Funding types / Term funding
Business term funding, explained in plain English
A business term loan provides a set amount of funding that you repay over an agreed period. Goldhour Capital matches owners with funding partners and lays out each offer before you decide.
In plain English
Term funding is a business loan for a set amount, with repayment scheduled over an agreed term. The funding partner sets the amount, pricing, payment schedule, and other terms. Repayment may be due in regular installments, and the exact structure depends on the offer. Goldhour helps you compare the cash you receive, total payback, payment, term, fees, and exit terms before you sign.
How it works
From apply to paid off.
01
1. Share a few details about your business
Use Goldhour's interactive form or chat-style form to tell us what your business does, how long it has been operating, its monthly revenue, and what you need funding for. Those are typical fit details, not automatic decisions.
02
2. Speak with your named specialist
One Goldhour specialist works with you before and after funding. Goldhour is a brokerage, so we match your business with funding partners. The partner reviews the information and decides whether to make an offer and on what terms.
03
3. Review the offer details
Before you sign, Goldhour breaks down the offer in plain English and side by side with any others you are considering. Check the cash that lands in your account, each fee by name, total payback, payment amount and frequency, term, and exit terms.
04
4. Decide whether to accept
Take the time you need to ask questions and compare the full cost and payment schedule with your business cash flow. If you choose to proceed, you sign the funding partner's documents, not terms set by Goldhour.
05
5. Make payments through the agreed term
The funding partner disburses the funds and collects payments according to the signed agreement. Keep a copy of the schedule and contact your named Goldhour specialist if you need help understanding an offer or its terms. The agreement explains when repayment is complete and any applicable early payoff terms.
How it is priced
A term loan generally requires repayment of the amount funded plus the cost of financing and any disclosed fees. The partner may describe pricing using an interest rate, an annual percentage rate, or another format, so compare the actual dollar total and payment schedule rather than relying on one label. The partner sets the terms, and offers can differ. Use the Offer Decoder to translate an offer and identify the figures and conditions to compare. Goldhour does not set partner pricing.
Reading the offer
Enter the offer into the Offer Decoder to translate its language into a side-by-side view. Check the amount funded and the net cash that lands after any deductions, every fee by name, the total payback, payment amount and frequency, and the repayment term. Then read the exit terms carefully, including how early payoff is handled and whether any conditions or costs apply. Confirm unclear items with the funding partner before signing, and compare offers using the same figures and definitions.
Open the Offer DecoderBest for
- Owners who want a defined amount of funding for a planned business expense or investment.
- Businesses that prefer scheduled payments over an agreed term and can plan for those payments in their cash flow.
- Owners who want to compare the full payback and contract terms before choosing an offer.
- Owners looking for funding up to $2M, subject to partner review and the terms available.
Not ideal when
- The business needs flexible access to funds that can be drawn and repaid repeatedly, which may fit a revolving product better.
- Cash flow is too uneven to comfortably plan around the proposed payment schedule.
- The use of funds or timing is uncertain, and taking on a fixed repayment obligation could add pressure.
- The offer's total payback, fees, payment schedule, or exit terms are unclear or have not been confirmed in writing.
What it does well
- A defined funding amount can make it easier to plan for a specific business need.
- A set repayment schedule and term can make the commitment easier to map against expected cash flow.
- Offers can be compared using net cash received, total payback, payments, fees, and exit terms.
- Goldhour provides a plain-English breakdown before you sign and a named specialist before and after funding.
Trade-offs to weigh
- Scheduled payments are still due when sales slow, so plan for them across different business conditions.
- The full cost can include financing charges and fees, so the amount deposited may be less than the amount used to calculate repayment.
- A longer repayment term can change the payment size and the overall cost. Review both, rather than focusing on one figure.
- The funding partner sets approval decisions and contract terms. Goldhour does not control them.
- Early payoff may not reduce the amount owed in the way you expect. The contract's exit terms determine how it works.
Compared to the others
How it stacks up.
vs. Business line of credit
A term loan provides a set amount with repayment over an agreed term. A business line of credit typically offers access to a limit that can be drawn as needed, subject to its terms. Compare the payment structure, cost, and flexibility for your use.
vs. Revenue-based funding
Term loans have loan terms and a scheduled repayment structure. Revenue-based funding generally links remittances to business revenue under its agreement. The contracts, cost descriptions, and payment patterns differ, so compare the actual obligations rather than the product names.
vs. Merchant cash advance
A merchant cash advance is commonly structured around a purchase of future receivables, while a term loan is a loan with a defined repayment obligation. The legal structure and payment mechanics can differ by contract. Review the agreement and have unclear terms explained before signing.
vs. Business credit card
A business credit card is generally a revolving credit product used for purchases, while term funding is a set amount repaid on a schedule. Cards may have ongoing access to credit subject to the account terms. Compare total cost, payment obligations, and how each fits the expense.
Ask before you sign
Six questions worth asking.
- How much cash will land in my account after all deductions?
- What is the total amount I will repay, and how is that figure calculated?
- What is every fee, by name, and when is it charged or deducted?
- How much is each payment, how often is it due, and when does repayment begin?
- What is the full term, and what happens if a payment is late or missed?
- What are the early payoff terms, and how is any payoff amount calculated?
- Are any payments, collateral, guarantees, or other obligations described in the agreement?
- Who do I contact at the funding partner with servicing questions after funding?
Have these ready
- Basic business details, including what the business does and how long it has been operating.
- A clear description of the funding need and how the funds would be used.
- A general picture of monthly business revenue and cash flow available for scheduled payments.
- Any funding offer you already have, so the Offer Decoder can help translate its terms.
- Questions about fees, payment timing, total payback, and exit terms.
Questions
What is a business term loan?
It is a loan for a set amount that a business repays over an agreed period. The funding partner sets the offer terms, including the payment schedule and financing cost.
How does term funding work?
A funding partner reviews the business and may offer a set amount with a repayment schedule. If you accept and sign the partner's agreement, the partner disburses the funds and collects payments under that agreement.
How much can I get?
Funding may be available up to $2M, subject to partner review, business circumstances, and the offer terms. The amount is not guaranteed. Goldhour can help you understand an offer if a partner makes one.
Who are owners you usually work with?
Owners we usually work with have been in business for 1+ year, have 550+ credit, and bring in $50K+ monthly revenue. These are typical fit details, not automatic acceptance or rejection rules. A funding partner makes its own decision.
What affects the cost of a term loan?
The funding partner sets the pricing and fees. The offer may show a rate or another pricing format, plus any fees and the payment schedule. Compare the net cash received with total payback and review every disclosed cost.
Can I pay the loan off early?
That depends on the agreement. Read the early payoff or exit terms to learn whether early payment is allowed, how the payoff amount is calculated, and whether any conditions or costs apply.
Does Goldhour set the loan terms?
No. Goldhour Capital is a brokerage that matches business owners with funding partners. The partner decides whether to offer funding and sets the terms. Goldhour helps translate and compare the offers before you sign.
What happens to my information when I apply?
Goldhour says it uses one application, one company contacts you, and your information is not sold or shared. Ask your specialist how information is handled for the application and partner review, and review any relevant notices before submitting.
Make the most of the light.
One short application. One company calls you. Every offer laid out in plain English before you sign.