Thanks to alternative lending platforms, small business owners have more financing options than ever. But some business owners prefer doing business with a traditional brick-and-mortar bank lender.
The problem is that many commercial banks focus on enterprise-level financing for large corporations. Truist Bank is one exception because it offers traditional financing options for small businesses.
However, the traditional lender might not be the right fit for every business. We can help you decide if Truist meets your financing needs by covering the pros, cons and how to apply.
Specifically, we’ll answer these questions and more:
Truist is one of the largest banks in America, having emerged due to the merger between SunTrust and BB&T Bank in 2019. It’s a brick-and-mortar bank that offers consumer and commercial banking services, including small business loans.
The bank offers a hybrid model, where you can apply for certain loans online but must apply in person for others. It provides various traditional business loans, but you won’t find the fast funding options like merchant cash advances or invoice factoring, which other lenders offer.
However, its focus on small business lending – and the limited borrowing amounts available – differ from other traditional banks that primarily focus on multi-million-dollar deals for large enterprises. The lender is a good fit for small business owners who want traditional, in-person banking and lending experience.
The bank offers various term loans and lines of credit. All Truist business loans carry origination fees.
Here are the loans offered by Truist Bank.
Term loans are traditional financing structures where you receive a large sum of cash upfront and repay it plus interest over the loan term. Truist offers both unsecured and secured term loans.
Unsecured loans do not require collateral, making them a good option for business owners who don’t have strong business assets. The bank’s unsecured business term loan option only lets you borrow a maximum of $100,000.
Secured loans include collateral. The assets you pledge give more security to the lender, hence why no collateral loans are unsecured and collateralized loans are secured. You can borrow up to $250,000 with a secured term loan.
This type of financing is best for large one-time purchases or expenses. You can use the loan proceeds for various business objectives.
A business line of credit provides an available credit limit to draw funds as needed. Truist offers unsecured and secured lines of credit and revolving and non-revolving lines.
Like its term loans, unsecured lines of credit only go to $100,000, while secured lines go up to $250,000. A revolving line of credit is like a credit card. You draw funds as needed, and your credit limit replenishes when you pay off what you draw.
Non-revolving lines of credit are closer to a loan for a fixed amount. Instead of getting all the funds at once, you can draw from the line as needed. Once you’ve drawn all the funds, the line of credit closes.
You only pay interest on the money you draw from your line of credit. This type of financing is good for working capital, ongoing projects, seasonal businesses, and unexpected costs.
Companies that need to purchase a vehicle for business use can consider a business auto loan. The bank offers financing for 110% of the vehicle cost, with the extra 10% available for soft costs such as delivery fees, tags, title, and insurance.
A commercial auto loan is similar to a consumer auto loan, but the vehicle is titled and registered in the business’s name. The vehicle you’re financing usually serves as collateral for the loan.
Equipment financing can include various pieces needed for business, including computers, restaurant equipment, manufacturing machinery, construction equipment, and business vehicles. Similar to its business auto loans, Truist can finance 110% of the equipment costs with an extra 10% to cover soft costs. Soft costs only apply when financing passenger vehicles, commercial vehicles, agricultural equipment, or construction equipment.
You can use either the commercial vehicle and equipment loan or auto loan to buy vehicles for your business. Commercial vehicle and equipment loans would be for specialty vehicles that include equipment, such as food trucks, heavy machinery, and more. The auto loan option is better for a standard car.
Truist’s business real estate loans provide funding to purchase, renovate or expand a location. You can also use this option to take out a loan against existing real estate equity, which you can use to grow the business.
Truist Bank is an SBA-preferred lender, but they do not offer online applications for these loans. Potential SBA borrowers must visit a bank location in person to apply.
That requisite limits where Truist SBA loans are available. The bank is active mainly in the southern and eastern United States.
Truist Bank doesn’t list a minimum credit score, time in business, or annual revenue to apply for any of their small business loans. You must contact the bank or apply to see if you will qualify.
You will need to provide the following:
The lending products best suit business owners who bank with the company. It is a full-service bank, so its focus goes beyond business lending. A small business owner with a Truist Dynamic Business Checking account can save 0.5% on their loan interest rate.
While it offers small business loans, it also provides commercial lending. Businesses that earn more than $2 million annually would potentially be eligible for the bank’s large financing options, such as commercial real estate loans.
Funding times could take several weeks since it’s a traditional brick-and-mortar bank. Comparatively, alternative lenders usually fund loans within 72 hours, and some offer same-day funding.
The website does not provide information on any business loan affiliate program. ISOs and business loan brokers should contact the lender to see if they can offer their products to their small business clients.
SBA borrowers must apply at a branch. Otherwise, you can apply online, over the phone, or at a branch. Follow these steps to apply online.
The Truist small business loan website provides a convenient loan application. You’ll select the loan type and loan amount you’re seeking.
A Truist representative will contact you if your application is approved. You will discuss the application with a loan officer who might ask for additional documentation.
The bank will walk you through the next steps if you decide to move forward after getting your loan amount, terms, and interest rates. The closing and funding process varies depending on the loan type.
Most Truist business loan products carry monthly payments. Lines of credit might have weekly payments.
You can set up automatic payments to avoid missing any payments. Most loans have an APR, so you can save interest by paying them off early.
Secured term loans carry a potential 15-year amortization period. At the end of the 5-year term, you would have three choices:
This is called a balloon loan because it carries a balloon payment at the end of the loan term. There are some risks involved. If Truist declines to renew the loan, you’d have to secure financing elsewhere or make the large payoff out-of-pocket.
One of the primary benefits is that the bank works with small business owners. You do not need to meet a minimum credit score, revenue, or time in business requirement to apply.
The bank offers various traditional business loans. You can find financing options for most business needs.
Auto and commercial loans provide up to 110% of the equipment price to help cover soft costs. You also get a convenient online application.
The bank does not provide transparency on interest rates or qualifications. You must apply to see if you’re eligible and what the costs will be.
Loan amounts only go up to $100,000 for unsecured financing and $250,000 for secured business financing. Those limited amounts are smaller than many small business loan options.
You can only apply for SBA loans at a branch location. There might be balloon payments for real estate loans and secured term loans.
Funding can take a long time. There are no fast cash financing options.
Yes, Truist is an SBA lender, but it does not provide an option to apply online. Business owners interested in an SBA loan through Truist must apply at a branch location.
The US Small Business Administration (SBA) partially guarantees SBA loans and limits what lenders can charge. The partial guarantee gives lenders the security to offer higher borrowing amounts at lower interest rates and longer terms. SBA lending is considered the gold standard of small business financing.
Truist has many negative reviews, but they are all from the consumer banking side. Most negative complaints concern mortgages, personal checking accounts, and other consumer services.
The bank has a 1.1 out of 5 rating on over 1,000 Trustpilot reviews. It has a 1.1 out of 5 rating on over 2,000 Better Business Bureau (BBB) reviews. However, it is BBB accredited with an A+ rating.
While it doesn’t set minimum qualifications, Truist will pull your credit report when you apply. The bank examines your credit history and business financials when determining approval. Lower credit scores, inconsistent revenue, and other issues could trigger a denial.
If you were declined, the denial letter should explain why. Contact the bank directly if you need more information.
Fortunately, there are many lenders available if Truist doesn’t work. You can try another commercial bank, like Wells Fargo or CIT Group. However, you might have more luck with one of the various alternative lenders and lending marketplaces when seeking financial assistance for your company.
Most alternative financing facilitators provide a convenient online application process with quick approvals and fast funding options.
Here are some other small business loan options to consider.
Business term loans.
Business line of credit.
Merchant cash advance.
SBA loans.
Invoice factoring.
Revenue-based financing.
Bad credit business loans.
Working capital loans.
Equipment financing.
ERTC Advance.
Truist small business loans are best suited for business owners who want a traditional banking experience and don’t need urgent funding. While the lender doesn’t publish interest rates, banks typically have very competitive costs.
Small business owners who need quick funding or want to apply for an SBA loan online must find a different lender. In addition, if you’re not using Truist business banking services, you might prefer a lender or marketplace that focuses exclusively on business financing.
Based on the loans and information available, we rate Truist Bank small business loans as 3.9 out of 5. It’s a worthwhile option if you want a traditional lender, but the funding times and lack of transparency on costs are problematic.
Disclaimer: The Truist trademark is owned by Truist Financial Corporation and its use herein is for reference purposes only and it does not indicate sponsorship or endorsement from Truist Financial Corporation.
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