Capital One is a corporate bank offering financial products and services to clients in the U.S., Canada, and the UK. The financial giant offers small business loans, business lines of credit, and small business checking, savings and credit cards through its Spark Business suite of products.
Although Capital One began offering small business financing in 2005, it didn’t begin focusing specifically on small businesses until the launch of the Spark Business brand seven years ago.
Its lending products along with various checking, savings, and 401(k) offerings, are available to small businesses located in Connecticut, Delaware, Louisiana, Maryland, New Jersey, New York, Texas, Virginia and Washington, D.C.
Capital One customers will have the security of working with an experienced small business lender. Here are some great features of banking with one of the top banks in the country:
It can be tough securing a loan with Capital One, but it’s worth a shot if you have a strong credit profile and your business is doing well.
Capital One offers five different solutions for small business financing that start from $10,000 and go up to as much as $5 million for current customers, depending on product type and eligibility.
The annual percentage rate (APR) for Business Installment Loans, Equipment and Vehicle Loans and the Small Business Real Estate Loans could range from 5.9% to 16.9%. They also have a one-time origination fee of $150, and loans are subject to a $39 late fee or 5% of the amount due, whichever is greater.
The Working Capital Line of Credit has a variable rate that could range between 6.65% and 18.65% and is subject to a one-time origination fee of 0.5% of the credit line and an annual fee of 0.25% of the credit line.
Capital One offers three options through their Small Business Association (SBA) lending program, offering loan features they might not get with a conventional loan.
SBA 7(a) Loan Program: The most basic loan program offered by the SBA offers a wide range of options for small businesses, including long-term financing, fixed maturity, and no balloon payments.
SBA 504 Loan Program: Working with a Certified Development Company (CDC) – a private, non-profit corporation that contributes to the economic development of local communities – to offer long-term, fixed-rate financing.
SBA Express LOCs (line of credit): SBA guarantees lines of credit up to $350,000 for working capital.
|Loan product||Loan amount||Loan term||APR range/ factor rate||Fees||Time to funding|
|Business Installment Loans||Starts at $10,000||Up to 5 years||Could range 5.9% – 16.9%||One-time origination fee of $150||Varies from hours to a few days|
|Equipment and Vehicle Loans||Starts at $10,000||Up to 5 years||5.9% – 16.9%||One-time origination fee of $150||Varies from hours to a few days|
|Real Estate Term Loans||Up to $5 million||Up to 20 years and amortization up to 30 years for preferred industries||5.9% – 16.9%||One-time origination fee of $150||Varies from hours to a few days|
|SBA Loans||Varies||Varies||Varies||Varies||Varies from hours to a few days|
|Working Capital Line of Credit||Starts at $10,000||Varies||Variable rate that could range from 6.65% – 18.65%||One-time origination fee of 0.5% of the credit line and annual fee of 0.25% of the credit line.||Varies from hours to a few days|
Rates current as of 6/21/2018
**NOTE: CAPITAL ONE REP SAID ITS UNDERWRITERS DETERMINE THIS AND IT DOESN’T DISCLOSE THIS INFORMATION EXTERNALLY
Capital One doesn’t specify on its website, which businesses or industries are not eligible for small business loans. However, through its partnerships with organizations like Kiva and Grameen -Microlenders committed to helping low-income and impoverished communities by matching them with lenders- Capital One strives to help small business owners that don’t have a well-established credit history.
Capital One requires small business owners to apply in person for one of their small business lending products. This is great if you’re hesitant about applying online, but can be inconvenient for business owners with a full schedule.
Documentation requirements for Capital One financing vary by loan size and type. Loans that are $50,000 or less may not require financial documents. You will need the following documents if you’re seeking more than $50,000 in financing:
SBA loans require more comprehensive documentation for its various loan products. Those include:
|Offers various loan products||Must have a Capital One business checking account|
|Loans under $50,000 may not require financial statements||Must apply at a branch located in one of eight states (including Washington, D.C.)|
|No repayment penalty||Limited information available online|
Capital One’s small business lending products are pretty standard when stacked up against other traditional banks. If you’re a small business owner that’s been in operation for at least two years and has a well-established credit history, a business loan with Capital One may be a good solution for you.
Capital One has limited information about its lending products available online compared to other lenders, so be sure to do your homework and speak with a representative before submitting an application.