Capital One business loans review
Term loans, credit lines and more for established businesses with APRs from 5.9% to 18.65%
finder.com’s rating: 3.44 / 5.0
- Best for established businesses that have a banking relationship with Capital One.
- Pick something else if you need startup funding.
|Product Name||Capital One business loans|
|Loan Term||12 to 60 months|
|APR||5.9% to 18.65%|
|Requirements||Be for-profit for 2+ years, have a business checking account, no current tax liens on your business|
Anna Serio is a trusted lending expert and certified Commercial Loan Officer who's published more than 950 articles on Finder to help Americans strengthen their financial literacy. A former editor of a newspaper in Beirut, Anna writes about personal, student, business and car loans. Today, digital publications like Business Insider, CNBC and the Simple Dollar feature her professional commentary, and she earned an Expert Contributor in Finance badge from review site Best Company in 2020.
Capital One offers large amounts of financing at competitive rates to well-established small businesses. If you already have a business account or credit card with Capital One, applying for a business loan through your bank allows you to keep all of your finances in one place.
Its application process is hands on and personal — applying online isn’t an option. It’s best for business owners more comfortable working with a bank than an online lender.
How much will this loan cost me?
Capital One term loans generally come with rates that range from 5.9% to 18.65%, which includes a $150 origination fee. However, we weren’t able to verify this when we reached out to Capital One in June 2020 — you’ll need to get started on the application to find out what rates are available to you.
Loans start at $10,000 and can usually run as to $50,000, but it varies depending on the business. And your business can take from one to five years to repay the loan. Use the calculator below to see how much this loan might cost you.
Business loan calculator
See how much you'll pay
|Loan terms (in years)|
How it works
Typically, your business needs to be around for several years and you need to have a strong personal credit score of around 740 or higher to qualify for the lowest rates. If your business already has an account with Capital One in good standing, that can also help you qualify for more favorable rates, terms and loan amounts you qualify for. But if you just meet the requirements, you’ll likely receive higher rates.
What do I need to qualify?
To meet Capital One’s most basic credit requirements, you must:
- Be in business for at least two years
- Have a business checking account or open a Capital One business checking account
- Live in a state where Capital One has a location
Your business must be located in one of the following states or Washington, DC to be eligible for a Capital One business loan:
- New Jersey
- New York
What information do I need to apply?
Capital One doesn’t specify which documents you need. But often, banks ask to see the following documents from business loan applicants:
- Personal and business bank statements
- Tax returns
- Business plan
- Profit and loss statements
- Financial projections
- State-issued ID
You can ask about what documents your business needs to provide when you get started on the application.
What industries does Capital One work with?
Capital One doesn’t list any specific industries that are ineligible for a business loan. But banks tend to be selective and may not work with you if it considers your industry to be high risk. You may struggle to qualify if your business is in an industry like legal services, transportation, wholesaling or has otherwise struggled to get a bank loan in the past.
What other types of business financing does Capital One offer?
Capital One offers several different types of business financing in addition to term loans that cover most basic business needs.
Working capital lines of credit
Capital One’s offers credit lines so your business can access cash as it needs. Credit limits start at $10,000 with rates that had ranged from 5.9% to 18.65%, which includes an origination fee of 1.5% of the credit limit or $150 origination fee, and a 0.25% annual fee. However, we weren’t able to verify this as of June 2020.
Equipment and vehicle loans
Capital One offers one loan to cover two different needs: Buying equipment or a vehicle for your business. Business owners can get up to 100% of your equipment or vehicle’s cost, starting at $10,000. Rates had ranged from 5.9% to 16.9% APR, which include a $150 origination fee. But we were unable to verify this in June 2020.
Capital One also offers government-backed SBA 7(a) loans to cover general business expenses and CDC/504 loans for equipment and real estate costs. Unlike Capital One’s term loan program, you can find funding for businesses in the startup phase through these programs — though it can take several months to get your loan.
Real estate term loans
Capital One can finance up to 85% of a property’s value — up to $5 million, with terms as long as 20 years and amortization as long as 30. You can use these loans to improve, buy or refinance property.
Pros and cons
Capital One might be great for an established business, but it might not be the right choice for everyone.
- Low rates from 5.9% to 18.65%
- Low, fixed origination fee of $150
- No prepayment penalties
- No online application
- Only available in states where Capital One has a branch
- Limited information available before you apply
See other top business loan options
Is Capital One legit?
Yes, Capital One is a national bank that is a member of the FDIC, meaning it meets certain federal standards. It also takes several steps to protect your information. This includes using multifactor authentication to log into accounts and restricting employee access to sensitive information unless absolutely necessary.
Capital One reviews and complaints
|BBB customer reviews||1.1 out of 5 stars, based on 495 customer reviews|
|BBB customer complaints||7,125 customer complaints|
|Trustpilot Score||1.4 out of 5 stars, based on 407 customer reviews|
|Customer reviews verified as of||14 October 2020|
Like most large banks, Capital One has mostly negative reviews on its BBB and Trustpilot pages. While the majority of reviews involve Capital One’s credit cards, there are some comments on its business products.
The top complaint is customer service. Many customers express frustration with how difficult it is to reach out to the general customer service line, being put on hold or even getting hung up on — this was our experience as well. Another customer was frustrated with how difficult it is to manage their business account online, complaining that the website is buggy and lacking basic features.
How do I apply?
Capital One doesn’t offer online applications, but you can connect with a lender by filling out a quick online form.
- Go to Capital One’s website.
- Select Business in the main menu and in the drop-down menu, click Lending.
- Scroll down to the type of loan you’re interested in and click Learn more.
- Scroll down again and click Let’s connect.
- Fill out the form with basic information about your business.
- Check Lending at the bottom of the form and hit Submit.
What happens after I fill out the form?
A Capital One representative will be in touch to help walk you through the application. Previously, Capital One required you to apply in person, but you’ll likely be able to complete the application online or over the phone.
After you submit your application, Capital One will call with an offer, usually within two business days. You’ll also get an email with your loan details and a request for additional documents. After you submit your documents, Capital One sends you a loan agreement, which you can e-sign and submit.
How long does it take to receive your funds? As soon as 14 business days.
How do repayments work?
Once you start repaying your loan, consider setting up automatic payments. That way you can free up the time and mental space you’d take each month to make repayments. If you miss a repayment, Capital One charges a late fee of $39.
This doesn’t mean you can completely forget about your business loan, though. Keep an eye on your account to make sure it’s going smoothly. Call 888-755-2172 to reach out to customer service if you notice anything off.
Learn more about how business loans work or compare lenders, read our business loans guide.
Frequently asked questions
Business loan ratings
We rate business loan providers on a scale of 1 to 5 stars based on factors like transparency, costs and customer experience. We don’t take into account elements like eligibility criteria, state availability or payment frequency — we save that for our reviews.
Read the full methodology of how we rate business loan providers to get a better picture of what goes into each star rating.