PNC Small Business Lines of Credit Review


What is PNC?

PNC, also known as Pittsburgh National Corporation, is headquartered in Pittsburgh. Considered one of the largest diversified financial services institutions in the U.S., PNC has $379 billion in assets and deposits of $265 billion in deposits as of March 2018. The bank is a leading small business lender, offering several banking options from personal checking and savings accounts to various lines of credit.

In this article, we will thoroughly cover PNC small business lines of credit, while covering other PNC products and services in another article.


PNC Highlights

Trusting PNC with your small business financing needs can be a great idea for those living in one of the 19 states PNC operates business (Alabama, Delaware, Florida, Georgia, Illinois, Indiana, Kentucky, Maryland, Michigan, Missouri, New Jersey, New York, North Carolina, Ohio, Pennsylvania, South Carolina, Virginia, West Virginia, Wisconsin) and Washington, D.C..

If you qualify for a line of credit from PNC, here’s what you can expect:

Always open for business. PNC customers can bank how and where they want with features like remote deposits, online banking and bill pay, and mobile banking.

Intuitive business tools. PNC customers will also enjoy a slew of tools that will help them monitor their account and manage their businesses finances.

Access to large lines of credit. Approved borrowers can get a loan as little as $10,000 or as high as $3 million, depending on your business needs.


Lines of credit offered by PNC

PNC offers three line of credit products for businesses, including:

  • Choice Credit℠ for Business Line of Credit: An unsecured line of credit with loan amounts between $20,000 and $100,000 are available. The application process generally takes less time than others, and the borrower won’t have to put up any collateral. Rates will likely be higher than for other credit lines.
  • Secured Line of Credit: Businesses with non-real estate assets to collateralize can get a line of credit of $100,000 to $3 million. Rates are usually lower than an unsecured line of credit, and borrowers can get a larger amount of credit.
  • Business Equity Line of Credit: A line of credit of $10,000 to $1 million using equity from personal or commercial real estate.
Loan product Loan amount Loan term APR range/ factor rate Fees Time to funding
Choice Credit for Business Line of Credit $10,000 – $100,000. No collateral required. Not specified, but borrower is expected to pay 1.5% of the balance, or a minimum of $100. Prime plus 0.86% (5.86%) – Prime plus 8.14% (13.14%) $175 annually. Funds made available following loan closing. A borrower can transfer any amount within the line to another account, or write checks against it.
Secured Line of Credit $100,001 – $3 million. Secured by non-real estate business assets. Subject to annual renewal, with interest-only payments deducted monthly from the borrower’s PNC Business Checking account. Borrower can pay principal at any time. Variable, based on prime rate. Not specified, but notes that origination and annual fees may apply. Funds are available shortly after closing.
Business Equity Line of Credit $10,000 – $999,999. Secured by commercial or residential real estate. 7-year revolving credit period, followed by 10-year repayment period. Monthly interest-only payments deducted from PNC business account during the revolving credit period. Variable, based on prime rate. $175 annually. Funds available after closing and can be transferred into other accounts and other credit lines.

Rates current as of 6/18/2018

All lines of credit require payments to automatically be deducted from a PNC business checking account.


Line of credit eligibility requirements

Loan product Annual revenue Min. business credit score or personal credit score Time in business
All Not specified. But the bank generally requires upward and stable financial trends including profit and historical profits. Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) must be more than projected annual principal and interest payments. Not specified, but the bank requires a clean personal credit history, with no recent 30-day late payments or evidence collection accounts, charged off accounts or foreclosures.

On the business side, no evidence of bankruptcy, unsatisfied tax liens, judgments or lawsuits. In general, the business should have a history of paying all obligations on time.

Minimum 3 years.

Those considering a line of credit with PNC should keep the following in mind:

  • PNC requires borrowers to repay loans through their PNC business checking account.
  • Businesses that operate in cyclical or volatile industries must show a longer time in business with strong financial records.
  • The owner’s personal debt payments should allow for 60 percent of income to go toward living expenses and taxes.
  • PNC requires collateral for secured loans, including marketable assets such as equipment or real estate worth 1.25 the loan amount.

Businesses that are not eligible for PNC loans:

The PNC website does not list any ineligible businesses or industries. Those living outside the bank’s retail footprint (listed above) should call 1-800-762-5684 to speak with a PNC representative.


Should you apply for a line of credit with PNC?

Established, profitable businesses with excellent credit – that are also located within PNC’s geographical footprint – should definitely consider banking with PNC.

PNC customers can only apply for a Choice Credit℠ for Business Line of Credit or a secured line of credit online. All other lines of credit must be applied for in person. Business owners that aren’t existing PNC customers should visit a local PNC branch in order to become a customer.

Once your application has successfully been submitted, a loan officer will review your loan and it submit to underwriting.

Documents required to apply:

  • Government-issued photo identification for verification purposes.
  • Business legal name, address, phone number and email.
  • Type of business, year established, date acquired by current owner and Industry code.
  • Information about each business owner (name, home address, phone number, DOB, email address, and SSN). Title, citizenship and ownership percentage are required for all owners.
  • Business Tax ID, annual sales/gross revenue and number of employees.

Pros/Cons

Pros Cons
 PNC offers different options for lines of credit, depending on your business.   Not available in all states.
  Rates will be at least competitive with other lenders.   Stringent underwriting requirements.
  PNC is a solid institution offering many of the same services of any major commercial bank.   Fees and rate ranges aren’t readily available prior to the application process.

The fine print

It can be tricky to understand the total cost of the loan because the website doesn’t state the cost of their fees or they are presented as a range. PNC lines of credit are based on the prime rate, so be sure and talk through with your banker the fees and rates for your line of credit.