Long term business loans need to be paid back with interest. Rates usually range between 6 and 8 percent of the total. Yet, they can differ based on the lending company and the timing of the loan. Additionally, a term loan will likely come with closing costs and other processing fees. These will vary based on the lending company. Check your contract for other hidden costs like early repayment fees.
If your business is barely getting by each month, this type of business loan may not be a good fit until you are in a position where you have a reliable cash flow and a little money to put aside each month. Defaulting on a term loan could be devastating for a business. You could badly damage your credit and lose your assets, both business and personal.
Additionally, if you need cash immediately, long term business loans may not the best choice, as time from application to funding can be months.