M&T Bank Business Loans Review

(July 2024)

M&T Bank Business Loans Review

In This Article

Our Verdict

M&T Bank is a commercial bank that offers banking services, loans and credit, investment and wealth management, and insurance products. They have over 750 branches located in several states in the U.S., including New York, Pennsylvania, Maryland, Virginia, West Virginia, New Jersey, Delaware, Connecticut, and Washington, D.C. M&T Bank also has a strong commitment to corporate social responsibility and supports economic development, education, and environmental sustainability initiatives in the communities they serve.

Pros

  • Wide range of financial products and services
  • Large network of branches
  • Strong customer service
  • Online and mobile banking options

Cons

  • Limited geographic coverage
  • High overdraft fees
  • Low interest rates

Who This Product Is Best For

M&T is best for business owners who:

  • Live in Northeastern United States
  • Want all their banking needs met in one place
  • Want to work with a bank that has experience with small business lending and SBA loans
  • Want to have access to physical branches

Who This Product Isn't Right For

M&T Bank may not be suitable for business owners who:

  • Live outside Northeastern United States or frequently travel outside of the region.
  • Prioritize high-interest rates on savings accounts or CDs

What This Product Offers

  • Business loans and lines of credit: Acquire the funds your business requires to finance her operations and growth.
  • SBA loans: M&T Bank is an SBA Preferred Lender and can assist your business with SBA loans.
  • Commercial real estate: You can purchase or finance real estate for your business
  • Equipment financing: You can purchase or lease equipment for your business with M&T bank.
  • Business term loans: A business term loan involves receiving a fixed amount of capital upfront that must be paid back through regular payments over a defined period.

Product Details

Business Term Loans

Business term loans with M&T Bank can either be secured term loan or unsecured term loan. Secured loans require collateral, such as business assets or property, while unsecured loans do not. Secured loans typically have lower interest rates, while unsecured loans may have higher rates due to the increased risk to the lender.

Loan Amount

$10,000-$500,000

Loan Term

1-10 years

Interest Rates

Fixed

Repayment Schedule

Undisclosed

Lines of Credit

As a business owner, you can consider applying for a business line of credit from M&T Bank. This type of financing offers flexible access to funds, allowing you to borrow and repay as needed within a set credit limit. M&T Bank offers competitive interest rates, and you only pay interest on the amount you borrow. M&T Bank may charge fees for opening and maintaining a line of credit, such as annual fees and transaction fees.

Loan Amount

$5,000 to $950,000

Repayment Terms

Varies

Interest Rates

Varies

 

Where This Product Stands Out

SBA Preferred Lender

Being an SBA Preferred Lender is a significant advantage for M&T Bank as it allows them to offer a more streamlined application process for SBA loans. This means that businesses seeking SBA loans through M&T Bank may be able to get approved faster than if they applied through a non-preferred lender. Additionally, as an SBA Preferred Lender, M&T Bank has a proven track record of success in providing SBA loans, which can increase the chances of approval for businesses.

Moreover, M&T Bank’s status as an SBA Preferred Lender indicates that they have met specific criteria set by the SBA, such as demonstrating a strong commitment to small businesses and providing high-quality customer service. This shows that M&T Bank has a long-standing commitment to helping small businesses access the financing they need to grow and succeed.

Competitive Rates

M&T Bank’s competitive rates mean that they offer interest rates on business loans that are comparable to those offered by other financial institutions. This is important because business owners want to secure financing at the lowest possible interest rate. With M&T Bank, businesses may be able to get loans at a more affordable rate, which can save them money in the long run.

Additionally, having a competitive interest rate can help businesses get approved for larger loan amounts, as the monthly payments will be lower. This means that business owners can finance larger projects or invest more in their businesses without being burdened by high monthly payments. Overall, M&T Bank’s competitive rates can be an advantage for business owners looking to secure financing.

Flexible Loan Options

M&T Bank provides different loan options to suit the various needs of business owners. This means that a business owner can choose the type of loan that best fits their financial situation and goals. For example, a business that needs a one-time influx of cash may opt for a term loan, while a business with ongoing expenses may benefit from a line of credit. Furthermore, M&T Bank offers SBA loans and equipment financing, which are specific types of loans that cater to certain industries or purposes. The availability of multiple loan options can provide flexibility for businesses to manage their finances and plan for the future.

Where This Product Falls Short

Higher Fees

In addition to interest rates, lenders may charge various fees to cover the costs associated with processing and managing a loan. These fees can include application fees, origination fees, closing costs, and prepayment penalties, among others.

M&T Bank’s fees for business loans may be higher than those of other lenders, which can increase the overall cost of borrowing. For example, they may charge an origination fee, which is a percentage of the loan amount, to cover the costs of underwriting and processing the loan.

Limited Availability

 M&T Bank has a limited geographic reach, with most of its branches and lending services located in the Northeast and Mid-Atlantic regions of the United States. This means that businesses located outside of these regions may not be able to access M&T Bank’s loan products. This can be a significant disadvantage for business owners who need financing but do not have access to M&T Bank’s services.

Furthermore, even within the regions where M&T Bank operates, their physical branch locations may be limited in certain areas. This can make it challenging for some businesses to access the in-person support and services that they may need when applying for a loan or managing their finances.

How to Qualify for This Product

The specific qualification requirements for M&T Bank’s business loans may vary depending on the type of loan you are applying for. However, in general, here are some factors that M&T Bank may consider when evaluating your eligibility for a business loan:

Credit score: M&T Bank may review your personal and/or business credit history to assess your creditworthiness. Typically, a credit score of 680 or higher is preferred for business loans, although the specific requirements may vary depending on the loan product and amount being sought.

Time in business: Some M&T Bank loans may require that your business has been operating for a certain period of time, such as at least one year.

Annual revenue: M&T Bank may consider your business’s annual revenue to determine your ability to repay the loan. M&T Bank typically requires businesses to have a minimum annual revenue of $50,000 to be eligible for their business loan products. However, the actual revenue requirements may vary depending on the specific loan product and the size of the loan requested.

Collateral: Depending on the type of loan, M&T Bank may require collateral to secure the loan, such as business assets or real estate.

How to Apply for This Product

M&T Bank did not offer specific information on their loan application requirements, stating that the requirements may differ depending on the applicant’s situation. An M&T small business banker can assist with guidance on required documents. However, there are standard documents that are typically required for most business loan applications, in addition to any lender-specific requirements.

  • Business and personal tax returns for the past two to three years
  • Articles of incorporation and other legal documents related to the business’s formation and ownership
  • Business licenses and permits
  • Business plan or executive summary
  • Profit and loss statements and balance sheets for the business
  • Bank statements for the business and personal accounts

Alternatives to This Product

Wells Fargo: Wells Fargo offers a range of business loans, including lines of credit, equipment financing, and term loans. Loan amounts can range from $10,000 to $5,000,000 with interest rates starting from 5.50%. To qualify, businesses typically need to have been in operation for at least two years, have strong credit scores, and meet certain revenue requirements.

OnDeck: OnDeck offers small business loans ranging from $5,000 to $250,000 with interest rates starting at 11.89%. To qualify, businesses typically need to have been in operation for at least one year, have a minimum credit score of 600, and meet certain revenue requirements.

Funding Circle: Funding Circle offers term loans ranging from $25,000 to $500,000 with interest rates starting at 4.99%. To qualify, businesses typically need to have been in operation for at least two years, have a minimum credit score of 620, and meet certain revenue requirements.

Customer Reviews

M&T Bank has an overall rating of 3.8 out of 5 stars on the ConsumerAffairs website, based on 726 customer reviews. The reviews indicate that many customers have reported issues with communication, unexpected fees, and difficulty accessing funds. Some customers have also reported issues with the loan approval process and difficulty reaching a live representative. Positive reviews mention good customer service and smooth loan application processes, while negative reviews mention issues with communication and unexpected fees.

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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