Best Long-Term Business Loans of 2020

BySarah PritzkerJun. 30, 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 ScoreTime Until FundingVisit Site
TorroNoneWithin 48 hoursView Rates
Fundera5002 days to 2 weeks depending on the lenderView Rates
OnDeck600As fast as 24 hoursView 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. Torro


  • No collateral required
  • Approval in under 48 hours

Torro offers five main types of business funding for new and existing companies, including startup funds, working capital loans, and merchant cash advances. The application process is simple, approval is fast, and funding is usually received within 48 hours.

Read the full Torro review

Torro Torro 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.