WHAT IS A TERM LOAN?

 A type of loan that requires no collateral to be repaid over time, with a set cost of capital and fixed installments that can be weekly or monthly. They provide quick capital when your cash flow is low.

Different working capital products will help a business owner to meet the needs that the business may present. 

In this article, we show you more details about the fixed-term loan, a product offered by Capifinders.

A term loan has shorter repayment terms than traditional loans and is a desirable option for businesses seeking working capital.

The following deadlines are managed:

• SHORT-TERM: 3 to 18 months

• MEDIUM TERM: 18 TO 36 months

WHAT IS THE FREQUENCY OF PAYMENTS ON A FIXED-TERM LOAN?

This type of loan always has a fixed frequency and a fixed payment amount, whether weekly, biweekly, or monthly.

HOW IS INTEREST CALCULATED ON A FIXED-TERM LOAN?

In fixed-term loans, there are two types of calculations for the cost of capital: APR or simple interest. 

Annualized rate(APR), expressed as a percentage representing the annual cost of funds over the loan term is amortizing. 

APR measures the total cost of a loan, including interest and fees.

On the other hand, simple interest is a non-amortizable flat fee directly on the loan amount; for example, a loan of $40,000 may have a simple interest rate of 20% for 18 months. In this case, it is not amortizable because it corresponds to a fixed rate on the principal amount borrowed. 

WHAT ARE THE REQUIREMENTS TO APPLY FOR A FIXED-TERM LOAN?

• Have at least one year with the business legally incorporated.

• Have a credit score of at least 600 points.

• Monthly income of at least $20,000.

It is imperative to emphasize that Capifinders seeks to help minority business owners to be able to access the financing they are looking for according to their needs,

to be an alternative for those who, for multiple reasons, have been rejected in the past by financial institutions.

Apply here for a fixed term loan with simple documentation and minimum requirements, we will contact you right away for free advice.