Bank of America
Best for Startups
Best for Matured Businesses
Many small businesses would often require financial support to help them grow even better. When it gets to a point you want the best business loans, you will have to resolve to get help from banks. Since there are many banks around, people would often ask, what is the best bank for business loans?
All banks will often claim to make it easier for you to get bank loans, but unfortunately, not all applications qualify for a loan. We look at some of the top banks that have a high likelihood of approving small business loans. Let us dive into the guide already.
Top 6 Best Banks for Small Business Loans 2022
Bank of America
- Flexible repayment terms
- Unsecured and secured loans available
- Get financial advice too on loans
- Good flexible repayment terms
- Fast application process
- Can work best for startups
- It is the most active SBA lender
- It offers semi truck financing
- It allows for commercial real estate purchase
- Good customer support
- Offers small business credit card
- Fast loan processing times
JP Morgan Chase
- Multiple checking accounts
- The application process is simple
- Adjustable loans rates available
The 6 Best Banks for Small Business Loans 2022
Bank of America
Bank of America for a long time has always been a top destination for those who want both secured and unsecured business loans. Well, the bank continues to rank better in terms of being the option for small businesses thanks to the easy application process the bank offers for getting a loan.
There will be terms to follow when seeking these loans. Such include the business credit score, the annual revenue, and more. Even though there might be some vital requirements, you would find it easier most of the time to get your business loans with ease. Even those who want commercial real estate loans find it easy to secure one.
The bank is also known for issuing small business administration (SBA) loans faster. Even if other banks such as Wells Fargo seem to issue more SBA funding, Bank of America will still be a good choice for your business.
We cannot forget that Bank of America will also offer business lines of credit. Check out the requirements on the official bank website to see if your business qualifies.
Compared to the other banks on the list, this bank does not have many physical locations. However, the bank can still serve you well if you want business loans. Most of the time, it will be a good choice for those who want a business loan for a startup. This is unlike PNC which would require that your business be at least 3 years old.
The term loans and lines of credit are the biggest packages that the bank offers. Even if you only get secured term loans, you will be accessing a huge amount of money to grow your business even more. The faster application process will also work great to make it easier to grow your business even more.
In case you also wish for SBA loans, the bank will be another great choice. Looking at its previous numbers, we find that it comes second to Wells Fargo in terms of offering SBA loans. So, go for it to get all the help you want.
The borrowers can also get commercial real estate loans in addition to small business bank loans. So, it should be a nice bank where you get multiple loan packages.
The years in business will be a huge factor for those who want business loans from PNC. The huge requirement of the bank is that the business should have been around for at least three years to get a business loan. Of course, the credit score should also be good too.
Looking at the term loans, you can get both secured and unsecured business loans. The secured loans would always have more upper limit than the unsecured. The unsecured loans you get from the bank come with a fixed interest rate and will have a term limit of 5 years.
The bank can also be a preferred SBA lender. It also has many other business loan types for you to consider to support different types of small businesses. With a good business plan and following the application process, you can have the loan processed faster.
Wells Fargo does not need any introduction among the small business owners. This is because the bank has been offering small business loans for years now. You can now get the best loans from the bank fast so long as you meet its minimum requirements.
You can no longer get term loans from Wells Fargo. This also includes the equipment financing that most businesses loved before. However, there are still many other packages for you to consider and get a business loan.
As for business lines of credit, you have three options. One is unsecured while the other two are secured by collateral. The amount of money you can get for such might not be as huge as some competitors, but most small businesses appreciate the boost they get from the loans.
As for the SBA loans, it is hard to beat Wells Fargo. The bank for a long time has been rated as the most active SBA loan lender. We can only hope it continues to offer this package and many more.
You cannot mention Citibank and not mention the small business owners. This bank has always been at the center of issuing the best small business loans plus small business credit cards. It may have fewer loan products, but it generally makes them more accessible by those small businesses that need them.
The bank offers a huge loan range that any small business would want. The interest rate on each of the term loans is fixed. Most of the time, the interest rate would last seven years. You will still need a personal guarantee to get a bank loan from the bank.
Unfortunately, Citibank does not offer small businesses equipment financing options. Nevertheless, you can utilize the other loan packages available.
In case you ever want business lines of credit, Citibank will have you covered. There are two options to consider and all of them have a huge range. Luckily, here you can get variable interest rates and also friendly revolving terms. They still do require a personal guarantee.
It is often just called Chase Bank. This bank is good for business owners who need checking accounts and business credit cards. Once you can have such services from a bank, getting small business loans should not be hard.
If you are interested in term loans, you can get fixed and adjustable interest rates on the loans. The rates are quite friendly compared to other banks such as PNC and Bank of America. The years in business can also send a strong message that your business is strong and can qualify for more loans.
How about the business lines of credit? The bank has both commercial and business lines of credit for you to consider. These two options provide enough funding for most small businesses. They are renewable on a five-year revolving term.
The annual revenue might be important when seeking a bank loan, but you should also find out what more the bank wants. The help you get from the support team is good enough to get you a loan from a bank with ease.
Alternatives to bank business loans
There are times when you may want a small business loan, but it is hard to get from conventional banks. In such a case, consider the alternatives. Some of them include;
- Get a loan from community banks. These types of banks tend to have higher approval rates than the big names in the financial sector.
- Consider online lenders too. Most online lenders tend to have a smooth application process. They would also not need much to approve the loan. They will however have higher interest rates than the traditional banks.
- Look at microlenders for help too. If you do not qualify for a huge amount from a bank, you can also get a microloan to help keep the business running. The microloans are often less than $50,000 and will feature short repayment times. Expect to pay higher interest rates too.
Alternatives to a 0% balance transfer
You may want to consider Bank of America if you want a small business loan processed fast. Still, there is a great customer support team that would generally guide you better to understand the loan packages before choosing one that works for your business.
The processing time is also fast. So, if the loan is approved, you can be sure to start using the money to grow your business within a short time.
The banks will largely help you get the finances that you need to grow the small business into something better. If you have always had a hard time finding the best bank for your business, now you know some of the top options in the market. Most of the time, these banks will approve your loan faster if you have a good standing with them.
If you still cannot get the best loan that you want, we have also highlighted the alternatives to consider. This should help you always get funding vital to running the business.
Frequently Asked Questions (FAQs)
The most active SBA lender is Wells Fargo. The other players are Byline Bank, Key Bank, Readycap Lending, and more.
The amount a small business can qualify for will largely depend on the type of bank. You will also get that some of the loan packages would have different limits to consider. If you meet most of the requirements, expect to get more funds for your small business.
The time factor largely varies from one bank to another. Some might take two or three days, while others might take more time. Most banks will give you an expected timeframe of when to expect the loan to be processed.
The invention of online lenders has always been seen as a savior for small businesses. Since these online lenders do not need so much to offer loans, they can be an alternative for your small business loan.
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- Boot, A., Thakor, A.V. and Udell, G.F. (1987). Competition, risk neutrality and loan commitments. Journal of Banking & Finance, [online] 11(3), pp.449–471. Available at: https://www.sciencedirect.com/science/article/abs/pii/0378426687900434 [Accessed 17 Feb. 2022].