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Small Business > Borrowing and Credit > Loans and Lines of Credit > Term Loans

Term Loans

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 conditions may apply)
  • Available in Canadian funds