When a Sevierville owner calls, Boldwick routes the request to funding partners, and the partner that reviews it names any rate and term.
Term loans fit one-time purchases with a known price. This page works through an ice cream shop's batch freezer on two terms, a laser tag arena's vests, a bike shop's repair stands and a real estate office's payment schedule, all with invented figures; building work stays outside this site.
At a glance
- Made for
One-time purchases: machines, gear, office equipment
- Payment
The same amount each month until the term ends
- Outside this site
Real estate and building construction loans
A batch freezer and dipping cabinet for a Sevierville, TN ice cream shop: 36 or 48 months
An ice cream shop in Sevierville, TN that makes its own ice cream replaces a worn batch freezer and adds a second dipping cabinet. The price is fixed on the dealer's quote and the machines work for years, which is the shape a term loan fits.
| Term | Monthly payment | Total of payments | Interest |
|---|---|---|---|
| 36 months | $640.50 | $23,058.00 | $3,508.00 |
| 48 months | $505.75 | $24,276.00 | $4,726.00 |
On the longer schedule the ice cream shop sends $134.75 less each month, and the extra year of payments costs it $1,218.00 in added interest. Either way the payment stays level, so the shop can set it against a month of sales from the first payment to the last.
The water line, drain and any new circuit the batch freezer needs are property work outside this site; the request covers the machines and their delivery.
A commercial term loan, defined through new vest sets and a scoring system at a Sevier County, TN laser tag arena
A commercial term loan is a business loan with a fixed principal, a fixed number of monthly payments and an interest rate set in the offer. A laser tag arena in Sevier County, TN replacing its vest sets and scoring computer shows it at a mid-size amount.
Illustration only, invented figures: 24 vest-and-phaser sets cost $26,400 and the scoring system with its software license $5,900, $32,300 in all. Borrowed at 9.65% for five years, the gear costs the arena $680.73 a month and $40,843.80 over 60 payments, $8,543.80 of which is interest.
The vests, chargers and scoring computer are movable equipment. Arena walls, obstacles fixed to the floor and lighting wired into the building are property work and stay outside this site.
Term loan vs line of credit: repair stands and parts reorders at a Sevier County, TN bike shop
A bike shop in Sevier County, TN has two needs at once: repair stands and wheel tools it will use for years, and parts reorders that repeat every few weeks. The tools suit a term loan, and the reorders suit a line of credit.
Illustration only, invented figures: four repair stands, a truing stand and a wheel-building tool set cost $12,850. On a three-year term loan at 10.55%, the bike shop would owe $417.96 monthly, or $15,046.56 by the last of 36 payments. Putting tube, tire and chain reorders on the same loan would mean borrowing money that sits idle between orders.
- Term loan: one amount, a fixed end date, the same payment each month.
- Line of credit: draw, pay down, draw again; interest only on the balance drawn.
- Both can sit side by side when a partner offers them; each is reviewed on its own.
The line of credit page has a hardware store reorder worked through.
How a business term loan works, payment by payment, for a Sevierville, TN real estate office
Each payment on a term loan pays the interest that built up over the month first, and the rest reduces the balance. A real estate office in Sevierville, TN buying a phone system, two laptops and a sign package shows the split.
| Payment | Amount | Interest | Principal | Balance after |
|---|---|---|---|---|
| Payment 1 | $715.35 | $256.45 | $458.90 | $27,141.10 |
| Payment 2 | $715.35 | $252.19 | $463.16 | $26,677.94 |
| Payment 3 | $715.35 | $247.88 | $467.47 | $26,210.47 |
The payment stays at $715.35 for all 48 months; 48 payments total $34,336.80, with $6,736.80 of interest. As the balance falls, each payment carries a little less interest and a little more principal.
Two articles carry longer purchases as well: vending machines a motel owns outright and a food truck or trailer for an operating restaurant.
By Boldwick Funding Group ยท Updated
