What Problems Do Long Term Business Loans Solve & What are the Benefits?

In recent years, a growing number of businesses — especially smaller and mid-sized firms — have taken advantage of short term business loans to cover everything from emergency building repairs, to hiring seasonal help, to bridging a temporary gap between accounts receivables and accounts payables, to topping-up inventory ahead of a big sale or promotion, and the list goes on.

What Problems Do Long Term Business Loans Solve & What are the Benefits?

Problems Long-Term Business Loans Solve

However, the growing popularity of short term business loans has not by any means pushed long term business loans from the lending landscape. Loans of anywhere from 12 months to 10+ years are certainly available, and are best suited to address common business problems like:

  • Buying capital equipment
  • Purchasing real estate  
  • Undertaking construction projects
  • Purchasing revenue-generating inventory or assets
  • Expanding into new markets
  • Acquiring an existing business

Some of the key benefits and advantages of long term business loans include:

Preferred Alternative to Equity Financing

Some business owners do not want to solve their long term working capital needs with equity financing, because it means giving partial ownership of their business to investors. Long term business loans enable business owners to get the funding they need, while retaining full ownership and control of their operation. Furthermore, all equity they generate belongs to them — not investors.

Supports Growth and Long-Term Profitability

As noted above, short term loans are typically used to cover unexpected cash flow shortfalls or unexpected opportunities. However, long term loans enable purchases that ultimately increase business capacity, growth and profitability. In this sense, short terms loans are best suited for cover expenses, while long term loans are ideal for supporting investments.

Learn More About Small Business Loan Solutions

At National Business Capital, we offer a range of long term loan options to suit our clients in different industries, and who have different needs and objectives — such as expanding locations, financing new or used equipment, acquiring an existing business, and so on.

We also have special programs for doctors and medical groups.
To learn more, contact our team today for your no risk, no obligation consultation. We’ll learn about your needs, educate you on your options, and empower you to make an informed financing decision that helps your business succeed and thrive now, and well into the future.

National Business Capital & Services is the #1 FinTech marketplace offering small business loans and services. Harnessing the power of smart technology and even smarter people, we’ve streamlined the approval process to secure over $1 billion in financing for small business owners to date.

Our expert Business Financing Advisors work within our 75+ Lender Marketplace in real time to give you easy access to the best low-interest SBA loans, short and long-term loans and business lines of credit, as well as a full suite of revenue-driving business services.

We strengthen local communities one small business loan at a time. For every deal we fund, we donate 10 meals to Feeding America!

About the Author, Megan Capobianco

Megan Capobianco is the Marketing Manager at National Business Capital & Services. Megan is passionate about helping business owners along their journey - providing them with relevant content they can use in their day-to-day operations.

Dislcaimer: The information and insights in this article are provided for informational purposes only, and do not constitute financial, legal, tax, business or personal advise from National Business Capital & Services and the author. Do no rely on this information as advice and please consult with your financial advisor, accountant and/or attorney before making any decisions. If you rely solely in this information it is at your own risk. The information is true and accurate to the best of our knowledge, but there maybe errors, omissions, or mistakes.