What we like:
Various financial calculators accessible
|Estimated APR||< 60%|
|Loan Amounts||$20,000 – $150,000|
|Term Lengths||1 – 7 years|
The rating in the box above covers all of Citizen Bank’s small business financing products. The product information in the box above is only about the term loan product.
Small business owners are always looking for ways to expand their business. For many, that means taking out a small business loan to purchase inventory, hire staff, move to bigger location, or something else that can help the company grow.
Citizens Bank, the 13th largest retail bank in the United States, has a number of options for small business owners looking for financing. They offer flexible repayment, low or no origination fees, and competitive interest rates.
What Citizens Bank Offers to Small Businesses
Citizens Bank has several products designed specifically for small businesses.
Lines of credit are available that can help you access short-term use funds for paying accounts, handling seasonal business needs, or buying inventory. Business and equipment loans have flexible terms that allow you to purchase assets you might need in your business, such as vehicles or machinery. You can also get a business mortgage that can help with renovations, refinances, or even purchase of commercial property.
With Citizens business credit products, you can infuse your business with much-needed operating cash, purchase inventory, or even buy or fix up a new office or warehouse. With such an established financial institution behind your loan, you can be sure you will receive outstanding support, and you’ll get the best product for your needs—and your budget.
Basic Information: Rates, Terms, Fees, and Limits
Citizens Bank credit products are limited up to $150,000, and lines of credit have an annual fee of $150 for credit up to $100,000. Lines of credit over that have a 0.3% yearly fee.
For equipment loans, you can take out a minimum of $10,000 and maximum of $150,000. The flex loan starts as a line of credit for 6 to 12 months; after that it turns into a term loan with a fixed interest rate depending on your creditworthiness.
Citizens Bank business term loans come with flexible repayment terms which can either fixed or variable rate loans that you can stretch from 7 to 84 months depending on your needs.
With such a wide variety of products, Citizens Bank seeks to make truly customized solutions for business customers; as a result, no two credit packages are alike.
How to Get Small Business Financing from Citizens Bank
The first step in getting approved for business financing at Citizens Bank is to schedule a consultation with a business banker. They’ll talk to you about what you’re looking for, your business’ income, and how Citizens Bank can help you achieve the goals you’re thinking about going after.
Next, you’ll provide documentation, such as your personal and business tax returns, as part of an application package. To get approved, you’ll need to show you have either a profitable business or a solid startup idea, and the personal creditworthiness to back it up.
Underwriting only takes a few days, and the decision on your loan comes within three to four business days. Once you’re approved, you’ll be contacted by a Business Banking Operations closer to coordinate the finalizing of your loan and disbursement of funds.
Anytime you’re looking at a credit product, it’s a risk. Sometimes businesses fail or don’t perform as expected. Having a business loan or line of credit can be problematic if you find yourself unable to make the payments, and for small business owners that’s even more risky since your personal finances are sometimes tied up in your business.
In addition, some variable interest rates can end up being quite expensive as the Prime Rate constantly fluctuates. Depending on the market, you could end up with a fairly high rate later in your loan term.
Is It Worth It?
If you’re a small business owner, then you’re already someone with the courage to take risks. That means you’re also probably aware of all the potential downsides of a small business loan. If you have a solid business plan and the ability to do what it takes to make your business work, however, then a small business loan could be just the ticket to an even more successful venture.
To find out more, check out Citizens Bank and set up a consultation with one of their business bankers. You might only be a few days away from the next step in growing your business.4.26 Citizens Bank Small Business Financing