Our Verdict
Capital One takes delight in offering business loan products to already established businesses. To get Capital One’s business loan, visit any of the bank’s branches in order to discuss your needs with any of its representatives. If you qualify, you can get up to $5,000,000 from Capital One as an SBA loan, business line of credit, merchant financing, or business term loan.
Pros
- Offers both large and small business loans.
- Allows business owners to use online tools to manage loans.
- Offers loan term extension
- Runs fair repayment terms.
- Gives a variety of loan products.
- Maintain positive customer ratings
Cons
- Hoards details about rates, fees, and terms online.
- Requires only physical application at the bank’s location.
- Limits loan products at certain places.
- Doesn’t allow business owners to conduct pre-qualification tests online before applying for any of its business loan products.
- Demands at least two years of experience in running businesses.
- Is not an SBA Preferred Lender.
Who This Product Is Best For
Capital One business loans are good for entrepreneurs who:
- Run already established ventures. If your business is under two years, you may not qualify for any of Capital One’s business loans.
- Are Capital One existing customers. You must have an active business checking account with Capital One to get its business financing products.
- Require products specific to their businesses. Need a personalized business loan? Check through Capital One loan products and select which one is best for your business.
Who This Product Isn't Right For
Capital One business loans may not be ideal for business owners who:
- Are new to business. If your enterprise is less than two years, Capital One is not an option to source business loans.
- Live and conduct business far from Capital One branches. You cannot apply online. So if you don’t live or conduct business near any Capital One branches, you may find it extremely challenging to apply for its business loan options.
- Want an online application.
What This Product Offers
- Business term loans. Apply for a lump sum with a fixed interest rate, which you repay within an agreed-upon time plus interest.
- Business SBA loans. With this loan, you get the exact amount you require, up to $5,000,000, in order to meet your business needs, securing new property, for example.
- Equipment financing. If you want to enhance your business with a new set of equipment, you can consider taking an equipment financing product.
- Real estate loans. Take out a real estate loan so you can buy a new property, clear renovation costs, or finance any existing real estate loan you’re servicing.
Product Details
Business term loans
Thanks to Capital One business term loans, you can hire new staff, carry out basic renovations, purchase inventory, beautify your storefront, etc. The downside of this product is that Capital One doesn’t supply any information—such as eligibility requirements, terms, and rates—about the loan on its website apart from the origination fees and the loan amounts.
Product | Business term loans |
Loan amounts | $10,000 to $5,000,000 |
Repayment term | Confidential |
Approximated APR | Confidential |
Fee | Origination fee: $150 for loans up to $100,000 0.25% for loans between $100,000 and $250,000 Negotiable fee above $250,000 |
Business SBA loans
Business SBA loans tend to be cheaper when you consider the rates and repayment terms because the U.S. Small Business Administration guarantees them. Capital One is not an SBA Preferred Lender, so the loan processing may not be faster as you will want it. The bank offers both SBA 7(a) loan (use it to meet any need your business requires) and SBA 504/CDC business loan (this is good if you want to make a larger purchase like buying real estate, for example).
Product | Business SBA loans |
Loan amounts | $10,000 to $5,000,000 |
Repayment term | Confidential |
Approximated APR | Confidential |
Fee | Confidential |
Business lines of credit
Business lines of credit work similarly to personal credit cards. You get a certain credit limit and borrow money whenever the need arises and repay later plus interest. Here, you pay interest only on the amount you spend. Capital One doesn’t provide any information about the rates and fees on its website.
Product | Business lines of credit |
Loan amounts | $10,000 to $5,000,000 |
Repayment term | Up to 5 years for an unsecured loan |
Approximated APR | Confidential |
Fee | Confidential |
Equipment financing
Apply for Capital One’s equipment financing for purchasing production equipment, business vehicles, computers and other office supplies, and so on. Don’t forget that equipment financing is a form of secured loan where you secure the loan by using the equipment you purchased as collateral.
Product | Business term loans |
Loan amounts | $10,000 to $5,000,000 |
Repayment term | Confidential |
Approximated APR | Confidential |
Fee | Confidential |
Real estate loans
Get up to $5,000,000 for a real estate loan with a repayment term of up to 240 months.
Product | Business term loans |
Loan amounts | $10,000 to $5,000,000 |
Repayment term | Up to 240 months |
Approximated APR | Confidential |
Fee | Confidential |
Where This Product Stands Out
- Express funding. If you don’t apply for a large sum, Capital One can release funds after a few days of application provided you qualify. However, if you require the more complicated loans—a commercial real estate loan, for example,—it may take up to three months to get the funds provided you meet the requirements.
- Different business loan products are available. Capital One offers a variety of loans from business lines of credit to commercial auto loans and real estate loans. Don’t forget, you have to visit the bank’s branch in order to find out the terms, rates, and fees.
- Rebate on real estate loans. Get a rebate of up to $7,500 on owner-occupied real estate loans of $250,000+, but terms and conditions apply. Visit the bank’s branch to find out more.
Where This Product Falls Short
- Requires physical application. To get any of Capital One’s business loan products, visit the bank and apply in person. And Capital One is only available in eight states, namely Connecticut, Delaware, Louisiana, Maryland, New Jersey, New York, Virginia and Texas and the District of Columbia
- Releases only a little information about its products. Capital One hoards critical information about its business loan products online. Visit any of the bank’s branches around you so that you can find out about the requirements, terms, fees, and rates for any business loan you need.
- Offers limited SBA loans. Capital One is not an SBA Preferred Lender and as such, it approves only a few of the SBA loan applications it receives per year.
How to Qualify for This Product
Capital One doesn’t specifically state the qualification requirements for its business loan products. Notwithstanding, you require credible personal and business credit scores, and a minimum of two years of experience in the business.
Personal credit score
Lenders use your credit score to estimate your rates and terms on credit facilities. Expect the same for Capital One. To boost your chances of qualifying for Capital One business loan products, maintain a minimum FICO rating of 680.
Time in business
Capital One requires at least two years of business experience—except if you’re applying for an SBA loan via the bank which doesn’t require any business experience.
Business annual revenue
If your business is not generating consistent revenue and profits, how possibly can you repay any loan you get? So before you apply for Capital One’s business financing, ensure your business generates reasonable annual revenue that justifies the loan amount you apply for.
How to Apply for This Product
There’s no online application method yet for any of Capital One’s business loans. Here’s how to go about it:
- Get every important financial document. Present your business plan, profit and loss statements, and tax returns to Capital One banker in order to find out which loan product is best for you.
- Apply in a branch. Discuss your business needs with a business loan banker and learn about the terms, requirements, etc.
- Provide your collateral. If you’re applying for a secured loan or commercial real estate loan, present proof of your collateral.
- Check loan terms. Before you sign the loan agreement, review the loan terms such as the interest rate, repayment schedule, and fees.
Alternatives to This Product
Wells Fargo
Want an SBA loan from a reputable national bank? If yes, consider Wells Fargo. Being an SBA Preferred Lender, you can apply for SBA lines of credit, SBA 7(a) loans, and SBA 504 loans via Wells Fargo.
OnDeck
OnDeck comes in handy when you don’t possess the required creditworthiness to get Capital One business loan products. Apply for up to a $250,000 business term loan and up to a $100,000 business line of credit from OnDeck. One cool thing is that OnDeck is an online lender—allowing you to complete the application even on your bed.
Customer Reviews
Capital One receives an A rating from Better Business Bureau (BBB) and a customer rating of 1.2 out of 5 stars, based on 1078 reviews. On Trust Pilot, Capital One receives a 1.2 rating as the majority of the customers raised concerns about not being able to resolve difficulties with the bank’s customer service.
Methodology
We reviewed Capital One business loans based on 20 data points in the categories of loan details, loan costs, eligibility and accessibility, customer experience and the application process. We rated Capital One business loans based on the weighting assigned to each category:
- Loan cost: 35%
- Loan details: 25%
- Customer experience: 20%
- Eligibility and accessibility: 10%
- Application process: 10%
Within each major category, we also considered several characteristics, including available loan amounts, repayment terms and applicable fees. We also looked at minimum credit score and time in business requirements and the geographic availability of the lender.
Finally, we evaluated Capital One business loans customer support tools, borrower perks and features that simplify the borrowing process—like online applications, prequalification options and mobile apps.
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