Business LoansSmall Business Lender Reviews
How Does LendingTree Get Paid?

How Does LendingTree Get Paid?

LendingTree is compensated by companies on this site and this compensation may impact how and where offers appears on this site (such as the order). LendingTree does not include all lenders, savings products, or loan options available in the marketplace.

Capital One Business Loans: 2023 Review

Editorial Note: The content of this article is based on the author’s opinions and recommendations alone. It may not have been reviewed, commissioned or otherwise endorsed by any of our network partners.

CapitalOne logo
  • Estimated APR range: Not disclosed
  • Best for: Established small business owners looking for highly regarded customer service with a personal touch.

Pros and cons of Capital One Business Loans

ProsCons

 Several financing options available

 High customer satisfaction ratings

 Closing cost rebate for owner-occupied real estate loans

 Slow funding times

 Not transparent at all

 Not an SBA preferred lender

 Need to apply in person at a branch

 Must have been in business for at least two years

 Branch locations are sparse and mostly on the East Coast

Capital One small business loans review

Capital One is a popular bank that exists online for the most part. It’s well-known for its credit cards but it has a robust small business lending arm, too, offering a wide range of products ranging from term loans and lines of credit to commercial real estate loans.

Who is Capital One for?

  • Established small business owners. You won’t be eligible for financing (aside from SBA loans) unless you’ve been in business for at least two years.
  • Small business owners on the East and Gulf coasts. You’ll need to apply in person at a Capital One branch, only available in the District of Columbia, Louisiana, Maryland, New Jersey, New York, Texas and Vermont.
  • Small business owners looking for a holistic 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

ProductLoan amountsRepayment termEstimated APR rangeFees
Term loans$10,000-$5,000,000Not disclosedNot disclosedOrigination fee
  • $150 for loans up to $100,000
  • 0.25% for loans between $100,000 and $250,000
  • Negotiable fee above $250,000. 
SBA loans$10,000-$5,000,000Not disclosedNot disclosedNot disclosed
Lines of credit$10,000-$5,000,000Not disclosedNot disclosedNot disclosed
Equipment financing$10,000-$5,000,000Not disclosedNot disclosedNot disclosed
Real estate loans$10,000-$5,000,000Up to 240 monthsNot disclosedNot disclosed

Term loans

Capital One‘s small business term loans set the stage for its other products in that there’s almost no information available about them other than the loan amounts and origination fee. When asked to provide more details about its term loans and other small business financing products, a company representative declined. However, small business term loans can be a good option for many business needs, such as renovating your storefront, buying inventory, hiring new staff and more.

SBA loans

SBA loans are a type of term loan that can make for a tougher application with slower funding times, but there’s a big advantage over regular term loans: because they are guaranteed by the U.S. Small Business Administration, they tend to be a lot cheaper. SBA loans are made through a partner financial institution — funding times may be quicker with an SBA Preferred lender, which Capital One is not. Even so, if approved, you can expect to get your money in anywhere from a few days for smaller loan amounts to three months for larger loans. Capital One offers two types of SBA loans: the standard 7(a) business loan for general-purpose business needs and the SBA 504/CDC business loan for larger loans, especially for commercial real estate.

Lines of credit

Lines of credit can be handy if you know you’ll need to borrow money intermittently in the future for your business, but you’re not sure exactly when. Rather than taking out a term loan every so often, a business line of credit allows you to apply for it once and draw money from the credit line as the need arises. It allows your business to be flexible and quickly adapt to changing marketplaces.

Equipment financing

Equipment financing is a type of secured business loan using the equipment that you’re buying as collateral for the loan. If you’ve ever taken out a car loan or leased a car, equipment financing for your business works in the exact same way. You can use it to buy manufacturing equipment, office equipment and computers and even vehicles for business use.

Real estate loans

In addition to commercial real estate financing available through the SBA 504/CDC program, Capital One also offers its own business real estate loan program. You may be able to finance up to $5,000,000 with a fixed-rate loan over a maximum term length of 240 months. You can use it to purchase a new property for your business, improve your current business property or even refinance other real estate debt.

As of October 12, 2022, Capital One is also offering a rebate against closing costs for owner-occupied real estate loans over $250,000: 1% of the loan amount, up to a maximum of $7,500. A representative from Capital One did not share for how long the rebate offer is available.

Capital One borrower requirements

Minimum annual revenueMinimum annual revenue 1
Minimum annual revenueNo minimum
Minimum time in businessTwo years, except for SBA loans which have no minimum time-in-business requirement
Minimum credit scoreNot disclosed

Just like with the interest rate and repayment terms on its small business loans, Capital One is tight-lipped about what you’ll need in order to get a business loan. The only real criteria they’re clear about is that you’ll need to have been in business for at least two years, and you’ll need to have a Capital One small business checking account or at least need to be willing to open one. A representative from Capital One declined to share credit score requirements or starting interest rates, but the stronger your credit profile, the more likely you can qualify for more competitive interest rates.

Oddly enough for a mostly online bank, you must apply for its business loans in person, which is complicated by the fact that it only operates a little under 300 brick-and-mortar locations in a handful of U.S. states along the East and Gulf coasts. It’s maybe for that reason that Capital One provides discernibly few details about its products. But 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

How Does LendingTree Get Paid?

LendingTree is compensated by companies on this site and this compensation may impact how and where offers appear on this site (such as the order). LendingTree does not include all lenders, savings products, or loan options available in the marketplace.

How Does LendingTree Get Paid?

LendingTree is compensated by companies on this site and this compensation may impact how and where offers appear on this site (such as the order). LendingTree does not include all lenders, savings products, or loan options available in the marketplace.

Capital OneWells FargoOnDeck
Minimum credit scoreNot disclosedNot disclosed625
Loan products offered
  • Term loans
  • SBA loans
  • Lines of credit
  • Equipment financing
  • Real estate loans
  • SBA loans
  • Lines of credit
  • Equipment financing
  • Real estate loans
  • Term loans
  • Lines of credit
Time to fundingA few business days up to three monthsAs soon as 10 days for unsecured credit lines, other products may take longerAs soon as same business day
Starting ratesNot disclosedPrime + 1.75%29.90% APR
Maximum loan size$5,000,000Up to $11,500,000$250,000
Minimum annual revenueNo minimumNot disclosed$100,000

Capital One vs. Wells Fargo

If you still prefer to do your banking in person (or at least with a large bank), consider Wells Fargo small business loans instead. It has far more of a geographical footprint than Capital One, with 16 times as many locations (4,739 in all in the U.S.) in 38 U.S. states. The only area where it’s not really available is parts of the Northeastern and Midwestern U.S. However, Wells Fargo has low rankings for customer service and the Consumer Financial Protection Bureau (CFPB) has taken several disciplinary actions against the bank.

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 upfront with what requirements you’ll need in order to qualify, including being in business for at least a year. The downside is it’s rather expensive, and you’ll also need to make weekly or even daily payments on your loan instead of the industry-standard monthly payments.

 

Compare Business Loan Offers

Recommended Reading