More from business loans
Last updated: 11 March, 2021
For many small and medium sized businesses, short term borrowing not only puts a lot of pressure on cash flows, but also limits the amount they can affordably borrow.
Long term business loans, often known as long term commercial loans, are thus designed to provide your business with the capital they need to grow as as part of a long term strategy to grow the business.
This can include growing your workforce, upgrading essential equipment or simply providing the working capital needed for day to day running costs of the business.
Some businesses may possibly benefit more from a long-term loan than others, such as:
A start-up may have the most to gain from a long-term business loan. Start-ups are usually in need of cash due to high start-up costs so a long-term loan can give them the funds they need to launch their venture, while still keeping the monthly payments manageable.
A business that's looking to expand could also make use of a long-term business loan as it can provide the funds needed to carry out the expansion.
When looking or a long term business loan, there's some basic questions you need to answer:
How much your business needs to borrow
How long you need to pay back the loan
What type of business loan works best for your company
The lenders in this comparison offer long term business loans of just a few thousand pounds up to large loans of £500,000 or more.
Work out exactly how much your business actually needs to borrow and keep the amount as low as possible to make your loan cheaper.
Picking a longer term can reduce the monthly repayments, making the loan more affordable. So some businesses may consider a 5 year or 10 year business loan.
All the lenders listed in this comparison offer long term business loans that can last for five years or longer.
However, try not to choose a term of your loan longer than your business needs. The longer the term the more you have to pay in interest.
You are now ready to start comparing interest rates for the loan amount and term you have chosen for your business.
Use our comparison to check long term business loan interest rates that last 5 years or longer to find the cheapest deal.
Lenders in our business loans comparison offer terms up to a maximum of 10 years.
Yes, as long as you can show your business can afford the loan you should be able to borrow, but it may be more expensive.
Not always, you can apply for some business loans if you are a registered company director.
Our comparison tables include providers we have commercial arrangements with. The number of listings in our tables can vary depending on the terms of those arrangements, as well as other market developments. They are all from lenders regulated by the Financial Conduct Authority (FCA). Here is more information about How our website works.
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