Term Loans

Ideal for purchasing, installing or modernizing business equipment and other fixed assets, term loans are cost-effective loans that can support your business growth plans. Flexible payment terms are available and you can choose either a fixed rate loan, allowing you to lock-in at a specific rate, or, you can choose a variable rate that changes with RBC Royal Bank’s Prime rate.

How can this help my business?

• Loans to purchase new or used capital assets
• Can be used to refinance an existing debt, business expansion or acquisitions
• Flexible repayments when you need it
• Fixed rate loans:
  • Start at $10,000
  • Stabilize your payment schedule by providing consistent payment amounts
  • Provide peace of mind by maintaining your loan carrying costs when interest rates rise
  • Offers an annual 10% prepayment privilege at no charge
• Variable rate loans:
  • Start at $5,000
  • Benefit from lower interest rates immediately when the prime rate changes
  • If interest rates rise, the loan can be converted to a fixed rate term loan
  • Make partial or full prepayments to your loan without penalty

What else do I need to know?

• These are secured loans for a term usually up to 7 years but not exceeding the useful life of the asset being financed
• Fixed rate loans:
  • Payments can be blended to include both principal and interest
• Variable rate loans:
  • Payment amount set to ensure repayment of the loan remains within the agreed to specified period but not to exceed the useful life of the asset being financed
  • Fluctuates with Royal Bank Prime
• Monthly payments are usually required
• Business Loan Insurance Plan is available (certain restrictions may apply)
• Available in Canadian funds