Recommended Long-Term Business Loans of 2021

BySarah PritzkerOct. 22, 2020

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The best long-term business loans
If you're running a business and need extra capital consider a long-term business loan, with terms of at least 5 years or as long as 20. Because long-term loans are spread across time, the monthly repayments are lower than short-term loans. This makes a long-term loan a good choice if you're looking to expand, make a large investment, or need a big lump sum to fund major business strategy.

APR rates on long-term business loans average around 5.5% to 30% from online lenders, which is slightly lower than for short-term loans. The best long term business loans are great for well-established, small businesses with a good amount of collateral. The most appropriate situations for getting a long term business loan include construction, large investments like heavy machinery, working capital, or taking over an existing business, and major capital improvements. However, if you’re using a long-term business loan to finance the purchase of machinery and equipment, you should consider carefully the cost of depreciation and compare that to leasing.

The Top Lenders for Long Term Business Loans

Minimum Credit Score Time Until Funding Visit Site
Within 48 hours View Rates
Fundera 680
2 days to 2 weeks depending on the lender View Rates
OnDeck 600
As fast as 24 hours View Rates

What to Look for When Choosing a Long Term Business Loan

  1. Flexible rates: When you’re shopping for the best long-term business loan, you want as much flexibility as possible along with good interest rates. Beware of unscrupulous loan providers who hide their extremely high interest rates by highlighting the monthly payment amounts. Because spreading your payment out across a longer period of time brings down each monthly payment, you might not notice that the total amount of interest you pay across the entire term of the loan is overly high.
  2. Read the small print: As with all business loan lenders and aggregators, it’s important to read the small print to check whether the interest rates are fixed, variable, or change after a certain period of time, hidden fees and extra charges like origination charges, personal check processing charges, and late payment charges. The best long term business loans will have some flexibility in the timing of your payments each month and early repayment.

The 3 Best Long-Term Business Loan Providers:

1. Lendio


  • 10 different loan types
  • No minimum credit score    

Lendio is an online small business loan aggregator that brings business owners and lenders together on one platform. The site is free to use, and offers at over ten distinct loan programs, for every business need, from business acquisition to funding for commercial real estate, increasing your changes to find both a lender and a specific loan program that suits your needs.    

Read the Full Lendio review >>

Lendio Lendio View Rates

2. Fundera


  • Keeps information private, even from lenders
  • Highly acclaimed

Founded as an alternative to traditional bank loans, Fundera has worked hard to build a solid reputation of trust, professionalism, and competitive rates. With a wide range of loan types and flexible repayment options, Fundera gears itself towards small business loans and provides loans of anywhere from as little as $5,000 up to $5 million.

Read the full Fundera review >>

Fundera Fundera View Rates

3. OnDeck


  • 24-hour approval
  • Excellent customer service

OnDeck offers conventional business loans and lines of credit, allowing flexibility to get the loan you need. Best of all, you can have your money within 24 hours with fast approval and excellent customer service.

Read the full OnDeck review >>

View Rates


Long-term business loans can be the best way to free up capital for large investments or purchasing equipment. Each of the five loan providers reviewed here can offer you competitive and flexible long term business loans.