Our Verdict
In the world of personal loans, CIT, a division of First Citizens Bank, with a network of 600 branches in 22 states, stands out as a competitive option with its attractive interest rates and lack of origination fees. If you have excellent credit, this could be a substantial choice for you. Bear in mind that your credit score will determine what you qualify for and may affect your interest rate.
Pros
- The hassle-free online application process
- A diverse selection of loan amounts tailored to meet specific requirements
- Funds are received within one business day
- CIT Bank has a competitive Annual Percentage Yield (APYs) and no monthly fees
- It offers advisory services
- It has Federal Deposit Insurance Corporation (FDIC) insurance
Cons
- It doesn’t publicly state which industries are ineligible for any of its business loans
- The website lacks enough information on loan requirements, eligibility, and rates
- The complex application process, with a chunky website to navigate and limits to access
- It is tough to differentiate banking and lending services
- It has no physical offices or Automated Teller Machines (ATMs)
- The minimum credit rating requirement could be lofty.
Who This Product Is Best For
Consider CIT Bank Business Loans if you:
- Urgently need a loan
- Looking for higher loan amounts
- Searching for competitive rates
- Need multiple small business lending products
Who This Product Isn't Right For
Appraise other options if you:
- Have a business in an ineligible industry (which you will find out after trying to apply)
- Need a lot of information on loan requirements online
- Have trust issues due to the lack of physical branches
What This Product Offers
CIT Bank has got you covered with several types of loans! This will guide you through them.
- Equipment Financing:
If you need heavy equipment, machinery, or vehicles for your business, CIT offers equipment loans up to $500,000 with repayment terms ranging from 6 to 72 months. The annual percentage rate (APR) starts at 5.49%, but it may vary depending on your credit score, borrowing history, and the equipment you’re buying. Equipment financing usually comes with fixed monthly payments, but seasonal payments are also available for you.
- Working Capital Loan:
For short-term operating expenses like payroll or inventory, CIT offers working capital loans up to $150,000. Repayment terms are shorter, from 6 to 15 months. CIT does not disclose its interest rate ranges and no online publication of fees. It deducts repayments automatically from your business checking account, which makes things easier for you.
- SBA 504/7 (a) Loans:
As an SBA Preferred Lender, CIT offers SBA 504 loans, with support from the U.S. Small Business Administration. These loans are primarily for financing commercial real estate or equipment purchases. Loan amounts range from $250,000 to $5,000,000, with repayment terms of up to 300 months and a total interest of approximately 3.00% of the loan amount. CIT does not disclose specific fees, so it’s best to ask about possible fees before applying. Remember, SBA loans carry a definite monthly payment for the loan term, and loans with a term of 15 years or longer carry an early repayment penalty if you pay them off in the first five years. For SBA 7(a) loans, you’ll be pleased to know that loans ranging from $250,000 to 13.75 million dollars are available for this purpose. The loan term is 25 years, which is ideal for owner-occupied commercial real estate. Whether you’re looking to refinance an existing commercial property or purchase a new one, these loans can provide the funding you need to achieve your goals.
Product Details
Product | Features |
Equipment Financing | |
Amount | Up to $500,000 |
Application | Application only (in typical cases) |
Term length | 6 – 72 months |
Rates | As low as 5.49% for qualified customers |
Funding speed | As fast as 1 day |
Uses | Purchase inventory, equipment/technology, temporary cash flow management, marketing, working capital supplementation |
Financing | $1 Buyout, Fair Market Value, Net Terms |
Loan repayment | Monthly or Seasonal payments |
Product | Features |
Working capital loans | |
Amount | Up to $150,000 |
Application | Not disclosed |
Repayment | Automatic deductions daily or weekly from your checking account. |
Uses | Purchase inventory, equipment/technology, temporary cash flow management, marketing, working capital supplementation, etc |
Financing | Rates for working capital loans vary based on requested loan terms and credit review. |
Product | Features |
SBA 7(a) Term Loan | |
Loan Amount | $250,000 to $5,000,000 |
Down Payment | Up to 100% financing available |
Interest Rate | Rigid or variable rate options |
Term | Longer terms with repayment up to 25 years for real estate and for all other uses, up to 10 years full amortization with no balloon payments; initial flexible payment schedules to assist during business ramp up or transition period |
Prepayment Penalty | No prepayment penalties for loans with less than 15-year terms |
Uses | Refinancing or purchasing a commercial property |
SBA 504 Term Loan | |
Loan Amount | Up to $5 million |
Down Payment* | As low as 10% |
Interest Rate | Rigid rate options available |
Term | Up to 25 years for commercial real estate and up to 15 years for equipment |
Prepayment Penalty | Prepayment penalties apply |
SBA Express Term Loan | |
Loan Amount | $50,000 to $350,000 |
Down Payment | Up to 100% financing available |
Interest Rate | Competitive variable rate options |
Term | Up to 10 years full amortization with no balloon payments—initial flexible payment schedules |
Prepayment Penalty | None |
Where This Product Stands Out
– Get loans of up to $5, 000,000 from this lender.
– The loan terms range from six months to seven years, choose a repayment plan that works for you.
– Along with other lending products, this lender has an equipment financing platform that’s worth checking out. They offer next-day funding in some cases, which is a big plus.
– This commercial lender’s rates are competitive with traditional banks and credit unions, and they have plenty of resources and industry insight as a division of a top 50 US bank with over a century of experience.
– If you own a small business or a middle-market enterprise, this lender can provide financing for you.
-When giving loans under equipment financing, you’re eligible to apply with both new and old equipment.
Where This Product Falls Short
Drawbacks of working with the financial company include:
– It doesn’t provide any information online on how to qualify for its products making it impossible to know if you’ll qualify before applying.
– Contacting the company is necessary for all loans except equipment financing under $500k.
– The application process is more evolved than most alternative lenders.
– Rates vary depending on the lending product, but the company doesn’t provide information on costs.
– Understanding which lending products are ideal for your small business can pose a challenge.
How to Qualify for This Product
Now, when it comes to applying for a loan, CIT Bank is pretty vague about what documents you’ll need. Find out if your small business meets CIT Bank’s eligibility requirements before applying for a loan. Keep in mind that CIT requires a business to have been operating for at least two years. Additionally, the lender only mentions that applicants must submit six months of business bank statements. To ensure you have all the necessary documents, it’s recommended that you contact CIT Bank directly for more information on its eligibility requirements and application process.
Other documents to also carry include: Business Plan, Annual Revenue, and Collateral proof.
How to Apply for This Product
To apply, CIT Bank got you covered! Applying is a breeze and should only take about a few minutes on their website. Just be ready to provide some documents, like business and personal tax returns, bank statements, financial statements, and legal documents. Once you get approval, CIT Bank will send your contracts online, where you can sign them electronically.
However, when it comes to getting an SBA loan, there are some additional criteria you’ll need to meet beyond the standard requirements. For example, if you own 20% or more of your business, you’ll be required to provide an unconditional guarantee. And if you have a controlling interest in the business, you’ll need to submit a guarantee as well.
If your startup or special-purpose businesses have additional equity requirements. For these types of businesses, you’ll need to have 5% equity, in addition to the standard 5% equity requirement. This brings the total equity requirement for these types of businesses to 10%.
Alternative to This Product
CIT’s rates may vary depending on the type of lending product, but they don’t provide comprehensive information on costs. This makes it difficult to compare their rates with other lenders. Nonetheless, if you’re looking for alternatives to this product, there are a few options to consider.
For example, Citibank offers small-business credit cards and business loans, although their selection is not as vast as other lenders. They offer fixed interest rates for their term loans, which range from $5,000 to $5 million and can be used for equipment financing. Citibank also has two business lines of credit that come with variable interest rates and revolving terms but require a personal guarantee.
On the other hand, PNC‘s business loans are better suited for standard businesses, as they require a minimum of three years in business to qualify. PNC offers unsecured term loans of up to $100,000 and secured loans of up to $3 million, with rigid or variable interest rates and terms of up to seven years. They also offer lines of credit with the same limits and terms but with an annual fee of $175 for the unsecured line and a 0.25% fee for the secured line. PNC is also a better SBA lender, although they issue fewer SBA loans than some other banks.
If you’re open to online lenders, they can offer faster funding and higher approval rates than traditional banks, and some even specialize in small-business loans. Live Oak Bank is currently the most active SBA 7(a) lender by loan volume, but keep in mind that online lenders may charge higher costs than traditional banks.
Customer Reviews
To get first-hand experience of the customer service of CIT Bank, get in touch with CIT Bank regarding their small business services, you can either give them a call at 866-777-0117 or shoot them an email at [email protected].
As for their ratings, CIT Bank currently holds a 4 point out of 5 in the 2023 review of the bank by Business Insider. However, on Trustpilot, things aren’t looking too good for them as they have received a poor rating of 2.1 stars out of 5 based on at least 300 customer reviews. It also did obtain a ranking of number 1 on the American Banker’s Best Customer Experience Institutions for 2022. In Investopedia, CIT Bank is the overall best for ‘Large Loans’ in its Best Equipment Financing Companies’ 2022 rating.”
Methodology
We reviewed CIT Bank business loans based on 35 data points in the categories of loan details, loan costs, eligibility and accessibility, customer experience, and the application process. We rated CIT Bank 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 scores and time in business requirements and the geographic availability of the lender. Finally, we evaluated CIT Bank business loan customer support tools, borrower perks, and features that simplify the borrowing process—like online applications, prequalification options, and mobile apps.
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