TD Bank business loans: 2023 review
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At a glance
| Overall Score | 3.8 |
|---|---|
| Overview | TD Bank offers lending solutions to help you start or grow your business. Business loans are currently available in 15 states and Washington, D.C. |
| Loan amount: | $10,000-$5 million |
| Interest rate from: | Prime + 0.74% |
| Term lengths: | 1-25 years |
| Minimum credit score: | Not disclosed |
Who TD Bank is best for
TD Bank is ideal for established companies and startups. There’s no minimum time in business requirement, and you can choose from multiple flexible commercial loan solutions. Borrowers seeking a more personalized lending experience may also find TD Bank attractive. You can visit physical branches to receive face-to-face assistance from a loan officer.
TD Bank may not be ideal if you’re seeking a streamlined online lending experience. You can apply for select loan products under $250,000 online. Still, the documentation requirements are generally heftier than with online lenders. You may also be required to meet with a loan officer to discuss your funding request in greater detail.
TD Bank pros and cons
PROS
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Funding accessible to startups
Generous loan limits
Rapid approvals
CONS
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Not available in all 50 states
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Loan origination fees
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Some loans require in-person application
Business loan types offered
TD Bank offers business term loans, lines of credit, commercial mortgages and SBA loans.
Additionally, the bank offers USDA loans of up to $25 million for businesses in rural communities, healthcare practice financing and numerous commercial equipment financing solutions. Beyond loans, TD Bank has checking accounts and credit cards meant for small businesses.
If you set up automatic payments from a TD Bank business checking account, you may be eligible for an interest rate discount.
Term loan
The term loan from TD Bank is suitable for business owners seeking working capital to expand operations. You can also use it to buy a commercial vehicle or equipment. It comes with a fixed interest rate and predictable monthly payment.The loan proceeds are dispersed in a lump sum and repaid through automatic deductions from your checking account. Collateral is required for approval.TD Bank charges an origination fee, and additional third-party expenses may apply.Line of credit
The business line of credit is also a secured product that requires collateral to get approved — usually a blanket lien on your business’s assets. You can borrow and re-use funds as needed and only pay interest on the amount you withdraw. The rate you’ll receive is variable, and TD also offers an interest-only payment option that allows you to make reduced payments during the draw period.
To qualify for a TD Bank line of credit, you’ll need a TD business checking account with a balance of at least $40,000, and you must allow payments to be automatically deducted from that account.
TD Bank charges an origination fee, and additional third-party expenses may apply.
Commercial mortgage
A commercial mortgage can be used to acquire real estate for your company or refinance an existing loan. It comes with a fixed interest rate determined by your credit rating and relationship with the lender. The loan is secured by the property you acquire or refinance.
TD Bank charges an origination fee on commercial mortgages.
SBA loan
TD Bank also offers flexible loans backed by the U.S. Small Business Administration. These loan products cater to business owners who aren’t a good fit for a conventional commercial loan and seek an affordable financing solution. SBA 7(a), 504 and Express loans are available. TD Bank charges a packaging fee on SBA loans; you’ll also need to make a down payment.
Do you qualify?
To be eligible for a small business loan from TD Bank, your business must operate in one of the 15 states they serve or Washington, D.C. Collateral is also required if you’re applying for a term loan or business line of credit. But if you’re seeking an SBA loan, you’ll need to have the funds available to make the minimum down payment.
TD bank does not specify industry or spending limitations for its business loan products. There’s no set time in business requirement; instead, according to a company representative, “"All businesses regardless of establishment date are considered."
What we like and what we don’t like
TD Bank features a variety of lending options and other benefits worth considering.
What we like
- Funding accessible by startups: TD does not have a minimum time in business requirement for small business loans.
- Generous loan limits: You could be eligible for up to $5 million in funding on SBA 7(a) loans.
- Rapid approvals: Many borrowers receive lending decisions as soon as one business day.
What we don't like
- Not available in all 50 states: TD Bank only offers business loans in 15 states and Washington, D.C.
- Loan origination fees: You’ll pay an origination fee on term loans, commercial mortgages and lines of credit. SBA loans are subject to a packaging fee.
- Some loans require in-person application: You can apply online for loans under $250,000, but for higher amounts, you’ll have to print a physical application and bring it into a TD Bank location.
How to apply for a loan with TD Bank
The application process varies by loan product. You can apply online for a line of credit or loan under $250,000. If you’re looking to borrow more or apply for a commercial real estate loan or SBA loan, you’ll need to make an appointment to visit a TD Bank branch.
TD Bank offers small business customer support from 8:30 a.m. to 5 p.m. ET, Monday through Friday. You can also log in through the mobile app to reach a live agent or visit a local branch during business hours for assistance.
TD Bank FAQs
How Bankrate rates TD Bank
Overall Score 3.8 Accessibility 3.6 TD Bank offers a range of loan amounts and fast approval times, though some requirements aren’t disclosed. Affordability 4.2 Interest rate ranges for most TD Bank loan products are unclear, but it gets points for its autopay discount. Transparency 3.6 TD Bank discloses some, but not all, rates and requirements for their products. Customer experience 3.7 Customers can apply online for some loan products, and TD Bank offers a highly rated app. Flexibility 4.0 TD Bank offers many funding solutions and the option to change your payment due date. 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.