Traditional Term Loans

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Simple & Straightforward Financing for Your Business Needs

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What is a Traditional Term Loan?

A business term loan is the traditional form of financing that comes to mind for many small business owners seeking funding. Its repayment terms and fee structure are straightforward and easy to understand. When approved for a term loan, borrowers receive a specific amount of money and agree to repay it through regular, predetermined payments over a set period, known as the loan term. Typically, these payments are made on a monthly basis, providing a predictable schedule.

In addition to repaying the principal amount borrowed, borrowers also pay interest, which is the fee charged by lenders for borrowing the funds. The simple interest rate determines the cost of borrowing and affects the total amount to be repaid over the loan term. Business term loans can come with either fixed or variable simple interest rates. With a fixed rate, the interest remains unchanged throughout the loan term, offering stability and predictability. On the other hand, variable rates are tied to external factors such as the Wall Street Journal Prime Rate and may fluctuate over time.

Many small business owners prefer the peace of mind provided by fixed interest rate business term loans. The stability offered by a fixed rate allows borrowers to plan their finances more effectively, knowing that their interest rate and monthly payments will remain consistent over the loan's duration.

Benefits of a Traditional Term Loan

  • Straightforward Repayment Schedule

  • Predictable Payments

  • Fixed Low Simple Interest Rates Starting at 1%/month

  • Approvals Up to 200% of Average Gross Monthly Revenue

  • Terms from 1-4 years

  • Financing for Any Business Need

How To Apply For a traditional term loan:

Paxton Martin Finance offers a streamlined process for our Traditional Term Loan Program. Here are easy steps you can follow to apply:

Step 1: Determine Why you need financing

Before applying, make sure you ask yourself these questions:

  • What will I use the financing for?

  • How quickly will I see a return on my investment?

  • What payment amount am I comfortable with making?

  • How soon do I need access to the funds?

Step 2: Gather Your Documents

Traditional Term Loan applicants must provide the following information and documents:

  • Driver’s License

  • Business Voided Check

  • Bank Statements From the Past Three Months

Step 3: Complete Our Application

Applying for a term loan is quick and convenient, taking only a few minutes of your time. We offer two simple options for the application process. You can easily fill out our one-page traditional term loan financing online application at your convenience. Alternatively, you can reach out to us directly, and our dedicated account manager will assist you every step of the way, providing personalized guidance throughout the application process.

Step 4: Speak to a Representative

After submitting your application, a senior account executive will promptly reach out to you. During our conversation, we will carefully evaluate and discuss the most suitable traditional term loan financing options for your needs. We value transparency and guarantee that there are no hidden fees or unexpected surprises. You will receive clear and precise information about the loan options available to you, including rates and terms, allowing you to make informed decisions about your traditional term loan financing choice.

Step 5: Receive Funds via Wire/aCH 

Once you have signed the contracts to formalize the details discussed with our senior account executive, we proceed with a swift funding call. Upon completion of the call, you will have the flexibility to choose between two convenient options for receiving the funds: an instant wire transfer (carries a $25 wire fee) or a secure transfer via ACH.

Traditional Term Loan FAQs

  • To qualify for our traditional term loans, we require:

    • Annual Gross Revenue Above $50,000

    • FICO Score Over 500

    • At Least 6 Months Time In Business

    • Active Business Bank Account

  • From the moment you submit your application documents, we pride ourselves on our swift and efficient process. Our goal is to get the funds into your account as quickly as possible, typically within 24-48 hours. We understand that time is of the essence when it comes to your business needs, and our streamlined procedures ensure a prompt transfer of funds. You can count on us to expedite the process and provide the financial support you need in a timely manner.

  • Absolutely not! Our Traditional Term Loans are designed to be flexible and convenient for your business needs. They are unsecured loans, meaning you don't need to provide collateral to secure the loan. This program offers a wide range of applications, whether you require funds for inventory purchases, expanding your operations, boosting working capital, or covering essential expenses like payroll. The choice is yours, and we are here to support your business every step of the way.

  • Yes, indeed!

    While some loans may have prepayment penalties to protect the lender's interests, others provide an opportunity to save on interest through early repayment. Paying off business term loans ahead of schedule depends on factors like the interest rate and loan terms. It's worth noting that many business loans offer lower interest rates compared to alternative financing options, making it more beneficial to focus on paying off higher interest rate credit cards or credit lines first.

    To make an informed decision, it's important to discuss prepayment options and associated terms with the lender. This way, you can ensure your financial strategy aligns with your goals before proceeding with the loan.

  • Absolutely! We value your proactive approach towards early repayment, and we are pleased to offer discounts for such instances. If you are considering paying off your term loan ahead of schedule, we encourage you to reach out to us. Our dedicated team is ready to discuss all the available options with you, ensuring that you receive the most favorable terms and benefits. Give us a call today, and let's explore how we can support your financial goals and provide incentives for your early repayment.

  • We strive to provide a streamlined process, allowing you to concentrate on your business without unnecessary complications. With our system, payments are conveniently and automatically deducted from your business bank account based on the agreed-upon terms. This hassle-free setup ensures that you can maintain a smooth cash flow while meeting your repayment obligations effortlessly.