Best Long-Term Business Loans of 2020

The best long-term business loans will provide flexible repayment terms and competitive interest rates. These loans can give you the cash on hand you need to grow your business and invest in success. Long-term business loans can be used for a wide variety of business-related expenses, and usually offer longer repayment terms and lower monthly payments than short-term business loans. However, they may also be more difficult to qualify for. Even if you have bad credit, there are still a variety of loan options available. When applying for a loan, you should consider multiple lenders in order to find the best deal possible.

The 6 best long-term business loans of 2020

Lender APR Loan Amount Terms Eligibility
Lending Club 4.99% – 29.99% $5,000 – $500,000 6 months to 5 years In business for 1 year, over $50,000 in annual sales
Smart Biz 4.75% – 7% $30,000 – $5,000,000 10 – 25 years In business over 2 years, U.S. citizen or legal resident, personal credit of at least 650
Street Shares 7% – 29.99% $2,000 – $250,000 3 – 36 months In business for at least 1 year, preference for veterans
National Funding 5% – 8% $5,000 – $500,000 3 – years Small business
Funding Circle 6% – 8% $25,000 – $500,000 varies Small business, in business for 2 years, personal credit of at least 660
American Express 6.98% – 19.97% $3,500 – $75,000 6-36 months Must be a card holder

Lending Club – Best marketplace lender

Lending Club is a peer-to-peer lending marketplace with great rates and flexible term lengths.

Interest rate
4.99% – 29.99%
Terms
1 to 5 years
Loan amount
$5,000 – $500,000
SimpleScore
2.4 / 5.0
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SimpleScore
Lending Club – Best marketplace lender
2.4
  • Rates
    5
  • Loan Size
    5
  • Customer Satisfaction
    4
  • Support
    5
  • Fees
    5
Lending Club is a peer-to-peer lender offering flexible long-term business loans with loan amounts ranging from $5,000 to $500,000 and terms lengths from six months to five years. The lender offers a quick and easy online application process and customer support every step of the way. In order to qualify, borrowers should be in business for 12 months or more and make at least $50,000 in annual sales. Lending Club doesn’t require a visit to your business or any business plans or projections. While there is no prepayment penalty, it does charge an origination fee of 3.49% – 7.99%.
Full review

Our Two Cents — Lending Club has solidified itself as a prominent peer-to-peer lender that funds personal and business loans alike. But its lack of product variety leaves something to be desired.


Smart Biz – Best SBA loans

Smart Biz helps businesses secure SBA loans with great rates through a streamlined application process.

Interest rate
4.75% – 7%
Terms
10-25 years
Loan amount
$30,000 – $5 million
SimpleScore
4 / 5.0
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SimpleScore
Smart Biz – Best SBA loans
4
  • Rates
    5
  • Loan Size
    5
  • Customer Satisfaction
    4
  • Support
    5
  • Fees
    5
While applying for SBA loans can be a daunting process, Smart Biz helps businesses secure long-term SBA loans through their network of banks and other lenders.

There are a variety of fees associated with securing an SBA loan from Smart Biz, including an application fee of up to $3,000 and an SBA guarantee fee of 1.70-3.75% depending on the loan amount. The funding process can take a week or more, so Smart Biz isn’t a good option for businesses that need funds fast. However, they make the process of applying for and securing an SBA loan relatively painless – and loans come with the gold standard combo of long term lengths and low rates.

Full review

Our Two Cents — Applying for an SBA loan has never been easier than with Smart Biz, which leverages technology for fast applications and approvals. Instead of weeks of paperwork filing, Smart Biz has your approval decision within one application.


Street Shares – Best for same-day funding

Street Shares offers long-term business loans that can have funds in your account in as soon as a few hours.

Interest rate
7% – 29.99%
Terms
3 – 36 months
Loan amount
$2,000 – $250,000
SimpleScore
3.8 / 5.0
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SimpleScore
Street Shares – Best for same-day funding
3.8
  • Rates
    5
  • Loan Size
    5
  • Customer Satisfaction
    4
  • Support
    5
  • Fees
    5
Street Shares is another peer-to-peer lending organization that offers competitive rates and fast same-day funding. In order to qualify, borrowers must be U.S. citizens and have been in business for at least one year. Street Shares doesn’t charge an application fee or prepayment penalty, so borrowers are free to pay off their loan anytime. The lender is particularly interested in helping small business owners who are veterans, so you may want to give it special consideration if you’ve served in the armed forces.
Full review

Our Two Cents — Armed forces veterans reap the benefits of business loans through Street Shares, as the lender focuses on veteran-owned small businesses. With decent rates and high loan amounts, it secures its spot in best long-term business loans.

National Funding – Best for early payoff discount

National Funding offers fast, reasonably priced loans, with a discount for early payoff.

Interest rate
5% – 8%
Terms
2 – 5 years
Loan amount
$5,000 – $500,000
SimpleScore
4.2 / 5.0
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SimpleScore
National Funding – Best for early payoff discount
4.2
  • Rates
    5
  • Loan Size
    5
  • Customer Satisfaction
    4
  • Support
    5
  • Fees
    5
National Funding offers small business loans with reasonable rates. You can prequalify for a loan, and funds may be deposited into your account in as little as 24 hours. However, it does also offer an early payoff discount, so it might be a good choice if you think you’ll be able to pay off your loan earlier than the term length. Depending on your loan, you may be eligible for a 6% to 7% early payoff discount if you pay off the balance of your loan in full before your contract ends. Overall, National Funding provides a wide variety of loans for a multitude of industries, making it a good choice for plenty of business owners.
Full review

Our Two Cents — National Funding’s unique payment plans make it stand out against competitors, as well as its high loan amount. Furthermore,instead of prepayment penalties, it offers early payment discounts for qualified borrowers.


Funding Circle – Best for small businesses

Funding Circle offers peer-to-peer lending services with a special emphasis on helping finance small businesses.

Interest rate
6%
Terms
Up to 10 years
Loan amount
$25,000 – $500,000
SimpleScore
3.6 / 5.0
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SimpleScore
Funding Circle – Best for small businesses
3.6
  • Rates
    5
  • Loan Size
    5
  • Customer Satisfaction
    4
  • Support
    5
  • Fees
    5
Funding Circle is a peer-to-peer lender that helps small businesses secure the funds they need to succeed. The lender has a special focus on small businesses over larger corporations, making it a good fit if you own a small business and are looking for a long-term loan. In order to be eligible, businesses must have been in business for at least two years, and business owners must have a personal credit score of at least 660. There are no prepayment penalties, so you can repay your loan at any time. Funding Circle does charge an origination fee of 3.49% to 6.99%, which is automatically deducted from your loan. You can have funds in your account as soon as the next business day, so Funding Circle is a good option if you prefer not to have to wait.
Full review

Our Two Cents — Fast funding is important for small businesses who need the flexibility to cover unexpected growth or unexpected emergencies, which is where Funding Circle excels.


American Express – Best for credit card customers

For business owners who already have an American Express card, the lender also offers competitive priced long-term business loans.

Interest rate
6.98% – 19.97%
Terms
6 – 36 months
Loan amount
$3,500 – $75,000
SimpleScore
3.4 / 5.0
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SimpleScore
American Express – Best for credit card customers
3.4
  • Rates
    5
  • Loan Size
    5
  • Customer Satisfaction
    4
  • Support
    5
  • Fees
    5
American Express is best known as an issuer of credit cards with robust rewards programs. However, the company also issues business loans that can help businesses to get ahead. Loan amounts start at just $3,500, so they’re a good fit whether you need a small amount of money or a large influx of cash up to $75,000. Applicants can receive a decision in seconds, and applying won’t affect your credit score. If approved, you’ll receive your funds within 3 to 5 business days. American Express is a good choice if you already use its credit card services since business loans are only available for existing members.
Full review

Our Two Cents — American Express business loans are good for businesses that already use the credit card giant’s products. But its low loan amounts hold it back from better marks.

What is a long-term business loan?

Long-term business loans usually come with higher loan amounts and longer-term lengths than traditional short-term business loans. In some cases, term lengths can be as long as 25 years and can represent a substantial investment in the growth of a business. Long-term business loans can be used to purchase equipment, sustainably scale business growth, and invest in the future of your business.

How should I choose the right long-term business loan?

The right long-term business loan for you depends on a number of factors, including how you plan to use the loan and what loans you’re eligible for. If you’re a successful and well-established business, you may be able to qualify for competitive SBA loans. If not, there are a variety of other options available, including loans for equipment financing, loans specifically for small businesses, and more. In order to choose the right long-term business loan for you, you should:

  • Research different lenders and loan options.
  • See which loans you’re eligible for based on lender requirements, and check if you’re able to prequalify.
  • Compare rates in order to ensure you’re getting the best deal possible.
  • Consider additional perks, like early payoff discounts and same-day funding.
  • Secure all necessary personal and business documents, including annual income and tax info.
  • Apply to the loans that best suit your needs.
  • Select a loan that offers the best possible rates and benefits.

How to qualify for a long-term business loan

To qualify for a long-term business loan, there are a few steps you should complete:

  • Research different loan providers: Be sure to do your research on lenders and note the eligibility requirements for each application. Many of them will consider certain years in business, monthly or yearly revenue and credit score requirements.
  • Gather important documents and info: Gather the information to satisfy the requests that a lender will make in order to come to a lending decision for your application, such as payroll, revenue, credit score and more.
  • See if you prequalify: In some cases, you may be able to prequalify for a long-term business loan, which can give you a better sense of what loans work for you and won’t harm your credit.
  • Officially apply for a loan: Once you’ve done your research and prequalified for any loans that offer it, apply for the long-term business loan that best meets your needs.

The bottom line

Long-term business loans can be a great way to sustainably scale your business. In general, long-term business loans feature larger loan amounts, longer term lengths, and lower monthly payments. In most cases, you should only pursue a long-term business loan if you have a substantial business expense that requires a large loan and may take years to fully pay off. If you only need an infusion of cash in the short-term, you should consider a short-term business loan.

Methodology

The SimpleScore was created with you in mind, to simplify the process of making complex business loan decisions, for your peace of mind – and wallet. We rated top business lenders based on five different categories: fees, interest rates, loan amounts, resources and product variety.

We also lean on our editorial expertise and industry knowledge to help choose and rank each company. Our ratings are meant to be a directional and helpful tool to help you in the process of choosing a business loan provider. Be sure to continue your research and shop around for the best business loan that fits your specific needs.