TD Bank Business Loans Review
8.74% for lines of credit, not disclosed for term loans Based on the current prime rate of 8.00% + 0.74% added by TD Bank
$10,000 to $1,000,000
Not disclosed
Not disclosed
Pros and cons of TD Bank
| Pros | Cons |
|---|---|
| SBA-Preferred lender No loan limit for first mortgages through SBA 504 loan program Offers a wide array of business products, including term loans, lines of credit, SBA loans, bank accounts, credit cards and more | You must apply in person for loans over $250,000 Requires automatic payments from a TD Bank Business Checking account Only available in a few states Connecticut., District of Columbia, Delaware, Florida, Massachusettts, Maryland, Maine, North Carolina, New Hampshire, New Jersey, New York, Pennsylvania, Rhode Island, South Carolina, Virginia and Vermont |
TD Bank small business loans review
TD Bank operates in the United States as a subsidiary of the Canadian banking giant, TD Bank Group. It’s the ninth-largest bank in America with over 1,100 locations — quite impressive considering that it only operates in 16 states and territories along the East Coast. This makes it a solid choice for East-coasters who prefer banking in person.
It’s unfortunately tight-lipped about the details of its small business financing products, although it does offer a few of the most popular choices, including business term loans, SBA loans and lines of credit. It also offers other business products, including checking accounts, credit cards and merchant services.
Who is TD Bank for?
- Established TD Bank Business customers. While not a requirement to apply for a loan, some products — notably the line of credit — require you to have a minimum balance of $40,000 in a TD Bank Business Checking account.
- East Coast business owners. You can only apply for TD Bank business financing if you live in one of these states: Connecticut., District of Columbia, Delaware, Florida, Massachusettts, Maryland, Maine, North Carolina, New Hampshire, New Jersey, New York, Pennsylvania, Rhode Island, South Carolina, Virginia and Vermont.
- You prefer working with a bank. There are many online small business lenders, but only a few of them are banks. Getting a business loan from the same place you do your banking can simplify things since everything will be done in-house.
TD Bank small business financing at a glance
| Products | Loan amounts | Repayment term | Estimated APR range | Fees |
|---|---|---|---|---|
| Term loan | $10,000 to $1,000,000 | 12 to 60 months | Not disclosed | Not disclosed |
| Line of credit | $25,000 to $500,000 | Not disclosed | 8.74% Based on the current prime rate of 8.00% + 0.74% added by TD Bank | Not disclosed |
| SBA 7(a) loans | Up to $5,000,000 | Up to 25 years | Rates vary, subject to SBA maximums | Not disclosed |
| SBA 504 loans | No maximum loan amount for first mortgage; up to $5,500,000 for second mortgages | Up to 20 years | About 3% of the debt financed Based on SBA guidelines | Not disclosed |
Term loans
Some lenders place a big emphasis on parsing their loans out among different types — like equipment loans, which are secured by the equipment you’re buying (similar to a car loan), and unsecured loans.
TD Bank offers both types but doesn’t distinguish much between the two, only saying that most loans are “typically secured by equipment, inventory or cash.”
However, TD Bank offers both short-term loans and long-term loans, up to 60 months in length.
Line of credit
TD Bank also generally requires collateral for its business lines of credit in the form of accounts receivable (similar to accounts receivable financing) or as cash. You’ll also need a TD Bank Business Checking account with a $40,000 minimum balance in order to be approved, unlike for its business loans.
You can draw against your line of credit with an online transfer or by writing a check. TD Bank may also offer the option for interest-only payments for a time, so be sure to inquire about your contract if that interests you.
SBA 7(a) loans
As an SBA Preferred lender, TD Bank has more authority to make lending decisions on its own, which results in a faster response for you, the borrower.
TD Bank requires a 10% minimum down payment with the popular SBA 7(a) loans, and you can use funds for a wide range of purposes including buying equipment, hiring new workers, buying real estate and more.
SBA 504 loans
For larger purchases, like a significant real estate or equipment investment, TD Bank also offers SBA 504 loans. You can use the property you’re buying as collateral for the loan, and there are no loan limits if you’ll be purchasing your first business property. Like the SBA 7(a) loan, you’ll also be required to make a minimum down payment of 10%.
TD Bank borrower requirements
| Minimum annual revenue | Not disclosed |
| Minimum time in business | Not disclosed |
| Minimum credit score | Not disclosed |
Unfortunately, TD Bank doesn’t provide many of the important details about what requirements you’ll need to meet in order to get approved for a business loan. Typically, you’ll need good credit, a demonstrated track record for your business and a strong income to be approved for most business loans.
TD Bank does provide a few details about its business financing requirements, however:
- You’ll need a 10% down payment for SBA loans.
- You’ll need to sign up for autopay for business loans and lines of credit.
- You can apply online for financing amounts under $250,000, but for amounts above that you’ll need to apply in person.
- You’ll need a TD Bank Checking account with a minimum balance of $40,000 if you’re applying for a business line of credit.
- You’ll need to sign a personal guarantee.
Required documents
TD Bank is pretty open with what documents you’ll need to apply for a business loan. Here are some of the things you’ll need, but keep in mind that depending on your situation TD Bank might request other documents too:
- Copy of your government-issued ID
- LLC operating agreement, if applicable
- Partnership banking agreement, if applicable
- A copy of the minutes from your business’s last meeting or your bylaws
- Most recent tax return, if you’re requesting a loan between $100,000 and $250,000
- Personal authorization form from any business owners with more than 10% equity in the company
Alternatives to TD Bank
| Detail | TD Bank | OnDeck | Capital One |
|---|---|---|---|
| Minimum credit score | Not disclosed | 625 | Not disclosed |
| Loan products offered |
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| Time to funding | Not disclosed | Same business day | Not disclosed |
| Starting rates | Not disclosed | 27.30% Minimum APR offered to at least 5% of customers (not the lowest rate offered) | Not disclosed |
| Maximum loan size | No loan limit for first mortgages taken out with an SBA 504 loan |
| Up to $5,000,000 |
| Minimum annual revenue | Not disclosed | $100,000 | Not disclosed |
TD Bank vs. OnDeck
OnDeck is a typical online small business lender that offers quick funding (as soon as the same day) but also has significant costs (average APRs for term loans and lines of credit are 56.1% and 55.9%, respectively).
However, OnDeck is much more widely available than TD Bank. You can apply online from any state except for North Dakota, where it doesn’t offer funding.
TD Bank vs. Capital One
If you want to stick with a traditional bank, another good choice is Capital One. You can apply for business loans at a branch location, though locations appear to be concentrated in New York, New Jersey, Maryland, Virginia, Louisiana and Texas.
Capital One was the top-ranked bank in J.D. Power’s 2023 survey of overall customer satisfaction for small banking, outranking TD Bank, which was ranked 12th.
Although Capital One is also tight-lipped about its requirements, you’ll need at least two years in business and a business bank account to qualify for its products.