Whenever we think of taking a loan, the first place that comes to our mind is the bank. Because we consider this option as one of the best options, as there is no risk of anything, and this is a legal process. Bankers take your documentation and guarantee that you get the total loan amount. In this piece of writing, we will discuss the Best Banks for Small Business Startup Loans.
First, we all know that there are various types of loans available for borrowers, but if you are a startup, you should choose startup loans. The second thing is where you can apply for a loan, in which you must repay the loan amount quickly and don’t have to worry about the interest rates.
So, if you are going through any of these situations and looking for a bank, BitX Funding can help you. This will help you to decide on the right banks so that you can apply directly to that bank. But the important thing is to understand the bank’s policy before applying for a loan.
The Best Banks for Small Business Startup Loans
We have put together each detail of the banks for your ease. Undoubtedly, the banks differ in their procedures, interest rates, repayment time, and customer service. There are some banks that have a national area while others hand, while others are smaller and regional banks.
So, let’s jump right into it and explore more about these banks.
Bank of America
Bank of America is one of the great options for Small Business Startup Loans for two main reasons. First, they have branches throughout the country, and second, they are willing and committed to serving small and startup businesses. In September 2020, Bank of America had over $290 billion in U.S. commercial loans.
So, if you are a highly qualified borrower, this is a solid option for you. Bank of America offers unsecured term loans. The most extensive amount ranges from $10,000 to $100,000, but the interest rates for these loans are fixed, starting from 4.75%.
These loans are also medium-term loans, and you can repay the loan amount in one to five years. Moreover, you can apply online or visit the branch. If the bank approves your request, you will get the desired money in five to six business days. All the details of their qualification are on their website. But they give loans to those businesses that have spent at least two years in the market.
However, these businesses should generate $1000,000 in annual revenue. Do you want to know the benefit of getting a loan from this bank? You can get a lower rate if you maintain the balance across the Bank of America accounts.
Wells Fargo
Wells Fargo is all about the Small Business Startup Loans. They have set themselves a goal of $100 billion loaned to businesses with less than $20 million in revenue over five years. The best thing is that they offer excellent services to entrepreneurs and make a perfect stop for them if you are looking for a business loan.
They offer both unsecured and secured business lines of credit. Unsecured simply means that you don’t have to give your essential asset collateral. Wells Fargo is a great bank to borrow money, with various financing solutions and decades of experience in the small business lending process.
This offers several types of business loans, but Well Fargo’s unsecured business line of credit is a solid option for small and startup business owners. You don’t have to give collateral for this loan, which means you can get this loan quickly, and thus it is one of the most accessible options for you
You get a credit line of $5,000 to $100,000 to cover your business expenses or purchase any equipment. Since this line of credit is revolving, thus, the line replenishes every time you pay back the balance in full.
Capital One
There is no doubt that Capital One is on the top of the best banks from where you can get Small Business Startup Loans. This is known for its best consumer programs, as this bank has invested in its small business funding programs. This bank has granted $20 million in SBA loans.
The bank stands out in the crowd because they offer a large variety of small business loans to its customers. This offers lines of credit, vehicle and equipment purchasing, SBA loans, commercial loans, and the best business instalment loans. This bank also comes with relationship-based rates for its existing customers.
In addition to this, this bank also offers loans according to your requirement and the financial needs of your business. This customization of the loans makes this bam the perfect option for most borrowers if you have a relationship with them. So, Capital One is a smaller, more flexible bank that offers the best loans.
Its loans start at $10,000 and permit you unlimited draws. Moreover, there is no specific time for the line of the credit repayment period or for how long you want to have the line of credit open.
Generally, this bank calls for those business owners who require flexible financing tools to solve all of their cash issues. But, to qualify for these loans, you have two years in the market or just have one Capital One business account.
U.S. Bank
U.S. Bank is one of small startup business owners’ most prominent lending options. But this bank has a small or limited geographical reach. It only has 25 states, but it focuses on the country’s west and the Midwest.
It gives loans that range from term loans, equipment financing, commercial estate loans, and lines of credit. One thing that makes this bank different from others is that they offer practice financing. If I put it in simple words, it helps dentists, eye doctors, and veterinaries take their first step to practice or expand their business.
One of their best loans is the Quick Loan for Business. This loan is for businesses that want to buy new or used equipment or need a vital source for their business expansion.
These loans go up to $250,000, and you can repay the loan for up to seven years. So, why do they call it quick? It simply means that these banks provide simple application procedures and fast credit approval. This bank offers loans with fixed interest rates and monthly payments.
JPMorgan Chase
Another popular bank for small startup business loans is JPMorgan Chase. It had over $190 billion in commercial loan volume, and in an entire year, this bank loaned around $12 million in SBA 7(a) loans.
Why should we consider this bank for our loans? First, Chase offers a wide variety of lending options, from lines of credit to real estate financing, SBA loans, and equipment financing. Secondly, if traditional bank loans do not make sense for business owners, they can get loans.
Their funding starts from $5000. You must repay the loan amount for up to seven years, but you should keep in mind that the monthly repayment amount is fixed. So, make sure you know the criteria before applying.
But the best thing is that their interest rates are either fixed or variable. And they will automatically deduct the loan amount from your bank. So you don’t have to worry about the payment.
Chase is one of the leaders in credit cards. Do you want to know why? Because they offer one full year as an introductory rate as several of their cards before they set your variable rates. So, they provide different types of loans to borrowers.
So, this is the top list of the banks from where you can get your loans.
A Quick Wrap-Up!
We have mentioned all the banks and their details above to read and get all the information about them. If you want help and need more information, BitX Funding is the best financial company to help you. We have financial experts who help you, listen to your ideas and requirements, and suggest the best loans. We also guide you about the Best Banks for Small Business Startup Loans so that you have a complete idea of where to apply for the loan. It will make your process easy and won’t take much time.
