A business term loan is a loan that is typically used by small business owners.

The repayment terms and fee structure are usually straightforward. Borrowers usually receive the money and agree to pay it back in regularly scheduled payments over a set period of time, known as the loan term. In most cases, fixed monthly payments are made for the entire loan term.

The amount of the loan, known as the principal, plus interest, which is the fee lenders charge for borrowing the money, determines the total amount that will be paid back over the loan term. Business term loans can come with either fixed or variable interest rates.

Term loans are typically repaid over a longer period of time than other types of loans, such as lines of credit or credit cards. This makes them a good choice for small businesses that need to finance larger projects or expenses.