A short-term loan typically needs to be repaid within one to three years, while a mid-term loan usually has a two to five-year repayment period. The eligibility requirements, interest rates, and loan amounts of each type can vary. Carefully think about what repayment time frame works best for your needs as a business owner, and the repayment terms’ impact on the overall cost of any loan you accept. For example, the repayment terms for short-term working capital loans from National Funding will not https://installmentloansgroup.com/installment-loans-nv/ exceed 12 months for your first loan, with renewals extending up to 15 months.
Interest and Fees on Open Balance
Assess how much interest and fees you’ll be charged on open balances. If you take out a longer-term loan, the amount you have to pay each month may be lower.