Citibank Business Loans Review

(May 2024)

Citibank Business Loans Review

In This Article

Our Verdict

Men using ATMs at Citibank

Citibank is a major bank in the United States that offers a range of financial products and services, including personal and business banking. Citibank provide various types of business loans with flexible payment options, ranging from $10,000 to $2 million with repayment terms up to 10 years. Citibank has a significant presence across the country with branches and ATMs located in major cities and towns. The bank’s headquarters is in New York City at 399 Park Avenue, New York, NY 10043. Citibank has additional offices and operations in 50 states including, Arizona, Alaska, California, Colorado, Florida, Georgia, New Jersey, Oklahoma, North Carolina, Washington, Utah, Pennsylvania, Texas and Michigan. Citibank’s website is www.citibank.com. You can call 1-800-374-9700 for enquires

Pros

  • Large network of branches and ATMs
  • Wide range of products and services
  • User-friendly online banking platform
  • Substantial loan amount
  • Competitive interest rates
  • Multiple ways to contact Citibank’s customer service

Cons

  • Poor customer service
  • Higher credit requirements
  • High fees, including monthly account fees and ATM fees
  • Limited physical branch locations
  • Low interest rates on savings accounts
  • Higher minimum balance requirements for some accounts.

Who This Product Is Best For

Citibank

Citibank is best for business owners who:

  • Already have a Citibank deposit account open for at least 12 months
  • Need a large loan amounts
  • Prefer a wide range of financial products and services from one institution.
  • Have established businesses with a strong credit score and revenue stream
  • Need a flexible loan terms and repayment schedule.

Who This Product Isn't Right For

Business owners who may not find Citibank to be the best option are those who:

  • Seek a lender with lower fees and interest rates.
  • Don’t meet the eligibility requirements for Citibank’s business loan products, such as the 12-month deposit account requirement.
  • Require a higher loan amount than the $2 million maximum offered by Citibank.
  • Need funding quickly
  • Have low revenue and poor credit scores

What This Product Offers

Business term loans: These loans feature lump sum of money paid back over a set period of time with interest.

Business lines of credit: You can receive an approval for a credit limit and can draw down funds as needed. Interests are charged only on the amount borrowed.

SBA loans: Loans partially guaranteed by the SBA. Good option for businesses that may not qualify for traditional bank loans.

Equipment loans: You can purchase or lease equipment needed to run your business operations with equipment financing.

Commercial real estate loans: You can use this to finance the purchase of properties such as warehouses and office buildings.

Healthcare practice finance: Citibank Health practice finance provides specialized resources and expertise to help healthcare practitioners manage their finances more effectively.

Product Details

Business Lines of Credit:

 Citibank provides a flexible borrowing option to business owners through its lines of credit. Here is a detailed explanation of what you need to know:

Loan Amount

$10,000 to $5 million

Interest Rates

Interest rates can either be fixed or variable

Repayment Terms

Flexible and can range from 12 to 36 months

Annual Fees

Ranging from $150 to $500

Collateral

Secured lines of credit

Business Term Loans:

Citibank offers term loans as a popular type of business loan that provides borrowers with a fixed lump sum of money, which is paid back over a set period of time with interest. The loan amounts can range from $10,000 to $2 million, and the repayment terms can be up to 10 years, depending on the loan type and amount.

Loan Amount

$5,000 to $5 million

Interest Rates

Competitive fixed-rates

Loan Terms

Up to 7 years

Origination Fees

Varies

SBA Loans:

Citibank provides SBA loans to aid small businesses in obtaining financing for various purposes, such as working capital, equipment procurement, and real estate. The Small Business Administration backs these loans, and they are available to businesses that fulfill specific eligibility criteria. Citibank offers 7(a) loans, which are the most common form of SBA loan, as well as SBA Express loans, which provide a quicker approval process for smaller amounts. The loan amounts offered can vary from $50,000 to $5 million, and the repayment terms can last up to 25 years for real estate loans and up to 10 years for other loans.

Loan Amount

$10,000 to $5 million

Interest Rates

Ranges from 6% to 13%

Collateral

Yes, real estate or business equipment

Repayment Terms

5 to 25 years

APR

Varies

Commercial Mortgage:

Citibank provides commercial mortgage loans to businesses that want to buy or refinance properties. These loans come with fixed or variable interest rates and are available for different types of properties, such as retail spaces, office buildings, industrial facilities, and more. The loan amounts range from $250,000 to $5 million or higher, depending on the borrower’s needs. The repayment terms of Citibank’s commercial mortgage loans vary from 5 to 20 years, and borrowers can choose fully amortizing loans up to 25 years. The bank offers flexible payment options and different prepayment penalties based on the loan type.

Healthcare Practice Finance:

Citibank Healthcare Practice Finance offers specialized financial solutions and resources to healthcare professionals, including medical, dental, and veterinary practices. They provide tailored financing options for equipment purchases, working capital, and real estate. Loan amounts range from $250,000 to $5 million with repayment terms of up to 10 years for real estate and 7 years for other loans. Interest rates vary based on creditworthiness. To qualify, healthcare professionals need a strong credit history, adequate cash flow, and low debt-to-income ratio, and must provide financial statements and business tax returns during the application process.

Where This Product Stands Out

Range of Financial Products: With Citibank, not only can you access business loans, but you can also use other banking products such as credit cards, mortgages, and personal loans. It enables you to manage your finances easily, as you only need to deal with one financial institution for all your financial needs.

Additionally, having a range of financial products from one institution can give you access to better rates and more favorable terms. For example, if you have a good credit history with Citibank, you may be able to negotiate better terms and lower interest rates on your loans or credit cards. This can save you money in the long run and help you manage your cash flow more effectively.

Competitive Rates: When compared to other lenders, Citibank may offer more competitive interest rates if you have a strong credit scores and financials. Lower interest rates mean lower borrowing costs, which can translate to lower monthly payments, more manageable debt, and increased profitability for the business.

However, it’s important to note that interest rates for business loans can vary depending on a number of factors, including the loan type, loan amount, repayment term, and the borrower’s creditworthiness. While Citibank may offer competitive rates, it’s always a good idea for you to compare rates from multiple lenders to ensure you are getting the best deal possible.

Flexible Repayment Terms: Tailor your loan to meet your needs and budget constraints by taking advantage of Citibank’s flexible repayment terms. You can choose from a variety of options, including fixed and variable rates, and terms ranging from a few months to several years. This ensures that you can find a repayment plan that works for your unique financial situation and helps you achieve your business goals.

Specialized Guidance and Advice: Access to specialized expertise is a major advantage of Citibank business loans. By working with a lender that understands the unique challenges and opportunities of your industry, you can access financing solutions that are specifically tailored to your needs. To benefit from this advantage, consider:

  • Exploring Citibank’s specialized financing options for your industry.
  • Taking advantage of specialized tools and resources.
  • Accessing experienced lending specialists who can provide guidance throughout the loan process.

Customizable Loan Terms: Choose customizable loan terms that fit your unique financial situation and business needs with Citibank business loans. Create a loan package that works for you, with options including repayment terms, interest rates, and payment schedules. Tailor your repayment term to a few years or several decades, depending on the type of loan and your business needs, to help manage your cash flow and avoid large monthly payments.

Where This Product Falls Short

Stringent Eligibility Requirements: Keep in mind that Citibank’s requirements for deposit account relationships can be strict. Make sure you have an established relationship with the bank before applying for a loan.

Limited Pool Of Potential Borrowers: Due to the strict eligibility requirements, Citibank’s loan products may not be accessible to businesses that are new to the bank or who prefer to use a different financial institution for their deposit accounts. This could limit the pool of potential borrowers who can access Citibank’s loan products.

Time-consuming Application Process: The application process for Citibank’s business loans can be time-consuming and may require extensive documentation. Be prepared to invest the time and effort necessary to complete the application process.

Higher Fees: Citibank charge origination fees, late payment fees and prepayment fees that can increase the overall cost of borrowing. This can be a disadvantage for businesses that are looking to minimize their borrowing costs. For example, origination fee ranges from 1% to 5% of the loan amount.

Collateral Requirements: Citibank’s business loans may require collateral, such as real estate or equipment, which can be a barrier if you do not have significant assets to pledge as collateral.

How to Qualify for This Product

To qualify for a business loan from Citibank, meet the following eligibility criteria:

Be in Business Operations For at Least Two Years: Citibank requires you to be in operation for at least two years. However, some loan products may require a longer time in business.

Possess a Track Record of Stable Revenue: Citibank may require you to have a certain level of annual revenue, depending on the loan product. For example, the minimum annual revenue for a term loan is $100,000.

Have a Good Credit Score: Citibank typically requires a minimum credit score of 680 for business loans. However, some loan products may require a higher credit score.

Run a Deposit Account: Citibank requires potential borrowers to have a deposit account with the bank for at least 12 months to qualify for a business loan.

Demonstrate a Strong Business Plan: Citibank considers a strong business plan and potential for growth when evaluating loan applications. Provide a detailed business plan that outlines how you plan to use the loan proceeds to achieve your business goals. Include financial projections that demonstrate how the loan will help your business grow and improve its products or services.

How to Apply for This Product

A representative from Citibank declined to give details about their loan application requirements, but suggested that it varies based on individual situations and a Citibank small business banker can guide applicants through the necessary documents. However, most business loan applications generally require similar documentation, with additional requirements depending on the lender. You can provide:

  • Business tax returns for the past two to three years
  • Bank statements for the past three to six months
  • Business plan
  • Business financial statements
  • Legal documents(Ownership structure, business’s legality)

Alternatives to This Product

Capital One

Capital One offers a range of business loans with affordable interest rates for qualified borrowers, including term loans, lines of credit, and SBA loans. To help you manage your finances properly, Citibank provide a simple application process in addition to a variety of online tools and resources. To qualify for business loans from Capital One, you need a minimum credit score of 640–and interest rates vary depending on the loan type.

Chase

Chase provides you with several business financing options, including business term loans, business lines of credit, equipment loans and SBA loans. If you have a minimum credit score of 680,

you can apply for a business loan—and the cool thing is, Chase has an in-house team of business funding specialists who can help you navigate the lending process. For your information, Chase’s interest rates fluctuate from 4.99% to 22.99%, depending on economic conditions.

Wells Fargo 

Wells Fargo can be a good alternative if you do not meet the eligibility criteria for a Citibank business loan. Wells Fargo offer various types of loans, including term loans, lines of credit, equipment financing, and SBA loans. Wells Fargo has a simple application process and offers fair interest rates to eligible borrowers. To qualify for their term loans, you need a minimum credit score of 680, and the interest rates can range from 5.50% to 22.99%.

Customer Reviews

Citibank has received a good rating of 3.7 out of 5 stars on the WalletHub website based on over 30,000 customer reviews. However, it has a poor rating of 1.5 out of 5 stars on Trustpilot based on reviews from over 70 customers.

Methodology

We reviewed *this product* based on 20 data points in the categories of loan details, loan costs, eligibility and accessibility, customer experience and the application process. We rated *this product* 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 *this product* customer support tools, borrower perks and features that simplify the borrowing process—like online applications, prequalification options and mobile apps.

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