Adjustable-Rate Term Loans

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Flexible Rates That Adjust Daily

If your business financing needs place a burden on your cash flow, you may want to consider an Adjustable-Rate Term Loan whose interest rate adjusts periodically as rates shift. This may let you take advantage of lower near-term interest rates.

  • Take advantage of lower near-term interest rates
  • Interest rates adjust periodically as rates shift
  • Terms from 3 to 10 years, with amortizations up to 20 years

Adjustable-Rate Term Loan Features

Loan range

Loans start from $1,000,000.

Terms

Three to 10 years.

Collateral

A term loan is typically secured by collateral, such as a first lien on equipment or securities-based financing.

Interest rate

Floating, with periodic adjustments based on rate shifts.

Fee

Both fee and no-fee term loans are available.

Frequently Asked Questions About Adjustable-Rate Term Loans

What is a term loan?

A term loan is financing for a specific number of years, known as the loan’s term. This type of loan can be either a fixed-rate, meaning the interest rate remains stable over the life of the loan, or adjustable-rate, meaning the interest rate fluctuates as rates shift.

How much can be borrowed with a term loan?

Loan amounts start at $1,000,000.

How can a term loan be used?

Term loans are generally used by companies that require funds for extended periods to:

  • Finance real estate
  • Purchase equipment
  • Finance acquisitions

What is the benefit of a fixed-rate term loan?

Because its interest rate remains consistent over the life of the loan, a fixed-rate term loan offers a fixed payment. This may make it easier to budget.

What is the benefit of an adjustable-rate term loan?

Businesses that want to take advantage of lower short-term interest rates might want to consider an adjustable-rate term loan, whose interest rate shifts periodically as rates shift.

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    For more information call 1.866.4ML-BUSINESS (465-2874) or e-mail us at AskMLBiz@ml.com.

    Merrill Lynch, Pierce, Fenner & Smith Incorporated is a registered broker-dealer, not a bank, and the WCMA account is not a bank account. Banking services are provided by licensed banks or by third parties through arrangements with licensed banks. Unless otherwise indicated, investment products are not FDIC-insured, not guaranteed by a bank and may lose value.

    Working Capital Management Account, Loan Management Account, WCMA and LMA are registered service marks of Merrill Lynch & Co., Inc.

    The WCMA® account is a product of Merrill Lynch, Pierce, Fenner & Smith Incorporated.

    The WCMA® Commercial Line of Credit, which is linked to the WCMA® account, is offered through Merrill Lynch Commercial Finance Corp.

    Term loan financing and the WCMA Reducing Revolver Loan are offered through Merrill Lynch Commercial Finance Corp.


    Financing, including the WCMA Reducing Revolver loan, is through Merrill Lynch Commercial Finance Corp., 222 North LaSalle Street, 17th Floor, Chicago IL 60601-California Loans made pursuant to a Department of Corporations California Finance Lenders license.  Programs, options and property types are not available in all states and are subject to change.  Certain conditions, restriction and costs may apply, Not all features are available with all programs.  All loans are subject to credit review and approval. 

    WCMA Reducing Revolver is a service mark of Merrill Lynch & Co., Inc.

    Should the value of securities pledged as collateral decrease below a certain level (as specified within the loan document), the deposit of additional assets and/or liquidation of assets may be required. Securities-based loans cannot be used for investment purposes. A complete description of the loan terms can be found in the Loan Agreements. When considering Merrill Lynch financing, take into account your individual requirements, portfolio makeup and risk tolerance, as well as capital gains taxes, portfolio performance expectations and investment time horizon.