PNC Bank Business Loans Review
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Pros and cons of Bank
Pros
- Relatively large loan amounts, especially when collateral is provided
- Wide range of lending products, including multiple types of SBA loans
- Over 2,000 in-person locations
Cons
- Doesn’t disclose rates, making it difficult to compare with other lenders
- Doesn’t list most fees, making it challenging to calculate total loan costs
- Doesn’t disclose minimum credit score and annual revenue requirements
Bank business loans review
lending products include term loans, lines of credit, equipment financing and more, with loan sizes reaching as high as for corporate clients. However, most of
- Borrowers with an excellent credit report.
Bank small business financing at a glance
| Product | Loan amounts | Repayment term | Estimated APR range | Fees |
|---|---|---|---|---|
| Term loans (unsecured) | months | Not disclosed | Additional fees may apply | |
| Terms loans (secured) | and up | months | Not disclosed | Additional fees may apply |
| Lines of credit (unsecured) | Revolving | Not disclosed | Annual fee of $175 Additional fees may apply |
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| Lines of credit (secured) | and up | Revolving | Not disclosed | Annual fee of 0.25% of the total line of credit Additional fees may apply |
| Commercial real estate loans | and up | months (up to 25-year amortization) | Not disclosed | Additional fees may apply |
| Vehicle financing | months | Not disclosed | Additional fees may apply | |
| SBA 7(a) loans | Up to | Up to months | for variable-rate loans | Additional fees may apply |
| SBA 504 loans | Up to $5 million or , depending on the loan purpose | Up to months | About Based on SBA guidelines | Additional fees may apply |
| SBA Express Lines of Credit | Up to | months for revolving line of credit, followed by months for term loan | for variable-rate loans | Additional fees may apply |
| Corporate and institutional loans | Up to or more | Not disclosed | Not disclosed | Not disclosed |
Term loans
— between . But while doesn’t share its rates publicly, interest rates on unsecured term loans tend to be higher than those offered on secured term loans.
You may need a secured term loan if you need to borrow more than , which typically offers longer terms of up to months but requires you to pledge collateral.
Lines of credit
Like a credit card, a business line of credit allows you to borrow money when needed, only charging interest on the withdrawn amounts. This is a great option for covering day-to-day working capital expenses like payroll, inventory, marketing campaigns and more. requires interest-only payments on any amount owed on a monthly basis. It’s wise, however, to make principal payments as quickly as possible to minimize your total interest charges.
Vehicle financing
You can borrow anywhere from for a commercial or fleet vehicle with , financing up to 100% of the vehicle costs. Loan terms can range from months. And while doesn’t publicly share rates on any of its products, its business auto loan interest rates are fixed with monthly payments deducted from your business checking account.
Commercial real estate loans
commercial real estate loans require owner-occupied commercial real estate as collateral. You can borrow months, amortized up to 25 years. If you have an amortization period longer than your loan term, you may be able to refinance at the end of your loan term. If you cannot, a balloon payment will be due at the end of the loan term.
SBA 7(a) loans
SBA 7(a) loans are notable for their generous repayment terms and comparatively low-interest rates. The maximum SBA 7(a) loan size at is . is charged annual and guaranty fees between 0% and 3.75%, and it may pass the guaranty fees on to you as a consumer.
may also charge a prepayment penalty if your term is more than 15 years and you pay off more than 25% of the loan balance within the first three years of loan disbursement. Maximum loan terms are only 120 months, unless you’re borrowing for real estate needs — then, the term can extend up to months.
SBA 504/CDC loans
SBA 504/CDC loans are typically used for commercial real estate needs, heavy equipment, construction, major renovations or business debt refinancing. The maximum amount on these loans tends to be $5 million unless you’re working on an energy-efficient or manufacturing project. Then, the maximum loan can go as high as .
SBA Express Lines of Credit
One downside of most SBA loans is that the approval and funding timeline can take 30 to 60 days, or even longer. SBA Express loans expedite that process, enabling the SBA to respond to your application within 36 hours. But in exchange for a faster turnaround time, maximum loan sizes are at , and collateral may be required for amounts above $50,000.
While passes along guaranty fees to borrowers on SBA Express Lines of Credit, these fees can be waived for veteran-owned businesses.
Corporate and institutional loans
Larger companies seeking large loans to finance acquisitions, expansions and other high-growth situations may be able to receive as much as (or more) with corporate and institutional lending options. These options include term loans, lines of credit, equipment financing solutions and commercial real estate loans.
To qualify for commercial banking, businesses will need annual revenues above $5 million. Plus, corporate products are reserved for companies making over $50 million a year.
Bank borrower requirements
| Minimum annual revenue | Not disclosed |
| Minimum time in business | 2 years in most cases |
| Minimum credit score | Not disclosed |
For most business lending products, says that it wants to see “upward or stable trends” in terms of revenue, and your Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) should be more than the projected principal and interest payments on the loan.
Required documents
When you apply for a business loan with , make sure to have the following information and required documents on hand:
- Business name and address
- Business type and year established
- Business tax ID number or EIN number
- Annual sales
- Number of employees
- Most recent business tax return
In addition, you’ll need the following information for each owner of the business:
- Home address
- Social Security number
- Title
- Ownership percentage
- Personal financial and historical information
- Most recent personal tax return
If you’re applying for a loan that requires collateral, you’ll also want to include any information about the collateral in your loan application.
Alternatives to Bank
| Bank | |||
|---|---|---|---|
| Minimum credit score | Not disclosed | Not disclosed | Not disclosed |
| Loan products offered |
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| Starting APR | Not disclosed | Not disclosed | Not disclosed |
| Maximum loan size |
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| Minimum time in business | 2 years | 3 years | None, but extra paperwork is required for businesses with less than 2 years in business |
| Minimum annual revenue | Not disclosed | Not disclosed | None |
It’s common for well-established traditional banks not to disclose rates or specific underwriting requirements. Unfortunately, this lack of information makes it hard to adequately compare similar loan products before applying. That said, let’s look at how stacks up against the competition across the available metrics.
Bank vs.
and offer similar loan products, such as business term loans, lines of credit, commercial real estate loans and SBA loans.
If your business needs access to more funds, an SBA 504 loan from could provide up to — although its SBA loans are only available in 17 states. And if your business needs flexible cash on a revolving basis, you could also get up to with SBA Express Line of Credit.
Still, newer companies might have better luck with , since it only requires two years in business instead of three with .
Bank vs.
Furthermore, could help startups and recently established companies access the capital they need, as there’s no minimum time in business needed to apply. However, could be the better choice if you want to apply for an SBA loan.
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