HSBC small business loans review
Choose from three types of business financing with this major bank.
Running a business means never running out of work. Whether you’re a startup or established business, there’s always something to be done. If one of those somethings involves extra capital, HSBC may have a solution.
Each HSBC finance solution comes backed by years of experience from a global financial institution. HSBC offers online, phone and in-branch assistance with your lending needs.
How do HSBC small business loans work?
HSBC offers three financing options for small businesses.
- Line of credit. The first is a business line of credit, which is beneficial if you’re looking to make multiple purchases over a long period of time.
- Term loan. The second option is term loans, which come with flexible repayment schedules to match your business’s cash flow. Term loans can have “fixed” or “floating” interest rates.
- SBA loan. Your third option is a Small Business Administration (SBA) loan. Good for any point in your business’s journey, these loans can have immense benefits and are backed by the federal government.
Everything is computed by the bank per application, making it difficult to pin down set minimums, maximums, rates or terms before applying. One thing to note is that term loans can come with fixed or floating rates while lines of credit only come with floating rates. “Floating” is another term for variable — rates that fluctuate with the market.
What are the benefits of HSBC small business loans?
- Flexible repayment schedules. Accounting for your business’s cash flow, HSBC makes it easier to make repayments on time, every time.
- Dedicated specialists. SBA specialists are available if you’re interested in HSBC’s SBA Loan Programs.
- SBA perks. When you work with HSBC’s SBA Loan Program, you get access to low rates and the added benefit of knowing your loans are federally guaranteed.
- Other financial products available. HSBC offers business banking, deposit account services, debit and credit cards, cash management services and business protection to help your run your business.
What to watch out for
Even a global bank that’s been in business since 1865 is going to have a few drawbacks.
- Steep changes. A floating rate may be low when you’re starting out, but you risk it shooting up past what you could have received as a fixed rate. Even small rate changes can end up adding considerable interest costs to your loan, so weigh your options carefully.
- Terms vary. Because HSBC offers terms that vary significantly based on your qualifications, it doesn’t provide benchmark minimums, maximums, term limits or baseline requirements given. This means you’ll have to either apply blind or try to work out specifics based on exactly what you need.
- Overspending. An open line of credit can encourage unnecessary spending. Take care not to put yourself in more debt than needed.
- No online application. To apply for an HSBC product, you’ll need to call HSBC or visit a branch.
Compare more small business loan options
Am I eligible for a small business loan with HSBC?
If you’ve compared HSBC’s offerings and think its the right lender for your small business needs, confirm what you need to qualify. Requirements will differ based on what you want in terms of financing, but you’ll need to meet basic eligibility that includes:
- You must be at least 18 years old.
- You must be a US citizen or permanent resident.
- You must have demonstrable, consistent income that can support your existing debt obligations and desired loan amount.
If you meet the eligibility requirements and are ready apply:
- Visit a branch or call the phone number listed for the product you’re interested in.
- Submit your application in person or over the phone.
Details you may need to provide to HSBC include:
- Your full name, Social Security number and date of birth.
- Your contact information.
- Your business information.
- Annual revenue and other financial information.
Documentation will vary depending on your funding option, but at minimum you will need a driver’s license, passport or other government-issued ID as well as recent bank statements and business tax forms.
More about HSBC Bank loans
I got an HSBC business loan. Now what?
You’ve managed to get on the road to starting or expanding your business. Now it’s time to keep yourself on track for success.
For business lines of credit, take care with your spending to avoid paying much more than needed for things that aren’t necessary.
No matter which financing option you choose, making timely repayments to avoid harming your creditworthiness or paying unnecessary fees.
HSBC offers three products that it advertises can be uniquely tailored to your business. If you receive an offer from HSBC and you’re unhappy with the terms, do not feel pressured to take it. There’s nothing to say that you have to accept it: It’s only an offer.
Carefully read through the agreement of any loan offer, taking note of fees and repayment terms to avoid any surprises later.
As with any financing decision, budget properly to ensure successful repayment of your loan. If you’re unsure of how to interpret your contract, consider talking with a financial or business advisor for full understanding.