Term loans, credit lines and more for established businesses with APRs from 5.9%–18.65%
If you already have a Capital One business checking account, strong personal and business finances and have a business that’s been around for a few years, a Capital One business loan could make sense. We take you through the details to help you decide if this loan is worth it for you.
|Product Name||Capital One Small Business Loans|
|Min Loan Amount||$10,000|
|Interest Rate Type||Fixed|
|Minimum Loan Term||1 year|
|Maximum Loan Term||5 years|
|Requirements||Must be in a for-profit business for 2+ years, with a business checking account, and no current tax liens on your business.|
- In business 2+ years
- Business checking account or open a Capital One business checking account
- For-profit business
- No current tax liens on your business
- Live in an eligible state
First, do I 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
- Be a for-profit business
- Have no current tax liens on your business
- Live in an eligible state
Your business must be located in one of the following states to be eligible for a Capital One business loan:
- Washington, DC
- New Jersey
- New York
What types of business loans does Capital One offer?
Capital One offers several different types of business financing that cover most basic business needs. These include term loans, lines of credit, equipment loans and more.
Business term loans
This type of financing is designed for large, one-time expenses: The immediate cost of bringing on new staff, buying office supplies and furniture for a new space. The only business cost you can’t use it for is real estate. Qualify for this loan and Capital One gives your business a lump sum of funds starting at $10,000. Your business then pays it back plus interest in fixed monthly repayments over a loan term of up to five years.
- APR range: 5.9%–18.65%
- Loan amount: Starting at $10,000 — usually up to $50,000, but it varies
- Loan term: 1–5 years
- Fees: $150 origination fee and late fee of $39
Working capital lines of credit
Got an ongoing expense? Capital One’s working capital line of credit might be what you’re looking for. These loans give your business access to a certain amount of funds to cover the cost of unexpected or recurring expenses like buying inventory — or even just keeping your doors open during a post-holiday slump in sales. Like term loans, lines of credit start at $10,000, though the rates are slightly higher.
- APR range: 9.65%–18.65%
- Loan amount: Starting at $10,000
- Loan term: Varies
- Fees: 1.5% or $150 origination fee, 0.25% annual fee and $39 late fee
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 their van, refrigerator or industrial mixer’s costs and can also use this loan to refinance the equipment. This loan isn’t for small equipment purchases — like Capital One’s other business loans, you must need at least $10,000 in financing to qualify.
- APR range: 5.9%–16.9%
- Loan amount: Starting at $10,000
- Loan term: Up to five years
- Fees: $150 origination fee and $39 late fee
On top of this, business owners can also get real estate loans and SBA financing through Capital One. If you’re interested in either of these loans, call your local branch to get information on how and where to apply.
What makes Capital One business loans unique?
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 or over the phone isn’t even an option. It’s best for business owners more comfortable working with a bank than an online lender who can meet its eligibility requirements.
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What are the benefits of Capital One business loans?
- Variety of loans. Capital One’s business loans and lines of credit cover most business needs.
- Apply in person. Skeptical of online applications? Worried about sending sensitive information over the Internet? Or just prefer going to a branch? You might like Capital One’s application process.
- 100% equipment and vehicle financing. Capital One will cover the full cost of your vehicle or business equipment if you qualify for this loan.
- No prepayment penalty. In other words, you can save on interest by repaying your business loan early.
What to watch out for
- Limited availability. Capital One business loans are only available in eight states and Washington, DC.
- Fees. All loans come with an origination fee and fees for making late repayments. Lines of credit also come with an annual fee of 0.25%.
- No online application. You can’t apply for your loan online — or even over the phone. You’ll have to go in person to a branch, which can take time you’d otherwise be able to spend running your business.
- Hard to get information before you apply. Capital One only posts basic information on its website and its customer service team isn’t always forthcoming about rates, fees and other information you’d need to make an informed decision.
What does the Internet say about Capital One?
Like most large banks, Capital One has mixed online reviews. It gets an A+ rating from the Better Business Bureau (BBB), based on factors like transparency and government actions against the business. It’s also been BBB accredited since 1995.
The online reviews tell another story, however. As of this writing, out of 154 customer reviews on the BBB page, 139 are negative. It also has over 4,700 customer complaints filed against it. Capital One is also a flop on Trustpilot scoring a 4.1 out of 10 rating based on 29 reviews. It only gets two stars, and only 24% of customers rated it as “Excellent.”
While the majority of reviews involved Capital One’s credit cards, there were some comments on its business products as well. The top complaint was customer service. Many customers were frustrated with how difficult it was 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 was to manage their business account online, complaining that the website was buggy and lacking basic features.
How do I apply?
Before applying, confirm you meet the qualifications for a Capital One business loan:
- Been in business at least two years. Generally, the longer you’ve been in business, the more likely it is you’ll get approved for a bank loan.
- Have a business checking account. If you don’t already have a checking account, you have the option of opening a Capital One business checking account when you apply.
- Be a for-profit business. Nonprofits, NGOs and government organizations typically can’t qualify for most business loans.
- Have no current tax liens on your business. In general, your business should be in good financial health and not owe any back taxes.
- Live in an eligible state. You’re ineligible if your business isn’t located in Connecticut, District of Columbia, Delaware, Louisiana, Maryland, New Jersey, New York, Texas or Virginia.
Keep in mind that these are just Capital One’s minimum requirements. Banks tend to have higher standards for creditworthiness than online lenders, so you could have better luck if you and the other business owners have good or excellent credit and a business that has a positive cash flow. If you have a Capital One account, you’ll also need to be in good standing with the bank.
Steps to apply
Capital One doesn’t offer online or phone applications, so you’ll need to head to your local branch to start your application. You can find a branch near you by following these steps:
- Go to Capital One’s website.
- Click Locations at the top right-hand side of the page.
- Enter your address under Near (Enter Location).
- Uncheck Cafes, ATM and Allpoint.
- Review the results, and double click on the branch you’d like to visit for details on its hours and the phone number.
How to find a branch screenshots
You might want to call ahead to make sure that branch offers the type of loan your business needs. Capital One generally recommends that business owners bring in their business’s tax number when they come in to apply.
Once you get to the branch, mention that you want to apply for a business loan. A loan officer will then sit down with you to talk you through the loan application process and narrow down your options. You’ll complete the initial application together by filling in your personal information and having Capital One look up your business details based on your business tax number.
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.
Typically, businesses get their funds in as little as 2 weeks.
What documents do I need to apply?
Capital One doesn’t specify which documents you need, as they can vary by loan type and the particulars of your business. Often, banks ask to see the following documents from business loan applicants:
- State-issued identification. Capital One will likely ask to see a driver’s license or passport for you and any other business owners.
- A business plan. A business plan is your chance to tell Capital One your business’s story: who you are, where your business came from and where you think you’ll be going. Pay careful attention to the financial projections section — this tells Capital One whether or not you think you’ll be able to repay your loan.
- Bank statements. If you don’t have a Capital One account, it might ask to see your business’s most recent bank statements to get an idea of your current finances.
- Articles of incorporation. Capital One might ask to see your business’s articles of incorporation or any other documents showing that your business is registered and listing the owners.
I got a Capital One business loan. Now what?
Now you’re free to spend your funds however you need — buy that van, bring on new staff, stock up your inventory.
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. 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.
Capital One business loans might work best for business owners that have been around the block a few times and don’t want to apply online. It’ll take considerably more time and effort than an online business loan, but you’ll get personalized service during the application process. And if you have a Capital One bank account, you might have an easier time being approved.
To learn more about how business loans work or compare lenders, check out our business loans guide.