Business Term Loan — Popular, Inc.

The Business Term Loan from Popular, Inc. is a flexible, reliable financing solution designed to meet the evolving needs of small and medium-sized enterprises. Whether you are expanding operations, investing in new equipment, smoothing seasonal cash flow, or refinancing existing obligations, our term loan offers predictable repayment, competitive pricing, and dedicated support from experienced lenders. Built for business owners who value clarity and control, this product combines transparent terms with straightforward application and servicing.

Key Features

• Fixed or variable interest rates: Choose the rate structure that best matches your risk tolerance and planning horizon.
• Term flexibility: Loan terms range from short-term (12 months) to medium-term (up to 84 months), allowing you to align payments with project timelines.
• Amortization options: Fully amortizing schedules or interest-only periods are available to suit cash flow needs.
• Loan amounts: Financing ranges from modest amounts for micro-capital needs to larger facilities for major investments. Specific limits are determined during underwriting based on business performance and collateral.
• Collateral options: Secured and unsecured structures are offered. Collateral may include equipment, receivables, inventory, or real estate where appropriate.
• Quick decisioning: Efficient underwriting processes shorten time-to-funding so you can act when opportunities arise.

Benefits for Your Business

• Predictable budgeting: Fixed payments make cash flow management easier and reduce uncertainty.
• Growth enablement: Access capital to invest in expansion projects, hire personnel, or enter new markets.
• Cost efficiency: Competitive rates and options to refinance higher-cost debt can lower overall financing expenses.
• Operational continuity: Use funds for working capital to cover payroll, supplier payments, and seasonal fluctuations without disrupting operations.
• Professional guidance: Work with relationship managers who specialize in business lending and can tailor terms to your situation.

Who Is Eligible?

Popular, Inc. caters to a wide range of businesses including privately held companies, professional practices, family-owned enterprises, and growth-stage ventures. Eligibility is based on a combination of factors, including:

• Consistent revenue history and demonstrable cash flow.
• Reasonable credit profile for the business and principals.
• Clear use of funds aligned with business objectives.
• Appropriate documentation, such as financial statements, tax returns, and business plans for special projects.

Startups with limited operating history may qualify for smaller facilities or require stronger collateral and more conservative terms. Popular, Inc. evaluates each opportunity on its merits, emphasizing the long-term viability of the borrower’s business model.

Typical Uses of Funds

The Business Term Loan supports a broad range of business purposes:

• Asset purchases: machinery, vehicles, technology, and leasehold improvements.
• Expansion: opening new locations, scaling production, or launching new product lines.
• Working capital: stabilizing cash flow, managing cyclical demand, and covering short-term obligations.
• Refinancing: consolidating higher-cost debt to simplify payments and reduce interest expense.
• Strategic initiatives: acquisitions, franchising, and other growth transactions.

Application and Approval Process

Applying for a Business Term Loan is straightforward:

1. Pre-application consultation: Discuss objectives with a lending specialist to identify the best structure and preliminary eligibility.
2. Documentation submission: Provide required financial statements, tax returns, ownership details, and a description of the intended use of funds.
3. Underwriting: We evaluate your financial performance, cash flow projections, collateral, and industry dynamics.
4. Term proposal: Receive a tailored loan proposal outlining rate, term, amortization, covenants, and any collateral requirements.
5. Closing and funding: Sign documentation and receive funds once closing conditions are satisfied.

Popular, Inc. aims to minimize complexity and provide timely responses throughout the process. Borrowers benefit from clear disclosure of rates, fees, and any contractual obligations.

Repayment and Servicing

Repayment schedules are designed to match business cash flows. Options include monthly, quarterly, or seasonal payment structures. Early repayment may be permitted subject to terms described in the loan agreement. Popular, Inc. provides ongoing account service, offering tools and support to manage payments, request modifications if circumstances change, and plan for future financing needs.

Risk Management and Covenants

To protect both borrower and lender interests, some loans may include covenants such as maintaining minimum liquidity, meeting specific debt service coverage ratios, or restrictions on additional indebtedness. These measures are implemented to preserve financial health and reduce the likelihood of default. Business owners are encouraged to maintain accurate records and communicate promptly about material changes in operations.

Why Choose Popular, Inc.?

• Industry expertise: Lending teams with deep experience across sectors provide relevant insights and practical solutions.
• Customized financing: Flexible structures and terms tailored to the specific needs of your business.
• Transparent terms: Clear disclosure of rates, fees, and obligations to support informed decisions.
• Relationship-oriented service: Ongoing support beyond closing, with proactive guidance as your business evolves.

Common Questions

Q: Can funds be used for both capital expenditures and working capital? A: Yes. Our Business Term Loan can finance a combination of needs where the purpose is clearly described and supported by documentation.

Q: Are personal guarantees required? A: Depending on the size, structure, and credit profile, personal guarantees from owners or principals may be requested.

Q: What determines interest rates? A: Rates are based on market conditions, borrower creditworthiness, collateral, and loan structure.

Tips for a Strong Application

• Prepare accurate, up-to-date financial statements and tax returns.
• Provide a concise plan explaining how funds will be used and how repayment will be achieved.
• Demonstrate stable cash flow and reasonable profitability or a credible path to profitability.
• Be transparent about risks and how you plan to mitigate them.

The Business Term Loan at Popular, Inc. is crafted to empower business owners with dependable financing, thoughtful underwriting, and responsive service. If your company is ready to invest in growth, stabilize operations, or refinance existing obligations, this product offers a balanced combination of flexibility, structure, and support to help you achieve your goals.

Address Bank: Hato Rey, San Juan, Puerto Rico
Bank: Popular, Inc.
Headquarters: San Juan, Puerto Rico
Products: Loans & Credit
Type: Business Term Loan