The term of the loan is based on the useful life of the assets being financed or collaterized. Your projected profitablity and cash flow are two key factors lenders consider when making term loans. Equipment and Real Estate Loans Loans are fully secured by the equipment being purchsaed. Lenders make long term loans secured by commercial and industrial real estate. Repayment terms range from 10 to 20 years.
Lenders also make second mortgages on real estate.
The amount of the second mortgage is based on the appraised market value and the amount of the first mortgage. Leasing Can be accomplished through a bank, leasing or finance company. Your business will be subject to the same type of review as when seeking a loan, specifically cash flow of company, value of lease object and useful life. Lease terms range from 3 to 5 years. 3-15 YR Balloon loans Balloon loans offer interest rates that are fixed for a period of years.