A term loan is a type of loan that provides businesses with a lump sum of money upfront, which is repaid over a set period of time, typically in equal installments. Term loans are often used to finance major investments, such as purchasing equipment, real estate, or inventory, or to cover large, one-time expenses. The repayment period for term loans can vary from a few months to several years, depending on the amount borrowed and the lender's requirements. Interest rates for term loans can be fixed or variable and are typically higher than rates for other forms of financing, such as lines of credit. However, because term loans provide businesses with a fixed amount of capital and a predictable repayment schedule, they can be a valuable source of funding for businesses that need to make major investments or cover large expenses. Additionally, term loans can be easier to obtain than other forms of financing, such as venture capital or angel investments, which can require extensive due diligence and a significant equity stake in the business.