Does your business need access to additional capital?
Businesses need access to capital to promote growth. There are many different situations you could encounter during your business lifecycle. Each one may have a different type of financial need. Getting a loan is the most common source of additional capital for businesses. One of the most common is term loan financing. While you can get access to these loan types via the bank, you have other options, including us at Beacon. We work for business from all types of industries. Beacon’s Corporate Finance Advisory group has strong connections with a large network of capital providers. This enables us to help you find the right term loan financing agreement and help you negotiate the best financing terms, based on your needs and financial situation.
A term loan allows you to borrow a specific amount of money and repay it over a fixed period of time. They are often categorized as short term loans, intermediate term loans, or long term loans. For example, a short term loan may be 1 -2 years, whereas a long term loan could be anywhere from 5 to 25 years. The shorter the loan term, the higher your loan payments will be. The amount you borrow is spread out over the loan term. The longer the loan, the more interest you will pay over time.
Term loans give you more control over your finances and make it easier for you to plan your finances. You know the date and amount when you make payments. This is ideal for financial planning and balancing your books. You’ll also know the date of your final scheduled payment. In most cases, there is no penalty for paying your loan off early, which is another great advantage of this type of financing.
There are many different situations where a term loan may be your best borrowing option. They include:
- To help manage cash flow
- To purchase equipment or product inventory
- When renovating or opening a new location
- To make real estate investments or payments
Applying for term loan financing is a straightforward process. All you will need is to provide some basic information about your business and a bank or financial statement. This information is used to determine how much of a loan you qualify for from the lender. Overall, there is a lot of flexibility with these types of loans, a reason why they are attractive borrowing options for small businesses across Canada.
Beacon is dedicated to providing term financing solutions and M&A advisory services to small and medium-sized businesses. Our corporate finance advisors at Beacon work hard to help you get access to the capital you need, when you need it. We offer flexible solutions from a diverse group of lenders, giving you more options than traditional banks.
Are you in need of some extra capital? Contact us today to learn more about your options for term loan financing. We’ll work with you to ensure you get the funds you need to support your business goals.