A personal loan is frequently one of the simplest ways to obtain finances for a variety of personal requirements. Perhaps more crucially, you don’t have to put up any collateral to acquire this loan, and you have virtually no restrictions on how you can utilize the funds. Borrowing money, however, comes with a price tag in the shape of interest payments, processing fees, documentation fees, and so on. As a result, being able to evaluate the best personal loan deals on the market can assist you in making an informed decision.

Furthermore, banks provide loans to people all throughout the United States on a regular basis. Banks, for example, finance almost 85 percent of new cars and about 56 percent of secondhand cars.

With that in mind, it’s clear that these lenders play a crucial role in our daily lives. And this power is just expanding as bank assets have expanded dramatically in the last decade.

For existing clients with good credit scores, bank loans can have low rates and large borrowing amounts. Wells Fargo is the best big bank and offers numerous payback plans.

A bank loan is a form of loan provided by a bank and can be used for a variety of purposes, including financial emergencies, big expenses, and credit history building. The majority of bank loan approvals are based on your complete financial profile, which includes your credit score.

The best bank loans will have a low annual percentage rate (APR), flexible repayment options, and minimal expenses. They will also give friendly and accessible customer support representatives, as well as a streamlined and quick application process.

Some bank loans have low interest rates and large maximum loan amounts, such as $100,000. Others provide lengthier payback durations of up to 84 months as well as more flexible repayment plans. Overall, we suggest Wells Fargo to anyone looking for a bank loan. The organization has a good reputation, a long history in the sector, and a wide range of loan options with different conditions. Additional financial services and in-branch help are also available.

Furthermore, some banks have a nationwide presence with thousands of branches, and others are smaller regional or community banks.

With that in mind, the top banks for small business loans are listed below:

1. Wells Fargo & Company

Wells Fargo bills itself as “America’s #1 small business lender,” and its track record backs up this claim. Wells Fargo is an excellent bank to work with if you need funding because it offers a range of various financing options and has years of experience in the small business lending market. Wells Fargo had a commercial loan balance of more than $170 billion as of September 2020.

Wells Fargo offers a variety of business loans, but the Unsecured Business Line of Credit is the ideal option for small business owners. This Wells Fargo business loan is easier to qualify for because it is unsecured, which means you don’t have to provide physical collateral.

2. Bank of America

Another bank that is going to considerable efforts to gain the loyalty of small company owners is Bank of America. Bank of America had about $290 billion in outstanding commercial loans in the United States as of September 2020.

Bank of America is a good alternative for small company owners around the country, with roughly 4,400 branches and robust mobile banking features. For highly qualified borrowers, Bank of America business loans are an excellent option.

You can apply for a loan online, in person at a branch, or by phone. If you’re approved, you might have money in as little as five days.

Bank of America, on the other hand, makes the qualification requirements available on their website. Businesses must be at least two years old and have annual revenues of $100,000 or more to be eligible. Bank of America has a relationship rewards program that allows you to obtain a lower rate if you keep high balances across all of your Bank of America accounts.

3. JPMorgan Chase & Co.

JPMorgan Chase is the next significant national bank on our list. Chase had over $190 billion in commercial loan volume as of September 2020, and the bank loaned over $12 million in SBA loans alone throughout the year.

For two reasons, Chase joins our list of the best banks for small business financing. For starters, Chase provides a wide range of lending alternatives, including lines of credit and SBA loans, as well as equipment and real estate finance.

4. Capital One

Despite the fact that Capital One is best recognized for its consumer services, the bank has made significant investments in its small business lending program. In fact, they awarded over $20 million in SBA loans in 2019.

Capital One stands out as a top bank for small business loans simply because of the variety of small business loans it offers. Lines of credit, equipment and vehicle finance, commercial real estate loans, company installment loans.

Existing customers of Capital One small business loans may qualify for relationship-based pricing, and your business’s financing needs may be tailored to a specialized loan package. Capital One is the finest bank for business loans if you already have a relationship with them because of their customizability.

These bank loans for small businesses start at $10,000 and allow for an unlimited number of withdrawals. There is no set term for repaying your line of credit, nor is there a limit on how long you can keep it open.

Plus, if you’re taking up a line of credit worth less than $50,000, you won’t have to submit financial statements, making the application process much easier.

These loans, according to Capital One, are ideal for business owners that require a flexible financing option to help with day-to-day cash flow concerns. To be eligible, you must have been in business for two years and have (or open) a Capital One business checking account.

5. U.S. Bank

The best national banks are rounded off by U.S. Bank. This bank is one of the largest small company loan lenders (about $74 million in SBA loans granted in 2020), but its geographic reach is limited. Only 25 states have US Bank branches, most of them are in the west and midwest.

Term loans, lines of credit, equipment finance, and commercial real estate loans are all available through US Bank. One feature that sets them apart is that they provide “practice finance,” which enables dentists, veterinarians, and eye physicians to start, acquire, or expand their practices.

The Quick Loan for Business is one of US Bank’s greatest solutions for small business owners. This is for business owners who wish to buy new or old equipment, or who need working money to expand their company. Loans of up to $250,000 are available, with repayment terms of up to seven years. There are no origination costs on these loans, and the interest rates and monthly payments are fixed.

How to Get a Business Loan from a Bank

Small company bank loans, as we’ve already discussed, feature low interest rates, long durations, and manageable monthly payments, but they’re not for everyone. You must have very solid personal and business finances to qualify for a bank loan.

Top small company loan lenders will check for the following requirements to assess your eligibility:

• Credit Card

Good Personal Credit Surprisingly, business loans from banks will require a good personal credit score. If you’re searching for a business loan, you might be asking why your personal credit score matters. Business lenders, including commercial loan agencies and banks, will use personal credit scores to assess a business owner’s financial responsibility. After all, you’re the one in charge of your company’s finances.

As a result, to qualify for a company loan from one of these top lenders, you, or any of your co-owners, will almost certainly need a FICO score of at least 700. For you to qualify for a top business loan, you may need to have great personal credit (think 750 or better). This is especially true for small enterprises that are newer or have a lesser volume of sales.

• A Proven Business Record

For the period your organization has been up and functioning, the best banks for business loans will have a minimum threshold. Most business bank loans will require you to have been in business for at least six months before you can apply. Even so, to be approved for a bank loan, you’ll need very strong business financial records and personal credit.

Your application for a small business loan from a bank will be considerably stronger if you have been in business for at least two years. If your company has been in operation for at least two years, any bank you approach will be more willing to offer it money.

• Annual Revenues in Millions

The top banks for small business loans will not provide money to your company if they don’t believe you’ll be able to repay it. As a result, a bank business loan will only be available if your company generates a significant quantity of revenue on an annual basis.

For most top business loan lenders, you’ll need at least $100,000 in annual revenue to be considered. The more money you bring in, the better.

Furthermore, the best banks for business loans will frequently prefer that your company is profitable. Before you apply, double-check that you meet all of the lender’s revenue and profitability requirements.

Keep in mind, however, that the information you’ll need to prepare for your application for one of these small business bank loans is highly dependent on the bank with which you’re dealing. Some banks may have additional requirements for business loans.

However, you can be certain that you will need to prepare some form of the following list in general.

• Personal background/resume for anybody owning 20% or more of the company
• Business strategy
• Personal and business tax returns
• Financial statements
• Bank statements
• Use of loan statement
• Debt schedule
• Statement of collateral (licenses, registrations, articles of incorporation, etc.)