Established companies use business term loans to gain an edge over startups through strategic investments, expansion, and market dominance.
The modern marketplace often celebrates startups, but established businesses have advantages like experience, networks, brand recognition, and infrastructure.
However, they face challenges from agile competitors with fresh ideas and lean operations, prompting them to use term loans to fuel growth and stay competitive.
At its core, the term loan provides something startups typically lack — immediate access to significant capital at predictable repayment terms.
Term loans offer established businesses a way to maintain dominance and outcompete startups in their sector.
Author's summary: Established businesses use term loans to outcompete startups.