Business loans can be repaid over anything from a few months to 30 years. The repayment period will normally be tied to the purpose of the loan. A bridging loan to cover the sale of a property, or a development loan to allow a property to be built will probably be over 6 - 18 months. A commercial mortgage could be for 30 years. A straight forward business loan for equipment or to fund growth is more likely to be over 3-5 years, possibly 10.
The normal rule of thumb is that the longer the loan is over, the lower the repayments will be and the higher the overall interest cost. You can, however, reduce the repayments on a shorter term loan if there is an event at the end of it that will allow a lump sum repayment. This could be the sale of a property, or even the business itself.
Talk to us about your circumstances and let us help you negotiate a repayment profile most suited to you.