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.

What kind of business are long term business loans most suited for?

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 exansion.

How to get cheap long term business loans

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

Find out more about the different types of long term business finance here

Decide how much you need to borrow

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.

Choose a loan term?

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.

Decided you want a shorter term business loan? Compare rates here.

Look for the lowest rate

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.

Long term business loan FAQs

Q

How long can I borrow for?

A

Lenders in our business loans comparison offer terms up to a maximum of 10 years.

Q

Can I get long term business loans for bad credit?

A

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.

Q

Do I have to own the company to get a loan?

A

Not always, you can apply for some business loans if you are a registered company director.

About our loans comparison

Q

Who do we include in this comparison?

A

We include business loans available directly from lenders and through brokers on our panel. Here is more information about how our website works.

Q

How do we make money from our comparison?

A

We have commercial agreements with some of the companies in this comparison and get paid commission if we help you take out one of their products or services. Find out more here.

You do not pay any extra and the deal you get is not affected.

Last updated: 11 March, 2021