Quick answer: Small business loan terms range from a few months to 25 years depending on the type. Short-term and working capital loans usually run up to about 18–24 months, many business term loans run 1 to 5 years, lines of credit renew or run 1–3 years, and SBA loans can run up to 10 years for working capital and equipment and up to 25 years for real estate. Brookestone Funding business loans offer terms up to 36 months.
Repayment terms by loan type
| Loan type | Typical term | Payment frequency |
|---|---|---|
| Short-term / working capital loan | 3–24 months | Daily, weekly or monthly |
| Business term loan | 1–5 years | Weekly or monthly |
| Business line of credit | Revolving, often reviewed yearly | Based on balance drawn |
| Equipment financing | Often matched to equipment life, 2–7 years | Monthly |
| SBA 7(a) | Up to 10 years (25 for real estate) | Monthly |
| SBA 504 | 10, 20 or 25 years | Monthly |
How term length changes your payment
A longer term lowers each payment but usually increases the total amount you repay. A shorter term costs less overall but requires bigger payments. For example, on a hypothetical $100,000 loan at a 10% annual rate, a 36-month term is about $3,227 a month (about $116,000 total), while a 60-month term is about $2,125 a month (about $127,500 total).
How to choose the right term
- Match the term to the use. Short-term needs like inventory fit short terms; equipment and expansion fit longer terms.
- Test your slowest month. The payment should still be comfortable.
- Ask about prepayment. Know whether paying early saves interest or triggers a penalty.
- Compare total repayment, not just the payment amount.
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- Business Term Loan vs. Line of Credit: Which Is Better for Your Business?
Frequently Asked Questions
How long are most small business loans?
It depends on the type. Short-term loans often run up to 24 months, term loans 1–5 years, and SBA loans up to 10 or 25 years. Brookestone Funding offers terms up to 36 months.
Is a longer business loan term better?
A longer term lowers each payment but usually costs more in total. Choose the shortest term whose payment fits comfortably in your slowest month.
Can I pay off a business loan early?
Often yes, but check the prepayment terms. Some loans save interest if paid early; others charge a fee or have a fixed total cost.
Are business loan payments daily, weekly or monthly?
It varies by lender and product. Many short-term products use daily or weekly payments; term loans and SBA loans usually use monthly payments.
Need financing? Brookestone Funding offers business term loans, lines of credit and SBA loans from $10,000 to $2,000,000, with same-day funding available for qualified businesses. We’re rated 4.5 on Trustpilot by more than 240 customers. Apply in minutes, see our business loan options, or call 212-258-0602.
