Fifth Third Bank Business Loans Review

(April 2024)

Fifth Third Bank Business Loans Review

In This Article

Our Verdict

Fifth Third Bank is a financial institutions that offer a range of banking and financial services to their customers. Fifth Third Bank is a regional bank based in Cincinnati, Ohio, and has operations in 10 states: Ohio, Florida, Georgia, Illinois, Indiana, Kentucky, Michigan, North Carolina, Tennessee, and West Virginia.

Fifth Third bank offers personal and business banking, investment services, mobile and online banking platforms. You can contact Fifth Third Bank’s customer support via 1-800-972-3030 and www.53.com/ .

Pros

  • Wide range of financial products and services
  • Mobile banking app and online banking platform for convenient account management
  • No minimum deposit
  • Over 50,000 fee-free ATMs across the country
  • Personalized service

Cons

  • Mixed customer reviews on customer service and satisfaction
  • Limited geographic reach compared to national banks
  • Unexpected fees and charges(maintenance and overdraft fees)
  • Limited online banking tools

Who This Product Is Best For

  • Established businesses with strong credit history and financial stability may get lower interest rates and higher borrowing amounts.
  • Small businesses seeking flexible borrowing options, such as business lines of credit or SBA loans, may find Fifth Third Bank’s loan options to be suitable.
  • Businesses located in the Midwest and Southeast regions may benefit from the convenience of having a local lender.
  • Businesses in industries such as healthcare, manufacturing, and professional services, as Fifth Third Bank has specialized lending programs for these sectors
  • Business owners who want access to a wide range of financial products and services, including merchant services, payroll processing, and wealth management

Who This Product Isn't Right For

  • Start-up businesses with little or no credit history may find it difficult to qualify for a loan from Fifth Third Bank.
  • Businesses looking for a quick approval process may find that Fifth Third Bank’s application and approval process can take longer than some other lenders.
  • Businesses that have had past negative experiences with Fifth Third Bank or other regional banks may prefer to seek loans from larger national banks or online lenders.
  • Businesses with limited operating history.
  • Businesses with specific loan needs

What This Product Offers

Term loans: A lump sum of money that is paid back over a set period of time with interest. Used for various business purposes.

Secured and unsecured lines of credit: A flexible borrowing option where you can draw funds as needed up to a certain credit limit. Secured lines require collateral while unsecured lines do not.

Commercial real estate loans: Used to purchase or refinance commercial property, such as office buildings or industrial warehouses.

SBA financing: Government-backed loans with more flexible terms and lower down payment requirements.

Equipment financing: Loans specifically designed to help businesses purchase or lease equipment. The equipment serves as collateral for the loan.

Product Details

Term Loans

Fifth Third Bank offers business term loans as a financing option, which require borrowers to make a lump sum payment with interest over an agreed period of time. The bank’s credit policies and the borrower’s creditworthiness determine the amount borrowed, interest rate, and repayment period.

Loan Amount

Undisclosed

Interest Rates

Varies depending on your loan amount, credit score and other factors. Interest rates can be fixed or variable.

APR

Varies depending on your business’s eligibility criteria.

SBA Loans 

Fifth Third Bank provides Small Business Administration (SBA) loans that receive partial guarantees from the US government. SBA loans available at Fifth Third Bank include SBA 504 loans, SBA 7(a) loans, and SBA Express loans. SBA loans provide small businesses with access to affordable financing. Additionally, Fifth Third Bank has the designation of being an SBA Preferred Lender and has the experience to process and service SBA loans. This means that they can make final credit decisions without having to send loan applications to the SBA, thereby allowing for a faster loan approval process.

Here are the features of Fifth Third Bank’s SBA loans:

Loan Amount

Varies by loan program.

  • SBA 504 loans: from $125,000 to $10 million
  • SBA 7(a) loans: from $5,000 to $5 million
  • SBA Express loans: from $5,000 to $500,000

Fees

Fees may include application fees, packaging fees, guarantee fees, and prepayment penalties.

Terms

Terms can range from 7 to 25 years.

Repayment Schedule

Monthly

APR Range

Rates for SBA loans from Fifth Third Bank vary based on the qualifications of the business.

Secured Lines of Credit

A secured line of credit from Fifth Third Bank requires the borrower to put up collateral, such as inventory, equipment, or real estate, to secure the loan. The amount of the loan can range from $25,000 to $500,000, and the interest rate is typically variable.

The fees associated with the loan may include an annual fee, transaction fees, and late payment fees. The repayment terms for secured lines of credit vary depending on the borrower’s needs and can range from 1 to 5 years. The Annual Percentage Rate (APR) for these loans is determined by several factors such as the borrower’s credit score, the amount borrowed, and the length of the repayment term.

Unsecured Lines of Credit

Unsecured lines of credit from Fifth Third Bank do not require any collateral, and the loan amount can range from $10,000 to $100,000. The interest rate is variable and typically higher than a secured line of credit due to the increased risk to the bank.

The fees associated with the loan may include an annual fee, transaction fees, and late payment fees. The repayment terms for unsecured lines of credit vary depending on the borrower’s needs and can range from 1 to 5 years. The Annual Percentage Rate (APR) for these loans is determined by several factors such as the borrower’s credit score, the amount borrowed, and the length of the repayment term.

Commercial Real Estate Loans

Fifth Third Bank offers commercial real estate loans to businesses looking to finance the purchase or refinance of property used for commercial purposes. Here are some key details about these loans:

  • Loan Amount: Fifth Third Bank offers loans starting at $25,000 up to $10 million depending on the property and your financial strength.
  • Fees: Loan origination fees and appraisal fees may apply.
  • Terms: Terms range from 5 to 20 years.
  • APR: APRs vary depending on the loan amount, your creditworthiness, and other factors.

Equipment Financing

Fifth Third Bank offers equipment financing to businesses as a way to purchase or lease new or used equipment. Equipment financing is a type of loan that is secured by the equipment being financed, and typically has lower interest rates than unsecured loans. Here are some details about equipment financing from Fifth Third Bank:

  • Loan Amount: Fifth Third Bank loan amounts can range from $5,000 to $1,000,000.
  • Fees: Fees may include application fees, appraisal fees, and other closing costs.
  • Terms: The loan terms can range from 1 to 5 years, depending on the type of equipment being financed.
  • APR: The Annual Percentage Rate (APR) can vary based on factors such as the borrower’s credit score, the loan amount, and the repayment term.

Where This Product Stands Out

Wide Range of Banking and Financial Services

At Fifth Third Bank, you can access a variety of financial services, from checking and savings accounts to loans, mortgages, cash management, merchant services, investment management, financial planning, and insurance services. The bank’s goal is to provide a comprehensive suite of offerings that can meet all your financial needs under one roof, so you don’t have to deal with multiple institutions. By having all your financial services in one place, you can easily track your financial health and simplify your financial management. Fifth Third Bank is dedicated to providing the necessary financial tools for your success.

Rewards Programs

Fifth Third Bank provides various rewards programs that gives you the opportunity to earn rewards for eligible purchases made with your credit cards and other accounts. By redeeming your rewards for goods, travel, or statement credits, you can offset the cost of purchases or travel expenses. Fifth Third Bank offers both cashback and points-based rewards programs to cater to the different spending habits and preferences of its customers. It’s important to note that rewards may vary depending on the type of account and level of activity, so you should review the terms and conditions of each rewards program carefully to maximize your benefits.

Free Access to ATMs Nationwide 

Fifth Third Bank provides fee-free access to over 50,000 ATMs nationwide, making it easy for businesses to access their funds when they need them. Additionally, the bank does not require a minimum deposit or balance, allowing businesses to open and maintain accounts of all sizes.

Fast Funding

Fifth Third Bank has a quick loan approval process, thanks to its designation as an SBA Preferred Lender. This means that it can make final credit decisions without sending applications to the SBA, resulting in a faster loan approval process.

No Minimum Deposit or Balance Requirements

Fifth Third Bank is unique in that it doesn’t have any minimum deposit or balance requirements for its checking and savings accounts. This means that you can open an account with as little or as much money as they want. Additionally, even if the account only has one cent left in it, it will still earn interest according to the yearly percentage yield. This is a great benefit for you if you do not have a lot of money to deposit or who want to keep a low balance in your accounts. It also means that you won’t receive charges for falling below a minimum balance requirement.

Where This Product Falls Short

Lengthy Application Process

While Fifth Third Bank offers a wide selection of loan products for both personal and commercial purposes, one area where it falls short is its loan application process. The application process can be lengthy and time-consuming, taking several weeks or even months to complete, which can be frustrating for customers who need funds urgently, especially in an emergency. This slow process can be a significant drawback for those who prioritize speed and efficiency when applying for loans. To address this issue, Fifth Third Bank may need to streamline its application process, invest in technology that can speed up the underwriting process, and increase staffing to handle a larger volume of applications.

Lack of Clarity

It’s important to note that while Fifth Third Bank offers a range of financial products and services, it may not be as transparent as some customers would like. If transparency is a priority for you, it’s important to carefully review the terms and conditions of any account or service you’re considering from Fifth Third Bank. It’s also a good idea to ask questions and seek clarification from a bank representative to ensure that you fully understand the costs and requirements associated with the product or service. By doing so, you can make informed decisions and avoid any unexpected charges or fees.

Limited Online Banking Features

While Fifth Third Bank offers online banking, you may find that it lacks some of the more advanced features that are available with other banks.

Limited Branch Network

While Fifth Third Bank has a significant number of branches, it may not have as many as some of its larger competitors. This can make it more difficult for you to access in-person services if you do not live near a branch.

How to Qualify for This Product

The eligibility requirements for Fifth Third Bank’s business loans vary depending on the specific loan type. However, meeting certain criteria is necessary to qualify for an SBA loan at the bank.

Good Credit: To apply for a business loan at Fifth Third Bank, ensure that your personal and business credit history is in good standing. The bank requires a credit score of at least 700 for loan approval, which can be achieved by paying bills on time and maintaining a low credit utilization ratio.

Business Financials/Cash Flow: To apply for a business loan with Fifth Third Bank, you need to provide detailed financial information such as income statements, balance sheets, and cash flow statements to showcase your business’s financial health and ability to repay the loan. It’s crucial to ensure that your financial statements are accurate and up-to-date. Your business must also demonstrate sufficient cash flow to repay the loan, and you should be ready to provide a detailed breakdown of your revenue streams, expenses, and other financial data to give the bank a complete picture of your business’s financial standing.

Time in Business: To increase your chances of getting approved for a business loan from Fifth Third Bank, be aware that the length of time your business has been operating is an important factor. While the bank prefers businesses that have been operating for at least two years, newer businesses can still be approved for a loan by providing a detailed business plan and financial projections. Fifth Third Bank takes all factors into account when making a loan decision.

Purpose of the loan: Providing a clear and specific purpose for the loan, such as funding a new project or purchasing new equipment, can demonstrate your business’s need for the loan and increase your chances of getting an approval.

Collateral: Offering collateral, such as real estate or equipment, can improve your chances of receiving an approval for a loan. Collateral provides the bank with security in case you are unable to repay the loan.

Co-signer: Having a co-signer with strong credit and financials can also improve your chances of receiving an approval for a loan. The co-signer agrees to take responsibility for the loan if you are unable to repay it.

How to Apply for This Product

A Fifth Third Bank representative declined to give specific details on their application requirements but mentioned that it varies depending on the situation, and a Fifth Third Bank small business banker can guide you through the application process. However, most business loan applications require similar documents, along with additional lender-specific requirements.

  • Business license or certificate
  • Three years of personal income tax returns
  • Three years of business tax returns
  • Name, date of birth, residential status
  • Social Security number
  • Ownership percentage
  • Personal financial statements
  • Business plan

Alternatives to This Product

Funding Circle

Consider Funding Circle if you meet the eligibility requirements for a Fifth Third Bank business loan but desire prompt funding. Funding Circle is an online lender that provides business loans to small and medium-sized businesses. The loan amounts range from $25,000 to $500,000–with repayment terms of 6 months to 5 years. The interest rates vary based on factors such as the borrower’s credit score, cash flow, and other financial metrics. However, the interest rates typically range from 4.99% to 27.79%.

To qualify for a Funding Circle business loan, a business must have been in operation for at least two years, have a minimum credit score of 660, and have annual revenues of at least $150,000. The application process is typically fast and straightforward, with prequalification available in minutes and funding available in as little as a few days. Additionally, Funding Circle also offers competitive rates and flexible repayment terms– making it an attractive option for businesses seeking financing.

Bank of America

Bank of America offers business loans with loan amounts ranging from $10,000 up to $5 million, the specific loan terms, amounts, and APR offered by Bank of America may vary depending on the type of loan and the your creditworthiness. For example, the APR for a Bank of America Business Advantage Term Loan can range from 5.25% to 11.25% for loans up to $2 million with repayment terms of up to 25 years. The APR for a Business Advantage Line of Credit can range from 4.50% to 10.00% for credit lines up to $250,000 with terms of up to five years.

To qualify, you need a good credit score, solid business plan, and strong financial history, along with considerations such as revenue, cash flow, and collateral. You may also need to provide documentation such as tax returns, bank statements, and financial statements to support their loan application.

Customer Reviews

Fifth Third Bank has an overall rating of 1.4 out of 5 stars on the Trustpilot website, based on 84 customer reviews. The reviews indicate that many customers are not satisfied with the bank’s customer service, unexpected fees, and fraudulent activity. While a few positive reviews exist, the majority of the reviews suggest that Fifth Third Bank needs to improve its customer service and transparency.

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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