What Problems do Long Term Business Loans Solve & What are the Benefits?
In recent years, a growing number of businesses — especially smaller and mid-sized firms — have taken advantage of short term business loans to cover everything from emergency building repairs, to hiring seasonal help, to bridging a temporary gap between accounts receivables and accounts payables, to topping-up inventory ahead of a big sale or promotion, and the list goes on.
However, the growing popularity of short term business loans has not by any means pushed long term business loans from the lending landscape. Loans of anywhere from 12 months to 10+ years are certainly available, and are best suited to address common business problems like:
- Buying capital equipment
- Purchasing real estate
- Undertaking construction projects
- Purchasing revenue-generating inventory or assets
- Expanding into new markets
- Acquiring an existing business
Some of the key benefits and advantages of long term business loans include:
Preferred Alternative to Equity Financing
Some business owners do not want to solve their long term working capital needs with equity financing, because it means giving partial ownership of their business to investors. Long term business loans enable business owners to get the funding they need, while retaining full ownership and control of their operation. Furthermore, all equity they generate belongs to them — not investors.
Supports Growth and Long-Term Profitability
As noted above, short term loans are typically used to cover unexpected cash flow shortfalls or unexpected opportunities. However, long term loans enable purchases that ultimately increase business capacity, growth and profitability. In this sense, short terms loans are best suited for cover expenses, while long term loans are ideal for supporting investments.
At National Business Capital, we offer a range of long term loan options to suit our clients in different industries, and who have different needs and objectives — such as expanding locations, financing new or used equipment, acquiring an existing business, and so on. We also have special programs for doctors and medical groups.
To learn more, contact our team today for your no risk, no obligation consultation. We’ll learn about your needs, educate you on your options, and empower you to make an informed financing decision that helps your business succeed and thrive now, and well into the future.