There’s a big difference between a term loan and flexible capital, and Sara broke it down clearly. A term loan is a lump sum. You get the money once, it’s split into fixed payments over a set period, and when it’s paid off, it’s done. You don’t get to reuse it.

For some people, that structure makes sense. Especially if you’re restructuring debt or paying off high interest credit cards and want predictable payments. But the tradeoff is speed and flexibility. Term loans usually take longer to get and require more documentation than a line of credit.

This isn’t good or bad. It’s just about knowing what tool you’re picking and why.

If you want help choosing the right type of capital, reach out.