Capital One business loans: 2023 review
The Bankrate promise
At Bankrate we strive to help you make smarter financial decisions. While we adhere to strict , this post may contain references to products from our partners. Here's an explanation for .
At a glance
| Overall Score | 3.2 |
|---|---|
| Overview | Capital One doesn’t go far enough to provide info on its website, but it offers business lines of credit, real estate term loans, SBA loans and other specialized lending solutions to established business owners. |
| Loan amount: | $10,000 to $5,000,000 |
| APR: | Not stated |
| Term lengths: | Up to 25 years |
| Minimum credit score: | Not stated |
Who Capital One is best for
Capital One is best for borrowers with companies that are at least two years old and have a business checking account with the lender. Having an existing relationship with Capital One could open the door to partnership rates. If you don't yet have one, you must apply for a Capital One business checking account before requesting business financing.
It’s also ideal if you prefer applying at a Capital One location since you can’t apply online for a loan.
Who Capital One may not be best for
Capital One may not be a good choice for startup businesses due to its minimum time in business requirement of two years. You may also want to consider other lenders if Capital One branches aren’t nearby.
Capital One pros and cons
PROS
-
Generous loan amounts
Several loan options
Lengthy loan terms
CONS
-
Limited disclosures on website
-
No online prequalification tool
-
Must visit a branch to apply
Business loan types offered
Capital One offers business lines of credit, real estate term loans, SBA loans, equipment loans, medical practice loans and other specialized loans and lines of credit.Lines of credit
Capital One’s maximum amount of $5 million for its lines of credit soars past the competition, which typically only offer maximum amounts of $250,000 to $500,000 for lines of credit.
Capital One’s website doesn’t offer much information that can help you compare products with other lenders. It will only disclose interest rates and additional fees “prior to booking.”Real estate term loans
Real estate term loans are designed to help small business owners purchase commercial property. You can also use the loan proceeds to refinance or improve a property you own. These loans come with extended repayment periods and fixed interest rates to make them more affordable for small business owners.SBA loans
Capital one features a variety of SBA loans, including SBA 7(a) loans, SBA 504 loans, SBA Express loans and SBA Express lines of credit in its lending arsenal. And unlike the other small business funding options from Capital One, these loans do not come with a minimum time in business requirement.
If you’ve tried getting business funding elsewhere, but without much luck, SBA loans could be a good fit for your company. They come with affordable rates and longer terms to make the loans more manageable.Additional loans
Capital One also features an assortment of other business loans and specialized lending solutions. These include non-revolving lines of credit, equipment loans, investor real estate loans and common interest realty association loans. You may also qualify for a medical practice loan to invest in new medical equipment, expand your current practice or open additional locations.Do you qualify?
Capital One mentions very little about the eligibility guidelines for its business loans. It also does not state if there are industry limitations or usage restrictions on business loans or lines of credit.
The website does state you’ll need the following to qualify for funding:
- At least two years in business (excluding SBA loans)
- An open Capital One business checking account
A minimum credit score isn’t specified, but a good or excellent credit score is ideal to qualify for business funding. The lender also doesn’t disclose a minimum annual revenue requirement. But it generally helps if your company’s finances are stable and you’re operating at a profit.
What we like and what we don’t like
What we like
- Generous loan amounts. Well-qualified borrowers can access up to $5 million through a business loan or line of credit.
- Several loan options. Borrowers can choose from terms loans, lines of credit or SBA loans to fit their company’s unique funding needs.
- Lengthy loan terms. You could get a repayment period of up to 25 years, making the monthly payment more affordable.
What we don't like
- Limited disclosures. Capital One does not display credit score or annual revenue requirements online, and there’s limited information regarding rates and other borrowing costs.
- No online prequalification tool. Prospective borrowers cannot check potential loan offers online.
- Must visit a branch to apply. You must meet with a branch ambassador at a Capital One branch to apply for business funding.
How to apply for a loan with Capital One
You can apply for a loan with Capital One at a physical branch. But before scheduling an appointment to see a banker, gather your personal and business documents you’ll need to expedite the application process.
If you haven’t yet spoken with a business banker by phone about funding opportunities, they will review those with you to find the best fit before submitting your application. Upon approval, you’ll need to review the loan documents and sign them for the loan to close and be disbursed to you.
Required application information
- Name, physical address and date of establishment, email address, phone number, date of birth and Social Security number
- Company’s legal name and address (P.O. boxes are not acceptable)
- Ownership structure
- Business establishment date
- Business tax ID number
- Number of employees
- Ownership percentages
- Annual gross revenue
- Business formation documents
- Operating agreement (if applicable)
Capital One FAQs
How Bankrate rates Capital One
Overall Score 3.2 Accessibility 2.7 Capital One doesn’t display enough information to show how accessible it is to borrowers. Affordability 3.0 The lack of information on its website makes it difficult to tell if its loans are affordable. Transparency 3.4 Capital One does show some information but does not go far enough to help borrowers make an informed decision when visiting its website. Customer experience 3.3 Having to apply in person drags down the lender’s score here. Flexibility 3.8 It offers a variety of products and suggests it may provide discount rates if you have an existing relationship, but more information is needed. Methodology
To select the top small business lenders, Bankrate considers more than 20 factors. These factors include loan amounts, approval and funding times, credit requirements, APR or factor rate ranges, fees, and easy-to-find rate and fee disclosures. Bankrate reviewed more than 20 lenders and gave each a rating, which consists of five categories:
- Accessibility: Factors considered in this category include minimum loan amounts, approval and funding speed, minimum annual revenue and minimum credit score.
- Affordability: This section measures interest or factor rates and fees.
- Transparency: How easy it is to find important rates, fees and eligibility requirements are considered in this category.
- Customer experience: Customer service hours, online applications and app availability are considered in this category.
- Flexibility: This category considers factors like the number of loan products and ability to change payment due date.
Editorial disclosure: All reviews are prepared by Bankrate.com staff. Opinions expressed therein are solely those of the reviewer and have not been reviewed or approved by any advertiser. The information, including rates and fees, presented in the review is accurate as of the date of the review. Check the data at the top of this page and the lender’s website for the most current information.