Capital One Business Loans Review
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Pros and cons of Capital One
Pros
- SBA Preferred lender
- Full-service financial institution
- High customer satisfaction ratings
- Several financing options available
Cons
- Need to apply in person at a branch
- Not openly transparent with financing details
- Must have been in business for at least two years
- Branch locations are relatively sparse
Capital One small business loans review
Capital One is one of the largest banks in the country by assets held, offering a wide variety of bank accounts, credit cards, loans and more for individuals and small businesses. It has a great reputation for customer service even though it operates mostly online — an interesting conundrum since you can only apply for a Capital One small business loan in person.
Furthermore, Capital One provides almost no details about how its small business funding options work or even the specific options available. That makes it hard to know whether it’s the right choice for you before committing to an application. Given the number of satisfied customers, however, we think it might be worth checking your options with Capital One if you live near a branch — just don’t forget to scout out the competition, too.
- Established small business owners. You likely won’t be eligible for financing unless you’ve been in business for at least two years.
- Small business owners in metropolitan areas. You’ll need to apply in person at a Capital One branch, which can require a longer drive if you live in a rural area or a city that doesn’t have a branch.
- Small business owners looking for an all-in-one banking solution. Capital One offers a full suite of business banking products in addition to its loans. Keeping everything in-house can simplify your business finances.
Capital One small business financing at a glance
| Product | Loan amounts | Repayment term | Estimated APR range | Fees |
|---|---|---|---|---|
| Real estate loans | $10,000 to $5,000,000 | Up to 240 months | Not specified | Not specified |
| Lines of credit | $10,000 to $5,000,000 | Not specified | Not specified | Not specified |
| SBA loans | Not specified | Not specified | Not specified | Not specified |
| Medical practice loans | Not specified | Not specified | Not specified | Not specified |
| Equipment loans | Not specified | Not specified | Not specified | Not specified |
Real estate loans
If you’re looking to purchase real estate, create a storefront for your business or invest in a warehouse, Capital One can help with a commercial loan. Loan proceeds can also be used to improve your property, and you can refinance an already-existing real estate loan as well. Capital One offers real estate loans with terms of up to 240 months with payment amounts.
Lines of credit
For short-term borrowing needs, Capital One offers small business lines of credit for up to $5,000,000. Small business lines of credit can be handy to smooth out potential cash flow issues, cover seasonal fluctuations in income and fund certain working capital or operating expenses.
SBA loans
Savvy business owners often consider SBA loans because they come with perks, like lower rates and longer repayment terms, since the SBA backs part of the loan. Capital One offers a few different types of SBA loans, including standard SBA 7(a) loans and high-dollar SBA 504 loans, as well as SBA Express loans and lines of credit.
As an SBA Preferred lender, Capital One can approve your SBA loan application in-house, allowing it to offer much faster funding times than other non-Preferred lenders.
Medical practice loans
Clinicians can benefit from Capital One’s medical practice loans to buy medical equipment. The loans can also be used to start and grow your medical practice. Visit a Capital One to learn more.
Equipment loans
Capital One also offers loans to purchase equipment for your small business. It doesn’t offer up any details on how they work, however, so you’ll need to contact a local Capital One banker to learn more.
Other loan options
Capital One’s website suggests that the bank may offer other “specialized lending” products like non-revolving lines of credit, investor real estate loans and loans for common interest realty associations (like HOAs and COAs). But the bank offers almost no information about what those loans look like or how to qualify.
Capital One borrower requirements
| Minimum annual revenue | Not specified |
| Minimum time in business | 24 months for most products |
| Minimum credit score | Not specified |
Just like with the interest rate and repayment terms on its small business loans, Capital One is tight-lipped about its business loan requirements. The only real criteria they’re clear about is that you’ll need to:
- Be in business for at least two years for most products
- Have a Capital One small business checking account or be willing to open one
Despite the fact that Capital One is primarily an online bank, you must apply for its business loans in person, which is complicated by the fact that it only operates a little over 250 brick-and-mortar locations. If you do happen to live near a branch, it’s worth scoping out to see what it can offer you.
Alternatives to Capital One
| Capital One | Wells Fargo Bank | OnDeck | |
|---|---|---|---|
| Minimum credit score | Not specified |
| 625 |
| Loan products offered |
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| Time to funding | Not specified | Not specified | As soon as the same business day |
| Starting rates | Not specified |
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| Maximum loan size | $5,000,000 |
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| Minimum annual revenue | Not specified |
| $100,000 |
Capital One vs. Wells Fargo Bank
If you prefer to do your banking in person (or at least with a large bank), consider Wells Fargo small business loans instead. It has many more physical locations than Capital One, with around 4,000 locations in 36 U.S. states. The only area where it’s not really available is parts of the Northeast and Midwest.
However, Wells Fargo has low rankings for customer service, which can be a major drawback if an issue comes up.
Capital One vs. OnDeck
If you’re willing to work with an online lender, OnDeck offers a refreshingly honest and simple experience for basic business financing needs. It’s up front with what requirements you’ll need in order to qualify, including being in business for at least a year.
The downside is it has a fairly high APR and you’ll only be able to borrow up to $400,000, which is much less than Capital One’s $5,000,000 maximum loan amount.
Compare business loan offers
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