Truist Business Loans Review
 |
|
Pros and cons of Truist
Pros
- No minimum time-in-business or annual revenue requirements
- Wide suite of traditional lending products
- More than 100% financing available for auto, commercial vehicle and equipment loans
Cons
- Relatively small loan amounts compared to other traditional lenders
- Lack of transparency about rates and minimum credit score requirements
- Doesn’t offer SBA loans
- Must complete loan closing at a local branch
Truist small business loans review
Truist is one of the largest banks in the country, offering a variety of lending options — particularly for smaller or newer businesses. While many lenders require at least two years’ time in business, even brand-new businesses can qualify with Truist for term loans of up to $25,000 with the right credentials.
However, you’ll need to live near a Truist branch in order to complete your loan closing in person, and they’re mainly based in the South. Truist has locations available in Alabama, Florida, Georgia, Kentucky, Maryland, New Jersey, North Carolina, Pennsylvania, South Carolina, Tennessee, Texas, Virginia, West Virginia and Washington, D.C. In addition, Arkansas and Mississippi each have one branch near the Tennessee border, while Indiana and Ohio each have one branch near the Kentucky border.
- Borrowers who need relatively small amounts. Maximum loan amounts are capped at $250,000 at Truist — you won’t be able to borrow millions.
- Business owners who want to work with a traditional bank. With Truist, you’ll find a wide selection of traditional lending products and small business solutions, like business banking, employee benefits, insurance and merchant services.
Truist small business financing at a glance
Truist doesn’t share information on their interest rates — in order to find out what rate you’ll qualify for, you need to contact a branch directly.
| Product | Loan amounts | Repayment term | Estimated APR range | Fees |
|---|---|---|---|---|
| Term business loan | Up to $100,000 | Up to 60 months | Not shared publicly | No origination fees for loans of $50,000 or less. $100 or 0.50% origination fee (whichever is more) for loans over $50,000. Other fees and closing costs may apply. |
| Secured business loan | Not disclosed | Not disclosed | Not disclosed | Not disclosed |
| Unsecured line of credit | Up to $100,000 | 12 to 36 months | Not disclosed | Not disclosed |
| Secured line of credit | Up to $250,000 | 12 to 60 months | Not disclosed | Not disclosed |
| Small business auto loan | Up to $250,000 | Up to 75 months | Not disclosed | Not disclosed |
| Small business vehicle and equipment financing | Up to $250,000 | Up to 84 months | Not disclosed | Not disclosed |
| Small business real estate loan | Up to $250,000 | Up to 180 months | Not disclosed | Not disclosed |
Term business loans
Truist offers two types of business term loans, secured and unsecured. Unfortunately, it doesn’t publicly provide details about how its secured business loans work — instead, you’ll need to inquire at a local branch for more information on rates, terms and required collateral.
Truist is more upfront with details for its unsecured business loans. Newer businesses that are less than two years old are limited to borrowing $25,000 and go through a more thorough underwriting process. All businesses are limited to borrowing up to two months’ worth of gross revenue, with a maximum loan amount and term length of $100,000 and 60 months, respectively.
If you borrow $50,000 or less, you won’t pay any origination fees or need to show any financial statements. For loans above this amount, you’ll pay either $100 or 0.50% of your loan amount (whichever is higher) and go through more extensive underwriting.
Lines of credit
Truist also offers secured and unsecured business lines of credit. While unsecured lines of credit max out at $100,000 with terms of up to 36 months, you can get a secured line up to $250,000 with terms of up to 60 months. Both options allow you to draw funds by writing paper checks or transferring money from your line of credit into your business checking account.
Small business auto loans
Truist offers small business auto loans with 110% financing available. The extra 10% can finance what are known as soft costs — this includes things like equipment add-ons, delivery fees, taxes and tag and licensing costs, as deemed appropriate by Truist bankers. Some soft costs, like maintenance contracts or extended warranties, aren’t eligible for financing. Loan amounts range up to $250,000, with terms of up to 75 months.
Small business vehicle and equipment financing
Commercial vehicle and equipment loans also come with 110% financing available at Truist. The extra 10% can cover the same soft costs as auto loans. However, it’s important to note that soft costs can only be financed for passenger and commercial vehicles, as well as agricultural and construction equipment. That means you’re limited to 100% financing for items like restaurant or medical equipment, and you’ll need to pay for delivery, taxes and other charges another way.
Loans are available for up to $250,000 with terms of up to 84 months.
Small business real estate loans
Truist offers real estate investment loans to small business owners who want to buy or refinance one- to four-unit properties. Truist does not fund construction loans for new locations. The loan-to-value ratio can be up to 85%, with a maximum loan amount of $250,000 and a repayment term of up to 180 months.
Truist doesn’t mention the closing costs involved, but they typically include things like:
- Title insurance premiums
- Attorney fees
- Appraisal fees
- Flood certification
- Recording fees
With a residential loan, you will be paid in full at the end of your up-to-15-year term. But for commercial loans, you might be able to get an amortization period of up to 25 years, which means it’s a balloon mortgage. At the end of your 15-year term, you’ll still owe 10 years of payments, which you can pay all at once or refinance through Truist or another lender.
Truist borrower requirements
| Minimum annual revenue | None, but additional restrictions apply to smaller businesses |
| Minimum time in business | None, but additional restrictions apply to newer businesses |
| Minimum credit score | Not publicly shared |
Truist works with each small business individually to determine if it’s in strong enough financial standing to qualify for a small business loan. Because of this, it doesn’t have explicit minimum annual revenue or business history requirements. However, startups with less than two years in operation and smaller businesses might have to submit additional paperwork during the underwriting process and be subject to smaller potential loan sizes.
For businesses needing loans larger than $250,000, Truist does have a separate suite of commercial lending products if you generate at least $2 million in annual revenue.
Required documents
If you’re ready to apply for a small business loan, Truist accepts applications online, over the phone or in person at a local branch. You will, however, need to complete the closing process at a local branch location if you’re approved.
Gathering the following business loan documents in advance can help speed along your application process:
- Basic info about your business and its operations
- Your name, address, phone number and Social Security number
- Two years of employment history and addresses
- Information regarding your personal income, debts and business taxes
- Information about your collateral, if applicable
- Name and contact information for any co-borrowers, guarantors or anyone who owns a 20% or more stake in the business
Remember, if you’ve been in business for less than two years, there may be additional paperwork requirements.
Alternatives to Truist
| Truist | PNC | U.S. Bank | |
|---|---|---|---|
| Minimum credit score | Not disclosed | Not disclosed | Not disclosed |
| Loan products offered |
|
|
|
| Starting APR | Not disclosed | Not disclosed | Not disclosed |
| Maximum loan size |
|
|
|
| Minimum annual revenue | No specific minimum | Not disclosed | Not disclosed |
Truist vs. PNC
If you want access to more capital, PNC could be a better fit for your business, as it has an SBA loan program providing up to $5,000,000 in funds. However, new companies looking for a startup business loan might have better luck with Truist, since there isn’t a set minimum time-in-business requirement. In contrast, PNC typically requires at least two years of business history to qualify for small business financing.
And while both lenders don’t publicly disclose their business loan interest rates, each bank’s rates will likely be competitive, since traditional banks are known to offer lower rates than alternative online lenders.
Truist vs. U.S. Bank
Truist and U.S. Bank both offer similar borrowing limits when it comes to their term loans and lines of credit, but U.S. Bank wins if you need a larger equipment loan ($2,500,000 versus $250,000, respectively). U.S. Bank also offers special rates, faster underwriting and relaxed requirements for minority business owners through its Business Diversity Lending Program.
In addition, U.S. Bank is a better choice if you want to complete the loan process online from start to finish. You can sign the closing documents from anywhere, whereas Truist requires you to close on your loan in person. And with roughly 2,000 branch locations that are only available in the Southeast, Mid-Atlantic and Texas, that leaves a large portion of the country unable to access Truist’s small business loans.
Compare business loan offers