What It Is
A lump sum loan given upfront, repaid over 10 years (120 monthly payments).
Payments are usually fixed (same every month) but can be variable if tied to prime/SOFR.
Can be secured (with real estate, equipment, or business assets) or unsecured (higher rates, harder to qualify).
Commonly used for big-ticket investments—real estate, equipment, expansion, acquisitions, or refinancing debt.
Key Benefits
1. Manageable Monthly Payments
Spreading repayment over 10 years lowers the monthly burden compared to short-term loans.
Helps preserve cash flow for payroll, marketing, and operations.
2. Lower Interest Rates
Long-term loans tied to prime or SBA structures usually carry much cheaper rates than short-term funding, MCAs, or credit cards.
3. Ownership & Equity Building
If used for real estate or equipment, you end up owning the asset outright after payoff.
Builds long-term equity and strengthens your balance sheet.
4. Predictability
Fixed monthly payments for 10 years make it easy to budget and forecast.
Removes uncertainty that comes with variable repayment products.
5. Tax Benefits
Interest is generally tax-deductible.
Assets purchased may qualify for depreciation or Section 179 deductions, lowering taxable income.
6. Growth Stability
Provides long-term financing security—you don’t need to constantly refinance or reapply like with lines of credit.
Lets you take on larger projects without strangling cash reserves.
7. Builds Business Credit
On-time repayment builds credibility with lenders, making it easier to qualify for larger financing later.
When It Makes Sense
You’re making a long-term investment (property, equipment, acquisitions, or major expansion).
You want stable, predictable payments instead of refinancing risk.
You’d rather own assets outright instead of leasing or renting.
👉 Bottom line: A 10-year term loan is about big moves with controlled cash flow impact—you lock in capital now, spread the cost over a decade, and give your business breathing room to grow.