Truist Business Loans Review
Janet Schaaf is a freelance writer, editor and proofreader who considers reader advocacy to be her calling. After taking a few roads less traveled, Janet completed a bachelor’s degree in English Literature from the University of Missouri-Kansas City, with English Department Honors. She has been correcting grammar and checking facts since she could string a sentence together. For the past three years, Janet has focused on making personal finance topics understandable and relatable. Loan terms and credit card agreements can look overwhelming, but understanding what you’re agreeing to is paramount in grasping the impact debt can have on your life.
 | Starting rate: Not publicly disclosed Best for: Small business owners who want the experience of working with a traditional bank and conventional lending products, but don’t need excessive funds. |
Pros and cons of Truist
| Pros | Cons |
|---|---|
No minimum time-in-business or annual revenue requirements Wide suite of traditional lending products More than 100% financing available for auto loans and commercial vehicle and equipment loans | Relatively small loan amounts compared to other traditional lenders Lack of transparency about rates and minimum credit score requirements Doesn’t offer SBA loans |
Truist small business loans review
Truist is the result of the 2019 merger between SunTrust and BB&T Banks. As a traditional brick-and-mortar bank with over 2,000 branches across the U.S., Truist offers a range of affordable small business financing options like term loans, lines of credit, vehicle and equipment financing, commercial real estate loans, business credit cards and more. Truist doesn’t facilitate SBA lending, and its maximum loan amounts are relatively smaller than other conventional banks. However, you may qualify for higher loan amounts with its commercial lending program if your annual revenue exceeds $2 million.
Who is Truist for?
- Borrowers who need relatively small amounts. Max loan amounts cap at $250,000 at Truist — you won’t be able to borrow millions.
- Business owners wanting to work with a traditional bank. With Truist, you’ll find a wide selection of traditional lending products and small business solutions like business banking, employee benefits, insurance and merchant services.
- Those not needing SBA funding. Truist is not an SBA lender.
Truist small business financing at a glance
| Product | Loan amounts | Repayment term | Estimated APR range | Fees |
|---|---|---|---|---|
| Unsecured term loans | $3,500 to $100,000 | Up to 60 months | Not shared publicly | No origination fee; other fees and closing costs may apply |
| Secured term loans | $3,500 to $250,000 | Up to 60 months with 180-month amortization | Not publicly shared | Origination fee of 0.50% or $100, whichever is greater |
| Unsecured lines of credit | $3,500 to $100,000 | 12 to 36 months | Not shared publicly | Origination fee of 0.50% or $100, whichever is greater |
| Secured lines of credit | $3,500 to $250,000 | 12 to 60 months | Not publicly shared | Origination fee of 0.50% or $100, whichever is greaterAdditional closing costs |
| Small business auto loans | $3,500 to $250,000 | Up to 75 months | Not shared publicly | Origination fee of $100 |
| Commercial vehicle and equipment financing | $3,500 to $250,000 | Up to 84 months | Not shared publicly | Origination fee of 0.50% or $100, whichever is greaterAdditional closing costs |
| Commercial real estate loans | $3,500 to $250,000 | Up to 180 months180-month amortization on residential loans300-month amortization on commercial loans | Not shared publicly | Origination fee of 0.50% or $100, whichever is greaterAdditional closing costs |
Term loans
Truist offers two different types of business term loans: secured and unsecured. Both start at $3,500 with repayment terms of up to 60 months. The origination fee only applies to the secured option, which is either 0.50% of the loan amount or a flat $100, whichever is greater.
You can borrow up to $100,000 with Truist’s unsecured term loan or up to $250,000 if you secure your loan with assets. Secured business loans also come with a potential 15-year amortization period, which means you’d have three choices at the end of your initial, up-to-60-month term:
- Pay off your remaining balance in full.
- Renew your loan with Truist at a new interest rate.
- Refinance the remaining balance with another lender after the initial term is over.
This is known as a balloon loan, and some risks are involved. Truist may choose not to extend a new loan, which means you’d only have the option of refinancing your business loan elsewhere or owing the remaining balance in full after the initial term expires.
Lines of credit
Truist also offers secured and unsecured business lines of credit with credit amounts starting at $3,500 and origination fees that are the greater of 0.50% or $100. You’ll need to make either interest-only payments or pay 1.5% of the balance due each month.
While unsecured lines of credit max out at $100,000 with terms of up to 36 months, you can get a secured line up to $250,000 with terms of up to 60 months. If you go the secured route, there may be additional closing costs that include the following:
- Title insurance premiums
- Attorney fees
- Evaluation fees
- Flood certification
- Recording fees
Small business auto loans
Truist offers small business auto loans with 110% financing available. The extra 10% can finance soft costs like equipment add-ons, delivery fees, taxes and tag and licensing costs. Loan amounts range from $3,500 to $250,000 with terms of up to 75 months. You will also incur an origination fee of $100.
Commercial vehicle and equipment financing
Commercial vehicle and equipment loans also come with 110% financing available at Truist. The extra 10% can cover the same soft costs as auto loans. It’s important to note that soft costs can only be applied when financing passenger vehicles, commercial vehicles, agricultural equipment or construction equipment.
Loans are available from $3,500 to $250,000 with terms of up to 84 months. In addition to origination fees (the greater of 0.50% of the loan amount or $100), you may also pay closing costs for evaluation and recording fees.
Commercial real estate loans
Truist offers residential investment property loans and commercial real estate loans for small business owners. Your loan-to-value ratio on these products can be up to 85%. Loan amounts range from $3,500 to $250,000 with initial terms of up to 180 months and an origination fee of 0.50% or $100, whichever is greater. Additionally, you will likely incur closing costs for things like:
- Title insurance premiums
- Attorney fees
- Evaluation fees
- Flood certification
- Recording fees
With a residential loan, you will be paid in full at the end of your up-to-15-year term. But for commercial loans, you might be able to get an amortization period of up to 25 years, which means it’s a balloon mortgage. At the end of your 15-year term, you’ll still owe 10 years of payments, which you can pay all at once or refinance through Truist or another lender.
Truist borrower requirements
| Minimum annual revenue | None |
| Minimum time in business | None, but there might be extra paperwork requirements if you’ve been in business for less than two years |
| Minimum credit score | Not publicly shared |
Truist works with each small business individually to determine if it’s in strong enough financial standing to qualify for a small business loan. Because of this, it doesn’t have explicit minimum annual revenue or business history requirements. However, startups with less than two years in operation might have to submit additional paperwork during the underwriting process.
For businesses needing loans larger than $250,000, Truist does have a separate suite of commercial lending products if you generate at least $2 million in annual revenue.
Required documents
If you are ready to apply for a small business loan, Truist accepts applications online, over the phone or in person at a local branch. Gathering the following business loan documents in advance can help speed along your application process:
- Basic info about your business and its operations
- Your name, address, phone number and Social Security number
- Two years of employment history
- Information regarding your personal income, debts and business taxes
- Information about your collateral, if applicable
- Name and contact information for any co-borrowers, guarantors or anyone who owns a 20% or more stake in the business
Remember, if you’ve been in business for less than two years, there may be additional paperwork requirements.
Alternatives to Truist
| Truist | PNC | U.S. Bank | |
|---|---|---|---|
| Minimum credit score | Not disclosed | Not disclosed | Not disclosed |
| Loan products offered |
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| Starting APR | Not disclosed | Not disclosed |
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| Maximum loan size |
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| Minimum annual revenue | No specific minimum | Not disclosed | Not disclosed |
Truist vs. PNC
If you want access to more capital, PNC could be a better fit for your business with its SBA loan program providing up to $5,500,000 in funds. However, new companies looking for a startup business loan might have better luck with Truist since there isn’t a set minimum time-in-business requirement. In contrast, PNC typically requires at least two years of business history to qualify for small business financing.
While both lenders don’t publicly disclose their business loan interest rates, each bank’s rates will likely be competitive since traditional banks are known to offer lower rates than alternative online lenders.
Truist vs. U.S. Bank
If you’re looking for an unsecured term loan, Truist could be a better choice since it offers $50,000 more than U.S. Bank. However, U.S. Bank takes the lead with equipment financing, providing up to $1,000,000 versus Truist’s $250,000. If your business needs an SBA loan, U.S. Bank can help fast-track your SBA loan application as an SBA-preferred lender, allowing you to access up to $12,375,000 million in funds in as little as two weeks. Furthermore, U.S. Bank offers quick business loans with funding as quickly as the same business day.
While U.S. Bank doesn’t list its eligibility requirements, you’ll likely need at least two years in business with a credit score of 680 or higher to qualify, according to standard SBA loan requirements. Meanwhile, Truist might be more willing to lend to newer companies if they can provide additional paperwork.