Both fund a business — but one is a lump sum with fixed payments, the other is revolving capital you draw as needed. Here is how to choose.
Choose a term loan when you have a defined, one-time use — buying out a partner, a build-out, a large equipment purchase — and you want a fixed payment you can plan around.
Choose a line of credit when the need is variable: covering payroll in a slow month, buying seasonal inventory, or bridging the gap while customers pay. You only pay for what you use, and the capital is there again once you repay.
Not sure? One application puts both in front of you — EQ Funding routes your file to 50 lenders and you compare term and revolving offers side by side in about 24 hours.
For a large, one-time cost you hold for years, a term loan is usually cheaper. For short-term or variable needs, a line of credit is cheaper because you only pay interest on what you draw.
Yes, and many businesses do — a term loan for a major investment and a line of credit for working capital. One application lets you compare and combine offers.
Yes. One EQ Funding application routes your file to 50 lenders covering both, so you see term loan and line of credit offers side by side and choose the better deal — instead of applying separately and guessing which is more competitive.
No. Comparing offers uses a soft pull that has no effect on your credit score. A hard inquiry only happens once you accept a specific lender — so there is no downside to seeing both before you decide.
Nothing to you. EQ Funding is paid by the lender when your deal closes — never by the borrower. Because lenders compete, the winning offer is often better than what a single source would have made.
Most applicants see first offers within about 24 hours and can fund in as little as 48 hours after accepting. SBA-backed options take longer but carry the lowest rates.
Six questions. Two minutes. No effect on your credit score. Real offers from 50 lenders within 24 hours.