So, you're looking to fuel your business dreams and considering a business loan from Truist Bank? Excellent choice! Truist, formed from the merger of BB&T and SunTrust, offers a wide array of financing solutions for businesses of all sizes. Whether you're a budding startup, an established enterprise looking to expand, or simply need working capital, understanding the process is key. This comprehensive guide will walk you through every step, helping you navigate the journey to securing the capital your business needs.
Let's dive in and get you closer to achieving your financial goals!
How to Get a Business Loan from Truist Bank: A Step-by-Step Guide
Securing a business loan can seem daunting, but by breaking it down into manageable steps, you'll find it's a straightforward process. Truist aims to make financing accessible, offering various loan products to suit diverse business needs.
Step 1: Assess Your Business Needs and Financial Health
Before you even think about applying, the most crucial first step is to understand why you need a loan and how much you truly require. This isn't just about a number; it's about a strategic plan.
Sub-heading: Define Your Loan Purpose
- Working Capital: Do you need funds to cover day-to-day operations, manage seasonal fluctuations, or bridge gaps in cash flow?
- Equipment Financing: Are you looking to purchase new machinery, vehicles, or technology to boost productivity?
- Commercial Real Estate: Is it time to buy a new office, warehouse, or expand your existing physical footprint?
- Business Acquisition/Expansion: Are you planning to acquire another business or embark on a significant growth initiative?
- Debt Consolidation: Do you want to streamline existing business debts into a single, more manageable loan?
Knowing your purpose will help Truist tailor the best loan product for you.
Sub-heading: Evaluate Your Financial Standing
Truist, like any lender, will scrutinize your business's financial health. Here's what they'll typically look for:
- Creditworthiness: This includes both your personal credit score and your business credit score. A good payment history on various accounts (credit cards, existing loans) is highly favorable. While Truist doesn't publicly share a minimum credit score, generally, a stronger score improves your chances and can lead to better terms.
- Time in Business: Truist is more flexible than some lenders, as they don't have a strict minimum time-in-business requirement. Even newer businesses may qualify for smaller loans (up to $25,000) with a thorough underwriting process. However, established businesses (2+ years) often have access to a wider range of options and higher loan amounts.
- Annual Revenue: While there's no stated minimum for all loans, certain commercial loans (over $250,000) typically require at least $2 million in annual revenue. Truist assesses each business individually.
- Debt-to-Income Ratio: Lenders want to see that your business (and you, as the owner) can comfortably manage new debt payments alongside existing obligations.
- Collateral (for secured loans): If you're seeking a secured loan or line of credit, you'll need assets to pledge as collateral, such as real estate, equipment, or accounts receivable.
Be honest and thorough in your self-assessment. This will prepare you for the questions Truist will ask and help you gather necessary documentation proactively.
Step 2: Explore Truist's Business Loan Products
Truist offers a diverse portfolio of business financing options. Understanding the different types will help you identify the best fit for your specific needs.
Sub-heading: Small Business Loans
- Term Loans: These are traditional loans where you receive a lump sum and repay it with interest over a fixed period (e.g., 36, 48, or 60 months for unsecured loans; up to 180 months for real estate). They're ideal for specific, one-time investments like equipment purchases or expansion projects. Unsecured term loans typically max out at $100,000, while secured term loans can go up to $250,000.
- Small Business Lines of Credit: Think of this as a flexible credit card for your business. You're approved for a certain credit limit and can draw funds as needed, repaying and re-borrowing as your business cash flow dictates. This is excellent for managing seasonal cash flow, inventory purchases, or unexpected opportunities. Unsecured lines of credit are generally up to $100,000, and secured lines can reach $250,000.
- Small Business Auto Loans: Specifically designed for purchasing or refinancing business vehicles. Truist may offer 100% financing, even covering additional costs like delivery fees and taxes. Loan amounts typically go up to $250,000 with terms up to 75 months.
- Small Business Vehicle and Equipment Financing: Similar to auto loans, but for a broader range of equipment, from machinery to technology. Financing can go up to $250,000 with terms up to 84 months.
- Small Business Real Estate Loans: For acquiring or refinancing owner-occupied commercial properties. Loan amounts for small businesses generally cap at $250,000, but larger commercial real estate loans are available for businesses with higher revenue.
Sub-heading: SBA Loans (Small Business Administration)
Truist is an approved SBA lender, which means they offer government-backed loans. SBA loans are known for their flexible terms, competitive rates, and lower down payments, making them attractive for many small businesses.
- SBA 7(a) Loans: The most common type of SBA loan, highly versatile, and can be used for various purposes like working capital, equipment purchases, real estate, and even business acquisitions. Loan amounts can go up to $5.5 million.
- SBA 504 Loans: Primarily used for the purchase or renovation of major fixed assets, such as real estate or large equipment. These loans often involve two lenders (Truist and a Certified Development Company) and offer long repayment terms.
- Key Benefit of SBA Loans: The SBA guarantee reduces risk for lenders, making it easier for businesses that might not qualify for conventional loans to secure financing.
Sub-heading: Commercial Lending Products (for larger businesses)
If your business generates over $2 million in annual revenue and requires financing exceeding $250,000, Truist offers a separate suite of commercial lending products, including larger lines of credit, term loans, and specialized industry financing.
Step 3: Gather Your Documentation
This is where preparation pays off. Having all your documents ready can significantly expedite the application process. While the exact list may vary slightly based on the loan type and your business, here's a general overview:
Sub-heading: Business Documentation
- Business Plan: Especially crucial for newer businesses, outlining your operations, market analysis, financial projections, and how the loan will be used.
- Business Legal Documents: Articles of Incorporation/Organization, partnership agreements, business licenses, and registrations.
- Employer Identification Number (EIN): Your business's federal tax ID.
- Business Bank Statements: At least the last 12 months, preferably from Truist if you're an existing customer.
- Business Tax Returns: The last two to three years of federal business tax returns.
- Year-to-Date Profit & Loss (P&L) Statement: A current overview of your business's profitability.
- Balance Sheet: A snapshot of your business's assets, liabilities, and equity.
- Debt Schedule: A list of all existing business debts, including lender, outstanding balance, monthly payment, and interest rate.
- Collateral Information (if applicable): Documentation related to any assets you plan to use as collateral (e.g., property deeds, equipment titles, appraisal reports).
Sub-heading: Personal Documentation (for all business owners/guarantors)
- Personal Tax Returns: The last two to three years of federal personal tax returns for all owners with 20% or more stake in the business, and any guarantors.
- Personal Financial Statement: A summary of your personal assets, liabilities, and net worth.
- Bank Statements: Personal checking and savings account statements for the last two months.
- Debt Documentation: Information on personal debts like mortgages, student loans, and credit cards.
- Identification: Driver's License or other government-issued ID.
- Social Security Number: For credit checks.
Tip: Organize your documents neatly in a digital folder or physical binder. This demonstrates your professionalism and readiness.
Step 4: Initiate the Application Process
Truist provides multiple avenues to start your loan application, offering flexibility based on your preference.
Sub-heading: Online Application
For many small business loan types, especially those under $100,000, Truist offers a convenient online application. This is often the quickest way to get the process started.
- Navigate to the Truist Business Loans section on their official website.
- Select the type of loan you're interested in.
- Follow the prompts to complete the online application form, providing all requested business and personal information.
Sub-heading: Phone Application
You can also connect with a Truist Small Business Specialist over the phone. This can be beneficial if you have specific questions or prefer to discuss your needs directly with a representative before submitting a formal application.
- Call Truist's dedicated Small Business line: 833-866-5129.
- Be prepared to answer questions about your business, its financial health, and your loan purpose.
Sub-heading: In-Branch Application/Consultation
For larger loans, commercial financing, or SBA loans, an in-person visit to a Truist branch is often recommended, and sometimes required for final closing. Even if you start online, a branch visit might be necessary at a later stage.
- Use the Truist branch locator on their website to find a convenient location.
- Schedule an appointment with a business banker or loan officer. This ensures you get dedicated time and expertise.
- Bring all your prepared documentation with you to the meeting.
Important Note: While you can start online or by phone for many loans, you will likely need to complete the loan closing process at a local Truist branch if you are approved.
Step 5: Underwriting and Credit Decision
Once your application is submitted and all necessary documents are provided, Truist's underwriting team will begin their assessment. This involves a thorough review of your financial information and business viability.
Sub-heading: What Happens During Underwriting
- Credit Checks: Truist will pull your personal and business credit reports to evaluate your repayment history and credit scores.
- Financial Analysis: They will analyze your tax returns, financial statements (P&L, balance sheet), and bank statements to assess your business's revenue, expenses, profitability, and cash flow.
- Business Viability: The underwriters will evaluate your business plan (if provided) and overall business model to determine its capacity for repayment.
- Collateral Valuation (if applicable): For secured loans, any pledged collateral will be appraised or valued.
Sub-heading: Communication and Additional Information
- Be responsive: Truist may reach out with follow-up questions or requests for additional documentation. Responding promptly can significantly speed up the process.
- Transparency is key: If there are any challenges or unique aspects of your business, be open and transparent with your loan officer. They are there to help find solutions.
Sub-heading: Receiving a Credit Decision
- Truist aims for efficient processing. While a specific timeframe isn't always publicly stated for all loan types, your loan specialist will guide you on the expected timeline.
- You will receive a notification regarding your loan approval or denial. If approved, you'll receive a loan agreement outlining the terms, interest rate, fees, and repayment schedule.
Step 6: Loan Closing and Funding
Congratulations, you've reached the final stage!
Sub-heading: Reviewing the Loan Agreement
- Read every detail carefully: Understand the interest rate (fixed or variable), repayment schedule, any associated fees (origination fees, closing costs), and terms.
- Ask questions: If anything is unclear, don't hesitate to ask your Truist loan officer for clarification before you sign.
- Consider legal counsel: For larger or more complex loans, it's advisable to have an attorney review the loan agreement.
Sub-heading: The Closing Process
- As mentioned, the closing process for most Truist business loans will typically require an in-person visit to a local branch.
- You will sign the necessary legal documents to finalize the loan.
Sub-heading: Receiving Funds
- Once the loan is closed, the funds will be disbursed to your business account, often as soon as the same day for certain online-approved loans, or within a few business days for others.
Step 7: Manage Your Loan Responsibly
Securing the loan is a significant achievement, but responsible management is paramount for your business's long-term financial health and future borrowing potential.
- Make timely payments: This is crucial for maintaining a good credit history with Truist and other lenders. Consider setting up automatic payments.
- Monitor your business financials: Regularly review your cash flow and ensure you're on track to meet your repayment obligations.
- Communicate with Truist: If you anticipate any challenges in making payments, reach out to Truist proactively to discuss potential solutions.
10 Related FAQ Questions (How to...)
Here are quick answers to common questions about getting a business loan from Truist:
How to choose the right Truist business loan for my needs?
The best way is to assess your loan purpose (e.g., working capital, equipment, real estate) and your business's financial profile. Then, review Truist's offerings like term loans, lines of credit, or SBA loans, and discuss your specific situation with a Truist business banker.
How to qualify for a Truist business loan as a new business?
Truist has no strict minimum time-in-business requirement. While established businesses have more options, new businesses may qualify for smaller loans (up to $25,000) with a strong business plan and solid personal credit.
How to improve my chances of getting approved for a Truist business loan?
Maintain a strong personal and business credit score, have clear financial records (P&L, balance sheet, tax returns), demonstrate consistent revenue, and present a clear purpose for the loan. Existing Truist customers with a good banking relationship may also receive favorable consideration.
How to find out the interest rates for Truist business loans?
Truist does not publicly disclose all specific business loan interest rates. Rates are variable and depend on factors like loan type, amount, term, and your creditworthiness. It's best to discuss rates directly with a Truist loan officer during your application process.
How to apply for an SBA loan through Truist?
Truist is an approved SBA lender. You can start the application process online, by phone, or in person, but SBA loan applications often require an in-person submission or a significant portion of the process to be handled through a branch to ensure all guidelines are met.
How to prepare my financial documents for a Truist business loan application?
Gather your last 2-3 years of business and personal tax returns, recent P&L statements, balance sheets, and bank statements (both business and personal). Ensure all documents are accurate, organized, and up-to-date.
How to contact Truist's business loan department?
You can contact a Truist Small Business specialist by calling 833-866-5129. You can also visit their website to find a local branch or schedule an appointment.
How to use collateral to secure a Truist business loan?
For secured loans, you'll pledge specific assets such as commercial real estate, equipment, or accounts receivable. Truist will assess the value of these assets to determine the loan amount and terms. This can often result in lower interest rates or higher loan amounts.
How to check the status of my Truist business loan application?
Your Truist loan officer or business banker will be your primary point of contact for status updates. You can reach out to them directly via phone or email for information on your application's progress.
How to repay my Truist business loan?
Truist business loans typically have monthly repayment terms. You can often set up automatic payments from your business checking account, which is highly recommended for convenience and to avoid late fees.
