Choosing the right loan duration depends on several factors:
Business Plan: Review your business plan to estimate how quickly your business will generate revenue. This can help you decide between short-term and long-term loans. Revenue Predictability: If your business has stable and predictable revenue, a shorter loan duration might be feasible. For variable revenue, longer durations can offer a safety net. Interest Rates: Compare interest rates for different durations. Sometimes, long-term loans can have higher rates, making them more expensive in the long run. Repayment Capacity: Assess your ability to make regular loan payments. Overestimating your capacity can lead to financial strain, while underestimating it can result in missed opportunities.