Term Loans
Fixed capital on a fixed schedule, for needs that outlast a single contract.
Let's size your term loan.
Two questions to start. No obligation, no credit pull.
How it works
Not every capital need maps to a contract. Acquiring another firm, opening a second location, buying out a partner, consolidating higher-cost debt, or investing in the infrastructure required to compete for larger awards are all commitments that outlast any single period of performance. A term loan funds those: a fixed amount, disbursed up front, repaid on a defined schedule.
The tradeoff against a revolving facility is predictability versus flexibility. A term loan gives you a known payment and a known payoff date, which is what you want when the asset being financed has a long life. It is the wrong instrument for a gap that closes in sixty days, because you keep paying on capital you no longer need.
For government contractors specifically, term debt is most often the right answer when the investment increases capacity to win work rather than performing a contract already won: the systems, certifications, facilities, or acquisitions that change what you are eligible to bid on.
How the facility is structured.
A known payment and a known payoff date, rather than a fluctuating balance.
Repayment matched to the useful life of what you are financing, not a billing cycle.
Fits buyouts, expansion, consolidation, and infrastructure investment.
Sits alongside a contract line rather than competing with it.
Term Loans questions, answered.
When does a term loan make more sense than a line of credit?
When the need is a one-time investment with a long life, such as an acquisition, a facility, or a buyout. A line of credit is the better fit for a recurring gap between performing work and getting paid, because you only pay for what you draw.
Can I hold a term loan and a contract line of credit at the same time?
Frequently, yes, and the two serve different purposes. The term loan funds the balance sheet; the contract facility funds performance. What matters is that the combined obligations are sized to what the business can service.
Is a term loan underwritten on my contracts?
Less directly than a contract facility. Because repayment runs beyond any single period of performance, term debt looks harder at overall financial condition, cash flow, and the durability of your contract base rather than one award.
Ready to fund your contract?
No obligation, talk to a govcon financing specialist, not a call center. We'll structure capital around your award.