Capital One Business Loans Review
Not disclosed
Up to $5,000,000
Two years (no time-in-business requirement for SBA loans)
Not disclosed
Pros and cons of Capital One
| Pros | Cons |
|---|---|
| SBA Preferred lender Full-service financial institution High customer satisfaction ratings Several financing options available | Need to apply in person at a branch Not openly transparent with financing details Must have been in business for at least two years Branch locations are sparse and mostly on the East Coast |
Capital One small business loans review
Capital One is one of the largest banks in the country, by assets held, offering a plethora of bank accounts, credit cards, loans and more for individuals and small businesses. It has a great reputation for customer service even though it operates mostly online — an interesting conundrum since you can only apply for a Capital One small business loan in person.
Furthermore, Capital One provides almost no details about how its small business funding options work or even the specific options available. That makes it hard to know whether it’s the right choice for you before committing to an application. Given the number of satisfied customers, however, we think it’s worth checking your options with Capital One; just don’t forget to scout out the competition, too.
Who is Capital One best for?
- Established small business owners. You won’t be eligible for financing (aside from SBA loans) unless you’ve been in business for at least two years.
- Small business owners on the East and Gulf coasts. You’ll need to apply in person at a Capital One branch, only available in Louisiana, Maryland, New Jersey, New York, Texas and Virginia.
- Small business owners looking for a holistic banking solution. Capital One offers a full suite of business banking products in addition to its loans. Keeping everything in-house can simplify your business finances.
Capital One small business financing at a glance
| Product | Loan amounts | Repayment term | Estimated APR range | Fees |
|---|---|---|---|---|
| Real estate loans | $10,000 to $5,000,000 | Up to 240 months | Not disclosed | Not disclosed |
| Lines of credit | $10,000 to $5,000,000 | Not disclosed | Not disclosed | Not disclosed |
| SBA loans | $10,000 to $5,000,000 | Not disclosed | Not disclosed | Not disclosed |
| Medical practice loans | Not disclosed | Not disclosed | Not disclosed | Not disclosed |
| Specialized lending | Not disclosed | Not disclosed | Not disclosed | Not disclosed |
| Equipment loans | Not disclosed | Not disclosed | Not disclosed | Not disclosed |
Real estate loans
If you’re looking to purchase real estate create a storefront for your business or invest in a warehouse, Capital One can help with a real estate loan. Loan proceeds can also be used to improve your property, and you can refinance an already-existing real estate loan as well. Capital One offers real estate loans with terms of up to 240 months.
Lines of credit
For short-term borrowing needs, Capital One offers small business lines of credit for up to $5,000,000. Small business lines of credit can be handy to smooth out potential cash flow issues, take advantage of last-minute business investment opportunities, or other purposes.
SBA loans
Savvy business owners often prefer SBA loans because they come with much lower rates, given that the SBA backs part of your loan. Capital One offers many types of SBA loans, including standard SBA 7(a) term loans, high-dollar SBA 504 loans, SBA Express loans and lines of credit and more. As an SBA Preferred lender, Capital One has more leeway to approve your SBA loan application faster than other non-Preferred lenders.
Medical practice loans
Clinicians can benefit from Capital One’s medical practice loans to buy medical equipment. The loans can also be used to start and grow your medical practice. It’s a relatively niche product, but one that can be useful in the right case
Specialized lending
If Capital One doesn’t offer a financing option that seems right for you based on this list, it’s worth reaching out to a local banker to see if they can offer a custom solution. The bank offers many more products that, like the financing details for any of its other small business financing products, aren’t cataloged online. You’ll need to talk to a live banker to learn more.
Equipment loans
Capital One also offers loans to purchase equipment for your small business. It doesn’t offer up any details on how they work, however, so you’ll need to contact a local Capital One banker to learn more.
Capital One borrower requirements
| Minimum annual revenue | Not disclosed |
| Minimum time in business | Two years, except for SBA loans which have no minimum time in business requirement |
| Minimum credit score | Not disclosed |
Just like with the interest rate and repayment terms on its small business loans, Capital One is tight-lipped about what you’ll need to get a business loan. The only real criteria they’re clear about is that you’ll need to have been in business for at least two years, and you’ll need to have a Capital One small business checking account or be willing to open one.
Oddly enough for a mostly online bank, you must apply for its business loans in person, which is complicated by the fact that it only operates a little under 300 brick-and-mortar locations in a handful of U.S. states along the East and Gulf coasts. If you do happen to live near a branch, it’s worth scoping out to see what it can offer you.
Alternatives to Capital One
| Capital One | Wells Fargo | OnDeck | |
|---|---|---|---|
| Minimum credit score | Not disclosed | 680 | 625 |
| Loan products offered |
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|
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| Time to funding | Not disclosed | Not disclosed | As soon as same business day |
| Starting rates | Not disclosed | Prime + 1.75% |
|
| Maximum loan size | $5,000,000 | Up to $10,000,000 | $250,000 |
| Minimum annual revenue | Not disclosed | Not disclosed | $100,000 |
Capital One vs. Wells Fargo
If you still prefer to do your banking in person (or at least with a large bank), consider Wells Fargo small business loans instead. It has many more physical locations than Capital One, with 4,739 locations in 38 U.S. states. The only area where it’s not really available is parts of the Northeast and Midwest. However, Wells Fargo has low rankings for customer service and the Consumer Financial Protection Bureau (CFPB) has taken several disciplinary actions against the bank.
Capital One vs. OnDeck
If you’re willing to work with an online lender, OnDeck offers a refreshingly honest and simple experience for basic business financing needs. It’s upfront with what requirements you’ll need in order to qualify, including being in business for at least a year. The downside is it’s very expensive, and you may need to make weekly or even daily payments on your loan instead of the industry-standard monthly payments.