry interest from 5% to 20% APR. These loans require a better credit score, higher revenues, and a longer time in business than short-term cash flow loans. However, they also have lower APR, longer repayment terms, and lower monthly payments. Additionally, they can be financed within seven days, and they are ideal for small business loans.
Medium-term business loans are great for business owners that want quick capital and are willing to trade for fast approval and lower underwriting guidelines vs. SBA 7a, but the tradeoff is higher interest rates. Mid-Term loans typically are also a better choice than Short-Term Loans because, for a little more work, you can save a lot on financing.
A mid-term loan could be a great choice if your business has grown past the startup phase. A medium-term business loan often has a lower APR and longer repayment term ― typically one to five years ― than a short-term business loan. These loans are a good way to finance equipment or growth capital for your business.
To apply for a mid-term business loan through BitX Funding, certain requirements must be covered. The eligibility criteria typically include factors such as the financial stability of the business, credit history, and length of time in operation. The application process is straightforward and can be completed online. As for documentation, a small business owner will need to provide financial statements, tax returns, and other relevant business records to support the loan application. It is important to carefully review the requirements and gather all necessary documents to ensure a smooth and successful application process.
Two of the more popular lenders that supply mid-term alternative business loans are Funding Circle and Lending Club. Each has an easy online business loan application process and can get you funded in around one week.
Funding Circle is particularly significant for businesses with solid EBITDA (growth). Not only that, it is designed to be veteran-friendly, providing better alternative lending options to businesses owned by veterans or family members of veterans.
Large banks are starting to get into the mix by offering up to $100K, low doc, the application only, and mid-term bank loans for business owners with a 700 FICO score or better.
The Bottom line is:
Traditional business term loans are a broad category of business financing available from traditional banks and alternative non-bank lenders.
The application process for medium-term business loans is completed online through the BitX Funding website. You will be prequalified for these loans in a matter of minutes and have the complete application for the loan submitted in less than an hour. Approval typically occurs within two to three business days, and funding is generally received weekly.
Documentation requirements for all alternative lending options in this list vary, and most have minimal requirements. The lender will likely require documentation beyond your basic personal and business information when applying for a medium-term business loan. To complete your application, you can expect to turn in personal and business tax returns, bank statements, an income statement, a profit & loss (P&L) statement, and your current balance sheet.
The documents you will need to give along with your medium-term alternative business loan application are:
If you’ve been in business for more than 2 years, have a credit score of 650 or higher, and generate at least $250,000 in annual revenue, we recommend applying with BitX Funding for your next Mid-Term business loan.
The point of a Mid-Term business loan: is to help you finance something big for your business that will require a longer ROI, whereas a Short-Term loan would not support the goal.
Whether you need to make equipment or inventory purchase, want more working capital, need to refinance other business debts, are looking to meet tax or payroll obligations, or something else entirely, a Mid-Term business term loan can help you out.
And as it turns out, there are few loan use restrictions, if any—though it’s best practice to spend that money creating more revenue for your business.
Since obtaining a loan involves incurring costs, you aim to end up with more funds than you started with. If used the right way, traditional term loans can help you push your business to the next level—introducing new equipment, locations, products, or marketing campaigns into your toolbox.
Plus, remember that a business term loan is predictable.
You should be able to figure out whether a term loan will help or hurt your business from the get-go. Just understand the calculations beforehand and plan the coming months or years of spending carefully.
You should know how much the financing will cost you, no matter what type of financing you’re applying for.
Thankfully, the price tag of a business term loan is easy to figure out, and it tends to be affordable.
Let us examine an example related to cost:
Let us say you have qualified for a business term loan.
In this medium-term business loan offer, you’re borrowing $25K from a lender at an 18% interest rate and a 5-year term.
Given the longer length of that traditional term loan, you’ll most likely have a monthly payment of about $634.
That’s a predictable expense you can easily understand and plan your financials around.
Small business term loans, like other business loans, can also come with fees attached to the loan. These fees could be origination fees, packaging fees, or prepayment fees.
Don’t overlook fees on your loan offer—be sure to factor in any small fees you might have to pay to understand the true cost of your loan.
Long-term business loans are a business financing option for established businesses that require a large amount of capital at lower interest rates for growth. You can repay for one year or longer, typically in monthly installments. The advantages of long-term business loans are low-interest rates and more convenient payments because payments are spread out over a long period.
A long-term business loan provides a sum of money to a business holder, which he can use for any purpose. The best thing is that it includes the working capital, buying equipment, expanding a property, and various other business needs. Business owners rely on funding options to fuel the business requirements for growth and success.
Rates and terms for medium-term alternative business loans vary. The general terms for these business loans include loan amounts up to $500,000, APR between 10% to 20%, fixed interest rates, and repayment terms of one to five years. The lender will likely charge an origination fee between 0% to 9%, and you can expect funding within one week.
The typical rates when applying for a medium-term loan with an alternative business loan are:
Example of a $25K, 5-year term loan, 15% interest rate = $634 a month
BitX Funding is a trusted and authoritative source for mid-term business loans due to our ability and experience in the field. Our company has been in business for over 10 years, building a reputation for providing quality service to our clients. Our commitment to customer satisfaction is evident in our positive ratings on reputable review websites such as Trustpilot and the Better Business Bureau. Additionally, we offer a marketplace that connects our clients with the right lender and loan tailored to their specific needs. This ensures that our clients receive the best possible financing options available to them, and reinforces our position as a leader in the mid-term business loan industry.
At BitX Funding, we understand the importance of securing the right financing for your business. Our mid-term loan options are designed to meet the unique needs of small businesses, supplying quick access to funds to help your business grow and succeed. With flexible repayment options and competitive interest rates, a mid-term loan with BitX Funding can provide the financial support your business needs to reach its goals.
So why wait? Take the next step towards securing the funding your business needs to thrive. Contact us today to learn more about our mid-term loan options and how we can help you get the financing your business needs. Don’t miss this opportunity to grow and succeed. Apply now!
Medium-term loans are business loans that are offered by BitX Funding, conventional banks, and alternative lenders. Medium-Term Loans typically possess fixed interest rates and flexible payback terms. Medium-Term loans usually last from one to five years.
Depending on the niche of the loan, you typically have the option to repay in monthly or bi-monthly instalments.
A medium-term loan could be a great solution to fuel up your upcoming or new business project. Finance your business with the amount of funds you need, and they lubricate your business growth if you need a large amount of capital and flexible repayment terms.
And if your small business has been operating for years then you can apply for medium-term loan with good personal credit and a profitable business. It is important to evaluate all the available options to determine the best loan for your business.
So, if you are going to apply for a medium-term loan, let things go the smoother way as Medium-term loans work similarly to short-term business loans and long-term loans. The main difference in medium-term loans falls within the repayment time frame
In addition to the time frame, medium-term loans vary in the interest rates and qualification standards.
If your business is in the need of cash and you are looking to solve business needs, then do not look to far as medium-term loans are a great funding option. Following are the steps to qualify for a medium-term loan,
● Your personal credit score must be in good shape which should generally fall in the 680+ range
● Your business should be profitable in the past and present.
● For some lenders, you might have to put down some collateral. Providing collateral on a medium-term loan is generally an exceptional case because some banks or online lenders acquire it.
● Your business should be operating for at least two years and it should be producing revenue.
Medium-term bank loans typically have a starting interest rates of 10%, while alternative short-term loans have interest rates as high as 30 percent. With a Medium-Term Loan, you can have access to up to $500,000 funds to spike up the growth of your business.
They occupy a sweet spot between short-term loans and long-term SBA 7a loans. As short-term loans aren’t enough to fulfil your business needs or maybe the other way can be a bit expensive for some long-term loans. But it is evidently clear that long-term loans require too much of a commitment.
● Larger and Fully Fledged Loan Amount- You can lubricate your business growth with a significant amount of funds, they usually offer funds up to $500,000.
● Repayment Terms- These loans have flexible repayment terms that usually last from 2-5 years.
● Lower monthly payments- You have a flexible
● Fixed APRs- Interest rates are fixed prior to any contact for medium-term loans.
●Longer Application Process- Medium-term loans ask for more paperwork and possess a longer turnaround than short-term loans. But in contrast to other loan terms specifically, long-term loans medium-term loans are still quick to get.
●Harder to Qualify- Qualification for medium-term loans that differ from lender to lender. And these loans ask for some sort of collateral and alongside there is still a long documentation process for your business to cover.
BitX Funding is your online marketplace for small business loans. From SBA, start-up lines of credit, short-term loans, mid-term loans, and invoice financing to merchant cash advances and lines of credit, BitX Funding is where lenders compete for your business. Our top-rated lenders focus on real-life business data and cash flow, which means you can qualify for a loan even if your credit score isn’t perfect. What differentiates us from the competition is that with a brief questionnaire, our highly trained loan consultant will listen to your needs and match you with the appropriate funding. You can go at it alone and spend hours online trying to find funding for your business, or you can have a one-stop experience with BitX Funding and our direct connection with the lenders.