For small business owners, this option brings the possibility of being able to quickly access cash when they need to make an equipment purchase.
Like the name says, term loans need to be repaid over set periods, in the same way as car loans or mortgages. The APR on one is comparable to what you would see with offerings from equipment financing companies and can be either variable or fixed based on what the lender is offering. It is also possible to get either a secured or unsecured version, which would generally depend on the amount sought to borrow. If the idea is to not set up equipment as collateral, then a secured term loan would require setting up some other business asset in that stead.
Term loan lenders typically require higher credit standards compared to lenders of equipment loans. Where it would be possible for a business to get the latter with a credit of 600 or thereabouts, term loan approval would generally demand no less than two years in the business, group with a credit of around 660 and annual revenue of $200,000.