A business term loan is a traditional loan option for business owners. A financial institution processes your application and determines the amount they are comfortable advancing to your business. Payments are made over the pre-approved term, often monthly, and interest, which may be fixed or variable, is charged on the full amount at the time of disbursement. Business term loans are usually secured with a form of collateral, such as real estate, equipment, vehicles or other assets, but they may also be unsecured.