What sets the term
Time in business is the strongest single factor. Under a year generally means the short end; three years or more opens the longer terms.
Deposit consistency matters nearly as much. Steady monthly revenue supports a longer term because the funder can see the repayment being met throughout it.
Amount plays a part. Larger facilities stretch further, because the periodic payment on a large sum over six months is more than most businesses absorb.
Why the shortest term is usually the wrong choice
The total cost of a shorter term is generally lower, which is what makes it tempting. The payment is what closes businesses, and a shorter term makes it much larger.
The number that matters is what leaves your account each week against what comes in. Work that out before comparing totals, not after.
A term you can service comfortably and repay in full is worth more than a cheaper one you have to refinance under pressure, because clean repayment is what prices the next facility.
What changes at renewal
Most funders will renew once you are meaningfully through the term — commonly around half — and renewal terms are typically better than the original.
Clean repayment history is the asset here. It moves pricing more than a modest improvement in revenue does.
Renewal is also the legitimate alternative to stacking: one facility replaced by a larger one, rather than a second debit added on top.