Business loan

Truist 2021 Review | Best business loan and financing options

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Collateral 1.0
Online application 1.0
Quick financing 1.0
Credit requirements 1.0
Variety of loan types 2.0
Editor’s Note 6.0

Costs

The cost of an SBA loan through Truist varies depending on several factors including your credit score and the amount you borrow. Although the interest rate starts at just 5%, you will likely have higher rates if your credit rating is low.

Many non-SBA loans from Truist may have fixed or variable interest rates. Fixed interest rates remain the same throughout the life of the loan, while variable interest rates can be raised or lowered over the course of the loan.

Apply for a loan

The SBA offers low interest rates and loans that can last for 25 years. This can be a lifeline for a small business in need of financing, as the payments are small and manageable over such a long term.

To get an SBA loan through Truist, you start by contacting the company. You can either call Truist directly or visit one of its branches. From there, Truist works with you to determine which SBA loan is best for your business. This process is much more cumbersome than applying for a loan from an alternative lender like Rapid Finance. With alternative lenders, you can complete the process online fairly quickly, often receiving a funding decision the same day. It can take several weeks for an SBA loan to be approved after you apply, which is part of the reason why this type of financing is not for all business owners.

There are many reasons for borrowing money through SBA loan programs. Borrowers looking to start or already operating a small business can use these loans for working capital, to buy land or equipment, to make renovations or to refinance debt.

You must meet several conditions to be eligible for SBA loans:

  • You must operate a business for profit.
  • You must have a net worth of less than $ 15 million.
  • Your business must have an average net income of less than $ 5 million.
  • You need to have a reasonable amount of invested capital.
  • For some of his loans, you must first try to get a loan elsewhere.
  • The funds must go for sound business purposes.
  • You must not be in arrears on an existing debt to the US government.

Types and conditions of loan

Truist offers three types of SBA Loans: 504 Loans, 7 (a) Loans, and SBA Express Loans. Since the SBA backs the majority of these loans, banks like Truist can offer very flexible terms and affordable rates. This is true of all SBA lenders, but Truist has years of experience over some of its rivals.

  • The SBA 504 loan is for long-term borrowers who need cash for construction, real estate, or start-up costs. Loans are up to $ 10 million and terms can be up to 25 years.
  • With an SBA 7 (a) loan, you can borrow up to $ 5 million and pay it back over five to seven years. It is for working capital, inventory and other business purposes. The conditions differ for home, fixed and equipment loans.
  • The SBA also offers Express Loans and Lines of Credit, which offer faster financing and less paperwork. These loans are capped at $ 250,000.

If you find that an SBA loan is not for you, Truist has other loan options. It offers fixed and variable rate term loans with flexible repayment schedules. The Truist Equipment Finance Loan has little or no closing costs and gives you the flexibility to purchase the equipment at the end of the lease. It also offers lines of credit.

You can apply for any of the three SBA loans with Truist.

Source: SBA

SBA 7 (a) loans under $ 25,000 do not require collateral. If the loan is more than $ 350,000, the SBA wants lenders to guarantee as much as possible. There is no collateral requirement for SBA Express loans.

Did you know?Did you know? The interest rate on SBA loans starts at 5%, and terms can last up to 25 years. Your credit score will determine the rate you pay.

Helpful Tips

To streamline the application process, try to gather as many documents in advance as possible. Truist will work with you to put all the paperwork together which is another reason we love this lender. The more prepared you are, the faster the process will be.

The SBA requires more documentation when you apply for a loan than other lenders.

Source: SBA

Features of Truist

SBA Preferred Lender Designation Truist has proven to have the know-how to issue SBA loans and has received the SBA Seal of Approval.
Flexible terms Since the SBA backs most loans, Truist can offer flexible rates.
Variety of loan types In addition to SBA loans, Truist offers lines of credit, term loans, and equipment financing.

SBA Preferred Lender

Truist, the combination of SunTrust and BB&T, has years of experience providing SBA loans to small business owners. It has received the commendable designation of SBA Preferred Lender, which means Truist understands how these loans work and is dedicated to helping borrowers get the best deal. Since the SBA application process is so extensive, you need a loan partner who has seen the good and the bad before to make sure you take all the appropriate steps.

Flexible terms

SBA loans offer very flexible terms, which can make payments manageable for small business owners. Depending on the loan you are applying for, the term can range from five to 25 years. This level of flexibility is essential, especially if you are taking on a large loan that would be difficult to repay over a short period.

Variety of loan types

You might think you want an SBA loan, but change your mind during the process. This is not a problem with Truist. In addition to three types of SBA loans, Truist offers several other loan products, including term loans and lines of credit. This wide variety can be appealing to businesses who may not be sure which financing option is best for them.

Customer service

Truist provides customer service by phone, email and at its branches during standard business hours. It has an A + rating from the Better Business Bureau and has been accredited since 1967.

We love that this lender provides a lot of advice, whether in person or over the phone. Applying for an SBA loan can be a daunting task, so any help a business owner can get will be appreciated.

Disadvantages

The biggest disadvantages of SBA loans are the application process and the time required to obtain financing. The application is long, with a lot of paperwork required, and it can take weeks from approval to get funding into your bank account. A mistake here or there can slow down the process considerably.

Additionally, if you are an established business owner who could get a loan elsewhere, you will not be eligible for an SBA loan. The SBA requires its lending partners, including Truist, to administer a “credit elsewhere” test, which shows whether an applicant can obtain financing on favorable terms from non-federal sources.

adviceAdvice: SBA loans are very paper intensive and can be time consuming to process. To speed it up, gather as much documentation in advance as possible.

Summary

Truist is a small business lender with a solid track record of providing SBA loans and helping borrowers through the process.

We recommend Truist for:

  • Companies that want long repayment terms and affordable interest
  • Businesses that don’t need the money right away
  • Companies that are comfortable with a long application process

We do NOT recommend this lender for:

  • Businesses that need a simple online application process and fast financing
  • Companies over $ 5 million


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