A long-term business loan is a type of loan that is paid back over a longer period of time. The lender loans the borrower a set amount of money for business expenses, such as purchasing a commercial vehicle or real estate, buying equipment, or hiring new employees.

With the help of a long-term loan, the business does not have to pay a large sum out-of-pocket. Instead, a lender will provide the needed funding, which the business will pay back in fixed amounts over several years, along with interest and fees.