Multi Year Term Loan

A Multi Year Term Loan is a business term loan that has a repayment schedule over 2 to 5 years. A term loan that amortizes over several years has low monthly payments and provides better ongoing cash flow for day to day operations. In order to qualify for a Multi Year Term Loan the business must have owners with good personal credit, strong business trade credit, and good historical cash flow.

The terms and conditions of a Multi Year Term Loan are going to depend on the overall strength of the business and its’ owners. Underwriting will look at the enterprise risk of both the company, which includes; operating history, trade credit, cash flow, sales trends, deposit consistency, etc. and the owner, which includes; personal credit score, management bio’s, background checks, etc.

A Multi Year Term Loan can be used by industries that sell directly to other businesses or industries that sell directly to consumers. Based on the wide variety of ways that the money can be used and the limited restrictions or covenants that coincide with this type of financing, a Multi Year Term Loan is a perfect fit for businesses with strong credit profiles.

The application process to apply for a Multi Year Term Loan is easier then applying for both Asset Based Loans and SBA Loans. Although there is less paperwork and lower requirements, the application process still involves company financials and tax returns to be available for a lender to review.

We provided a multi year term loan for a transportation company located in Arizona. The company had 8 trucks in their fleet which were financed over 5 years and 75% paid down from the original loan amount. With the financing nearing the end of its’ term, there were repairs that needed to be made on the trucks as well as short term debt that could be refinanced over a longer time period. Our team was able to provide a 4 year term loan for $350,000 which reduced the monthly payment from $21,000 per month down to $9,000!