Working Capital 350,000 – 5,000,000

When it comes to taking your business to the next step, it’s often necessary to take out a loan to turn your dreams into a reality. Cornerstone Capital is your trusted lending service, offering key insights for your needs and circumstances as well as the capital to achieve your goals. We take a holistic approach to ensure your goals are met–all while moving you in the right direction, financially. However, not just anyone is qualified for the loan the desire. Let’s look at eligibility for loans for business working capital, $350,000 – $5,000,000. 

How to Qualify for a Working Capital Loan of $350,000 to $5 Million

Qualifying for a loan between $350,000 and $5 million requires meeting key criteria. Ensure your credit score exceeds 680, demonstrating a strong credit history. Collateral is crucial; be prepared to offer valuable assets to secure the loan. Providing a detailed list outlining the intended use of funds adds transparency and reinforces your financial responsibility. Additional criteria may apply, so consult with our experts to navigate the process and secure the financing you need. Additional terms will likely include:


  • No outstanding tax liens
  • No bankruptcies, repossessions or foreclosures in the last four years
  • Explanations for recent settlements or charge offs


If you’re ready to get your business moving in the right direction, get your questions about eligibility answered today with the experienced team at Cornerstone Capital–and allow us to help you achieve your vision.

10-Year Loan Term: Pros and Cons

When considering a 10-year loan term, it’s essential to weigh the pros and cons to make an informed decision that aligns with your financial goals and capabilities. Whether you’re eyeing an SBA loan or another type of financing, understanding the advantages and disadvantages of committing to a decade-long repayment plan is crucial.


1. Potential for Faster Debt Repayment:

A 10-year term allows for quicker debt repayment compared to even longer-term loans. If you have the financial capacity to handle higher monthly payments, this option enables you to become debt-free sooner, providing financial freedom and flexibility in the long run.

2. Potential to Build Equity Faster:

In the case of mortgages, a 10-year term accelerates the equity-building process. Homeowners can accumulate home equity at a faster rate, giving them increased financial leverage and potential opportunities for future investments.

3. Overall Cost Savings:

While monthly payments may be higher, the total cost of the loan over its duration is likely to be lower than that of a more extended loan term. This can translate to significant savings in interest payments, allowing borrowers to allocate funds to other financial goals.

4. Lower Risk of Interest Rate Fluctuations:

With a shorter loan term, borrowers are less exposed to interest rate fluctuations. Opting for a 10-year loan can provide a sense of stability and predictability in monthly payments, protecting borrowers from potential economic uncertainties.


1. Higher Monthly Payments:

The most apparent drawback of a 10-year loan term is the higher monthly payments. While this accelerates debt repayment, it may strain the monthly budget for some borrowers, especially those with fluctuating incomes.

2. Reduced Cash Flow:

Committing to higher monthly payments can lead to reduced cash flow available for other essential expenses or investments. Borrowers should carefully assess their financial situation to ensure they can comfortably manage the increased monthly obligations.

3. Limited Flexibility:

A shorter loan term offers less flexibility in terms of monthly budgeting. Unexpected expenses or changes in financial circumstances may pose challenges, making it crucial for borrowers to have a robust financial plan in place.

4. Stricter Eligibility Criteria:

Lenders may impose stricter eligibility criteria for shorter-term loans, including higher credit score requirements. Borrowers need to meet these criteria to qualify for the loan, potentially limiting access for some individuals.


Choosing a 10-year loan term involves a careful consideration of both its advantages and disadvantages. While it offers the benefits of lower overall costs, faster debt repayment, and reduced interest rate risks, borrowers must be prepared for higher monthly payments and limited financial flexibility. Assessing your financial situation and long-term goals is crucial in determining whether a 10-year loan term aligns with your overall financial strategy.


If you have any questions about which type of loan terms will work best for your business, our financial experts are in your corner. Trust us to guide you towards financial success in navigating your goals!


Still have questions about long-term loans, terms, and eligibility? Cornerstone Capital has got you covered. Here are some Frequently Asked Questions regarding long-term loans. 

What Is the Difference Between a Short-Term Loan and a Long-Term Loan?

Navigating the financial landscape involves understanding the fundamental disparities between short-term and long-term loans. Short-term loans typically span a shorter repayment period, often a year or less, with the advantage of quicker debt resolution. These loans are ideal for immediate financial needs, offering rapid access to funds. On the other hand, long-term loans extend over several years, providing borrowers with a more extended repayment timeline. This flexibility comes at the cost of higher overall interest payments. Long-term loans are commonly sought for substantial investments like real estate or business expansion. 


The key difference lies in the repayment duration and the financial objectives they serve. Short-term loans offer agility in managing immediate expenses, while long-term loans provide the breathing room necessary for significant ventures. Understanding these distinctions empowers borrowers to align their financial choices with specific goals, whether it’s addressing urgent cash flow needs or embarking on substantial, long-term investments. Whatever your financial journey entails, comprehending the nuances between short and long-term loans positions you to make informed decisions that suit your unique circumstances.

Do Long-Term Loans Have Higher Interest Rates?

Yes, long-term loans typically come with higher interest rates compared to their short-term counterparts. The extended repayment period associated with long-term loans exposes lenders to more significant risks, prompting them to charge higher interest to compensate. While long-term loans offer lower monthly payments, borrowers end up paying more in interest over the life of the loan. It’s crucial for individuals considering long-term financing to weigh the benefits of lower monthly payments against the overall cost incurred through interest payments over the extended duration of the loan.

Why Do Longer Term Loans Cost More in Interest?

Longer-term loans cost more in interest due to the extended repayment period. Lenders charge higher interest rates to mitigate the increased risk associated with prolonged lending commitments. The extended timeline exposes lenders to economic fluctuations, impacting the present value of money. Consequently, they impose higher interest to compensate for the time value of the funds they provide. While longer terms offer lower monthly payments, the cumulative interest paid over the extended duration results in a higher overall cost for borrowers. Understanding this dynamic is crucial for individuals making informed decisions about their financing options.

Are Loans Long-Term Liabilities?

Yes, loans are considered long-term liabilities. When a company or individual borrows money with a repayment period extending beyond one year, it classifies as a long-term liability on the balance sheet. This categorization reflects the extended timeframe within which the borrowed funds are expected to be repaid. Long-term liabilities include various types of loans, such as mortgages, business loans, or bonds with maturities exceeding one year. Unlike short-term liabilities, which are settled within a year, long-term liabilities represent ongoing financial commitments that have a more extended impact on a borrower’s financial position.


Managing long-term liabilities involves careful planning to ensure sustainable repayment over the agreed-upon period and understanding the associated interest costs. While loans can facilitate financial growth and investment, recognizing them as long-term liabilities emphasizes the need for prudent financial management to uphold fiscal health and meet obligations over the extended term.

Long-Term Loan vs. Finance Lease

In the realm of financial decision-making, choosing between a long-term loan and a finance lease requires a comprehensive understanding of the nuances associated with each option. These two financial instruments serve distinct purposes and cater to varying needs, influencing the ownership structure, payment terms, and overall financial implications.

Long-Term Loan: A Traditional Financing Avenue

A long-term loan represents a conventional approach to securing funds for significant investments such as real estate, business expansion, or other capital-intensive ventures. In this arrangement, a lender provides a lump sum amount to the borrower, who then commits to repaying the borrowed funds over an extended period. This repayment period typically spans several years, and interest accrues on the outstanding balance.


Ownership and Benefits: One of the key features of a long-term loan is that, upon the completion of the repayment term, the borrower gains full ownership of the asset or property. This transfer of ownership is a pivotal aspect, making long-term loans suitable for those seeking lasting, tangible investments. Additionally, borrowers may benefit from potential tax advantages and the ability to build equity over time.


Flexibility and Usage: Long-term loans offer flexibility in terms of the usage of funds. Whether it’s launching a new business venture, acquiring real estate, or expanding an existing enterprise, the borrower has the autonomy to allocate the funds according to their specific needs. The predictable and structured repayment schedule aids in effective financial planning.

Finance Lease: Unlocking Asset Access without Ownership

A finance lease, on the other hand, represents a form of long-term rental agreement commonly employed for obtaining assets like machinery, equipment, or vehicles. This arrangement allows the lessee (the individual or business using the asset) to enjoy the benefits of the asset without necessarily taking ownership.


Usage without Ownership: Unlike a long-term loan, a finance lease provides the lessee with the right to use the asset over an agreed-upon period, paying periodic lease payments. At the end of the lease term, there may be options to purchase the asset, continue leasing, or return the asset to the lessor. This flexibility is particularly advantageous for businesses that require specific equipment for a defined period without the long-term commitment of ownership.


Maintenance and Upkeep: In many finance lease agreements, the lessor (the owner of the asset) is responsible for the maintenance and upkeep of the asset. This can be beneficial for lessees, relieving them of the burden of ongoing maintenance costs and ensuring that the asset remains in optimal condition throughout the lease term.

Choosing Between Long-Term Loan and Finance Lease:

The decision between a long-term loan and a finance lease hinges on various factors, including the nature of the investment, ownership preferences, and the financial goals of the borrower.


  1. Consider Ownership Goals: If the goal is to acquire ownership of a property or asset over time, a long-term loan is typically the preferred choice. This is especially true for investments with enduring value, such as real estate, where ownership signifies long-term stability and potential appreciation.
  2. Short-Term Asset Needs: For businesses or individuals with short-term asset needs, a finance lease offers a practical solution. It allows access to essential equipment without the long-term commitment of ownership, making it suitable for projects or operations with a defined duration.
  3. Financial Flexibility: Finance leases can provide financial flexibility, particularly in industries where technology or equipment evolves rapidly. Leasing allows businesses to upgrade to newer models or technologies at the end of the lease term, staying competitive without the burden of owning outdated assets.
  4. Tax Implications: Both long-term loans and finance leases have distinct tax implications. Long-term loans may offer potential tax advantages, such as interest deductions, while finance leases may provide lease payment deductions. Consulting with financial advisors can help in understanding the tax implications specific to each option.

Business Working Capital Loans, $350,000 – $5 Million with Cornerstone Capital

Taking out a loan doesn’t have to be a quagmire of red tape and anxiety. The trusted advisors at Cornerstone Capital look holistically at each business’ needs and help guide executives to their highest level of success through responsible lending. Stop putting your goals on the back burner. Make this year the year you move forward towards your highest aspirations–your dreams won’t accomplish themselves. Reach out to us today for a consultation! Set the wheels in motion by calling us at 954-434-1296!

Working Capital 350,000 - 5,000,000

Credit Score 680 or Higher

Interest Rate – Prime + 2.75%

Collateral Required, if Available

Detailed List for Use of Funds

No Outstanding Tax Liens

No Bankruptcies, Repossessions or Foreclosures in the Last 4 Years

Explanations for Recent Charge Offs or Settlements

Are You Ready To Discuss The SBA Working Capital Loans For Your Business? Contact Us!

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