Our Verdict
TD Bank is one of the biggest conventional banks in the U.S., having branches and ATM networks across the country. The bank is an SBA Preferred Lender and offers diverse business loan products to small businesses. TD Bank renders business loan services in up to 15 states and Washington DC.
Starting at $10,000, you can get business funding up to $5 million with TD Bank—depending on the loan type, though; the interest rate starting at 0.74% and up to 25 years repayment term. If you consider TD Bank a best fit for your business financing option, you need to meet with the bank’s representative in order to know the credit score requirements.
Pros
- Welcomes new businesses.
- Ensures quick business loan processing and approval.
- Offers higher loan limits.
- Is an SBA Preferred Lender.
- Receives above-average customer rating.
Cons
- Demands borrower’s personal guarantee
- Does not offer unsecured products for both term loans and business lines of credit.
- Requires rigorous paperwork for $250,000+ business financing.
- Makes automatic loan deduction from the borrower’s business checking account. That said, you must open a TD Bank checking account so you can get the bank’s business loan.
- Offers business financing solutions in only 15 states—Washington DC, Connecticut, Delaware, Florida, Massachusetts, Maryland, Maine, North Carolina, New Hampshire, New Jersey, New York, Pennsylvania, Rhode Island, South Carolina, Virginia, and Vermont.
Who This Product Is Best For
TD Bank business loan products are best entrepreneurs who:
- Transact in any of the 15 states where business aid are available.
- Are existing TD customers and enjoy the bank’s services.
- Prefer interacting with conventional banks—especially SBA Preferred Lender banks.
- Require personalized business loan.
- Are new and established business owners.
Who This Product Isn't Right For
TD Bank business financing products may not be best for business owners who:
- Prefer online lenders.
- Don’t conduct businesses outside of the East Coast
What This Product Offers
- Business term loans. You get a large sum and make installment repayment—plus interest—over an agreed-upon time plus interest.
- Business lines of credit. Get access to funds when you need it and repay with interest later. Business lines of credit work similarly to credit cards except that you pay interest only on the amount you borrow (or draw) with business lines of credit.
- Commercial mortgages. If you want to purchase a property for your business or clear an existing commercial mortgages, this TD Bank business loan product is a good option to consider.
- SBA loans. Being a SBA Preferred Lender, you can get various types of SBA loans—SBA 7(a) Loans and SBA 504 Loans, for example—from TD Bank.
Product Details
Business term loans
TD Bank offers both secured and unsecured term loans to business owners. However, the bank doesn’t distinguishes between secured and unsecured loan. Hence, most of TD Bank’s business term loans are either secured by cash, equipment, or inventory with repayment term up to 60 months (for the bank’s long-term loan).
Thanks to TD business term loans, you can get anything from $10,000 up to $1,000,000 with up to five years repayment term.
Product | Term loans |
Loan amounts | $10,000 to $1,000,000 |
Repayment term | 12 to 60 months |
Approximated APR | Confidential |
Fee | Confidential |
Business lines of credit
TD doesn’t offer unsecured business lines of credit card. To get the product, you need to present collateral in the form of cash or account receivable. To qualify for TD business line of credit, you must have an active business checking account with a minimum balance of $40,000 with the bank.
Meet with a TD banker so you can learn more about the terms of the bank’s business lines of credit—interest rates, repayment terms, and credit requirements, for example—before you apply.
Product | Business lines of credit |
Loan amounts | $25,000 to $500,000 |
Repayment term | Confidential |
Approximated APR | WSJ Prime Rate + 0.74% |
Fee | Confidential |
Commercial mortgages
With commercial mortgages you can buy real estate or refinance your any existing loan. The interest you pay depends on your relationship with the bank and your credit score. Don’t forget, the property you purchase or refinance is the security for the loan and the product max out at $1million with five years repayment term (amortization can be up to 20 years).
Product | Commercial mortgages |
Loan amounts | Up to $1,000,000 |
Repayment term | Up to 5 years and amortization up to 20 years |
Approximated APR | Confidential |
Fee | Origination fee and undisclosed fee |
SBA 7(a) loans
To get an SBA 7(a) loan, you have to make a 10% minimum down payment of the amount you require. And you can do a couple of things with the SBA 7(a) loan, such as hiring new staff, buying real estate, purchasing new equipment, and so on).
Product | SBA 7(a) loan |
Loan amounts | Up to $5,000,000 |
Repayment term | Up to 300 months |
Approximated APR | Rates depend on SBA maximums |
Fee | Confidential |
SBA 504 loans
SBA 504 loans is another TD Bank business financing solution that allows you to make higher equipment or real estate purchases. The loan category has two tiers: first mortgage SBA 504 loans (which offers no maximum loan amount) and second mortgage SBA 504 loans (which cap at $5,500,000 loan amount).
Product | SBA 504 loans |
Loan amounts | No maximum loan amount for first mortgage and up to $5,500,000 for second mortgages |
Repayment term | Up to 240 months |
Approximated APR | Rates depend on SBA maximums |
Fee | Confidential |
Where This Product Stands Out
Open to new businesses
TD Bank doesn’t specify any minimum time in business before you can qualify for its loan products.
Offers higher loan limits
If you qualify, you can get up to $5,000,000 (SBA 7(a) loans) with TD Bank business loan.
Make quick business loans approval
TD Bank makes lending decisions quickly (if you qualify, you may hear from them as soon as one business day after submitting your application).
Where This Product Falls Short
High qualification requirements
Generally, qualifying for a small business loan isn’t easy. To qualify for any of TD Bank’s business loan products, your business must stand out in terms of having stellar personal and business credit scores, trackable records of business successes, and consistent annual revenue.
Delayed funding
Although, TD Bank checks your application in details and even if you qualify, it may not release the cash as early as you need it.
Not present in all 50 states
None of TD Bank’ business loans is your best fit if you don’t live in Washington DC or any of the 15 states where the products are available.
Origination fees on loans
Expect to pay origination fee if you’re applying for a business line of credit, commercial mortgage, or business term loan.
Physical application
If you’re applying for any loan above $250,000 , you have to print the application form online and submit it in person at any TD Bank extension.
How to Qualify for This Product
TD Bank, unfortunately, doesn’t release any qualification requirements—such as minimum credit score, minimum annual revenue, and minimum time in business—for its products. That is not to mean you won’t require good to excellent credit score, credible income revenue, track record of business experience, etc. in order to boost your chances of getting an approval. For TD Bank business loans:
- Expect to make 10% down payment for any SBA products.
- Open a business checking account with TD Bank so you can opt for autopay for business lines of credit and term loans.
- Maintain a minimum balance of $40,000 in your business checking account in order to qualify for business lines of credit offer.
- Get a copy of your government issued ID card, most recent tax returns, your business and personal financial statements, etc.
How to Apply for This Product
TD Bank business loans application varies from one loan product to the other. Notwithstanding, you can apply for any loan up to $250,000 online. If you require a higher loan amount, you need to visit the bank’s branch in order to apply. Get the following documents handy as you apply for any TD Bank business loan products:
- Business’ legal name and address.
- Tax ID number.
- Recent business tax returns.
- Partnership banking agreement (if applicable to your business).
- LLC operating agreement (if applicable to your business).
- Entity guarantee form (if an entity owns the business partly or completely).
Alternatives to This Product
Funding Circle
Funding Circle offers term loans between $25,000 and $500,000 with repayment term from 6 months all the way up to five years, and interest rates between 4.99% and 27.79%. However, you require a minimum credit score of 660, $150,000 business annual revenue, and 2+ years of business experience.
Lending Club
If you don’t require a larger funding, Lending Club is a good alternative to consider. You can get anything from $5,000 to $300,000 with repayment term between 12 and 60 months. The interest rates an Lending Club business financing products start at 5.9% and max at 25.9%. Don’t forget, you need to maintain a credit of 620+, have a minimum of 2-year business experience, and run a business that generates at least $75,000 of annual revenue.
Customer Reviews
TD Bank receives an above-average rating—3.8 out of 5-star, based on 1,082 customer reviews on—Consumer Affairs.
Methodology
We reviewed Chase 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 Chase 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 Chase 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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