Term Loan vs. Line of Credit: Which Is A Better Funding Option?

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TERM LOAN VS LINE OF CREDIT WHICH IS A BETTER
FUNDING OPTION
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What is Term Loan?

Eligibility criteria for term loan
A term loan is a lump sum of money lent by the
lender to the borrower, and the borrower pays it
back as per the weekly, monthly, or daily
repayments schedule.

• Min one year in business
• Min 640 credit score
• Annual revenue more than 100,000

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What is Line of credit?

Eligibility criteria for Line of credit
In line of credit, the lender transfers the money
into the borrowers account. The borrower
withdraws the money and after paying interest on
the amount that he or she withdrew.

• Min two year in business
• Min 620 credit score
• Annual revenue more than 75,000

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Repayment Terms
Line of Credit range is from six months to 5
years.
Term Loan can be up to ten years.
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Interest rate
Line of Credit ranges from 7 to 25.
Term Loan has 20 interest rate.
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When is a term loan better funding option?
When a borrower is certain about the total loan
amount, he or she should apply for a term loan.
In addition to this, for business owners who
function better with a set repayment cost, a term
loan is an ideal option.
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When a business line of credit a better funding
option?
When a borrower is uncertain of his or her
financial needs, applying for a business line of
credit is a safer option. At times, you need
funds instantly, on occasions like these a line
of credit can be beneficial.
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For more information and to apply for business
line of credit or term loans, visit Merchant
Advisors website and secure best financial
solution for your small business.
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GET IN TOUCH
E-mail
Address
Phone
9-5 Novelty Lane Suite B Essex, Ct 06426
info_at_merchantadvisors.com
[phone]
Social _at_onlinecheck