Truist Review 2021 – businessnewsdaily.com
|Variety of loan types||2.0|
How much an SBA loan through Truist costs depends on several factors, including your creditworthiness and the amount you are borrowing. While the interest rate starts at only 5%, you will likely have higher interest rates if you have a low credit score.
Many of Truist’s non-SBA loans can have either fixed or variable interest rates. The fixed interest rates remain the same throughout the life of the loan, while the variable interest rates can be increased or decreased over the course of the loan.
Applying for a loan
SBA offers low interest rates and loans with a term of 25 years. This can be a lifesaver for a small business in need of funding as the payments are small and manageable in the long run.
To get an SBA loan through Truist, first contact the company. You can either call Truist directly or visit one of the branches. From there, Truist will work with you to determine which SBA loan makes the most sense for your company. This process is much more cumbersome than applying for a loan from an alternative lender like Rapid Finance. Alternative lenders allow you to complete the process online fairly quickly and often receive a funding decision on the same day. An SBA loan can take several weeks to be approved once you apply for it. This is one reason why this type of financing does not apply to all business owners.
There are several reasons to borrow money through the SBA’s loan programs. Borrowers looking to start a small business or already running a business can use these loans for working capital, buying land or equipment, doing home renovations, or refinancing debt.
You must meet several qualifications to be eligible for SBA loans:
- You need to be in a for-profit business.
- You must have a net worth of less than $ 15 million.
- Your business must have an average net income of less than $ 5 million.
- You must have adequate equity invested.
- For some of its loans, you have to try to get a loan elsewhere first.
- The funds must be used for solid business purposes.
- You must not default any existing debt to the US government.
Loan types and terms
Truist offers three types of SBA loans: 504 loans, 7 (a) loans, and SBA Express loans. Since the SBA supports the majority of these loans, banks like Truist can offer very flexible terms and affordable interest rates. That goes for any SBA lender, but Truist has years of experience over some of its competitors.
- The SBA 504 loan is designed for long-term borrowers who need cash for construction, real estate, or startup costs. The maximum loan period is $ 10 million. The term can be up to 25 years.
- An SBA 7 (a) loan allows you to borrow up to $ 5 million and repay over a period of five to seven years. It is for working capital, inventory, and other business purposes. The terms for real estate, investment and equipment loans differ.
- The SBA also offers express loans and lines of credit that offer faster funding and less paperwork. These loans are capped at $ 250,000.
If you find that an SBA loan is not for you, Truist has other loan options. It offers fixed and variable rate loans with flexible repayment plans. Truist’s equipment finance loan has low to no closing costs and gives you the option to purchase the equipment at the end of the lease. It also offers lines of credit.
No collateral is required for SBA 7 (a) loans less than $ 25,000. If the loan is more than $ 350,000, the SBA wants the lenders to secure as much as possible. There are no collateral requirements for the SBA Express loans.
Did you know already? The interest rate on SBA loans starts at 5% and the term can be up to 25 years. Your credit score determines the rate you pay.
Try to collect as much documentation as possible to streamline the application process. Truist will work with you to gather all of the documentation. This is another reason we like this lender. The better prepared you are, the faster the process will be.
|SBA Preferred Lender designation||Truist has proven they have the expertise to provide SBA loans and have earned the SBA’s seal of approval.|
|Flexible terms||Since the SBA supports most loans, Truist can offer flexible interest rates.|
|Variety of loan types||Outside of SBA loans, Truist offers lines of credit, term loans, and equipment finance.|
SBA Preferred Lender
Truist, the combination of SunTrust and BB&T, has extensive experience in providing SBA loans to small business owners. It has earned the commendable SBA Preferred Lender award, which means that Truist understands how these loans work and is committed to helping borrowers get the best terms and conditions. Because the SBA application process is so extensive, you need a credit partner who has seen the good and the bad to make sure you are taking all the right steps.
SBA loans offer very flexible terms, making the payments for small business owners manageable. Depending on the loan you are applying for, the term can be five to 25 years. This level of flexibility is crucial, especially when you take out a large loan that is difficult to repay in a short period of time.
Variety of loan types
You may think you want an SBA loan but change your mind during the process. This is not a problem with Truist. In addition to three types of SBA loans, Truist offers a variety of other loan products including term loans and lines of credit. This variety can be appealing to companies who may not be sure which financing option is best for them.
Truist provides customer service by phone, email and in its branches during normal business hours. It has an A + rating from the Better Business Bureau and has been accredited since 1967.
We think it’s good that this lender offers plenty of guidance, whether in person or over the phone. Applying for an SBA loan can be a tedious task, so any help a business owner can get is appreciated.
The biggest drawbacks to SBA loans are the application process and the time it takes to get funding. The application is long and involves a lot of paperwork. It may take weeks from approval for funds to be deposited into your bank account. A mistake here or there can slow the process down considerably.
If you are an established business owner who could otherwise obtain credit, you are not eligible for an SBA loan. The SBA requires its lenders, including Truist, to perform a “loan elsewhere” test that shows whether an applicant can obtain affordable funding from non-state sources.
Tip: SBA loans are very bureaucratic and can take some time to complete. To speed this up, collect as much paperwork as you can in advance.
Truist is a small business lender with a long history of providing SBA loans and helping borrowers with the process.
We recommend Truist for:
- Companies that want long repayment terms and affordable interest rates
- Companies that don’t need the money right away
- Companies that feel comfortable in a lengthy application process
We do NOT recommend this lender for:
- Companies that need an easy online application process and quick funding
- More than $ 5 million worth of businesses