HSBC small business loans review April 2018 |
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HSBC small business loans review

Choose from three types of financing to suit the needs of your business.

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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.

What makes HSBC small business loans unique?

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.

What are HSBC small business loans?

HSBC offers three financing options for small business loans. The first is a business line of credit, which is beneficial if you’re looking to make multiple purchases. Fixed and floating term loans are also available.

Both term loans and lines of credit offer flexible repayment schedules to match your business’s cash flow.

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.

What are the benefits of HSBC small business loans?

  • Other 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.
  • 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.

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 your small business loans options

Rates last updated April 22nd, 2018
Table Image Product Description Min Loan Amount Maximum Loan Amount Requirements
LoanBuilder, A PayPal Service Business Loans LoanBuilder, A PayPal Service Business Loans Customizable loans for business owners in a hurry with no hidden fees. $5,000 $500,000 Annual business revenue of at least $100,000, at least 1 year in business, personal credit score of 600+. Go to site More
LendingTree Business Loans LendingTree Business Loans Compare multiple business financing options in one place including: small business loans, lines of credit, SBA loans, equipment financing and more. Varies by lender and type of financing Varies by lender and type of financing Varies by lender, but you many require good personal credit, a minimum business age and minimum annual revenue. Go to site More
National Business Capital Business Loans National Business Capital Business Loans Get a large business loan to cover your financing needs, no matter what the purpose is. Startups welcome with 680+ credit score. $10,000 $5,000,000 Your company must have been in business for at least 6 months and have an annual revenue of at least $180,000. Go to site More
Excel Capital Management Small Business Loans Excel Capital Management Small Business Loans Get personalized financing options that suit your unique business needs in just a few simple steps. Varies by loan type Varies by loan type Your business must operate in the US, be at least 1 year old and have monthly revenue of $15,000+. Go to site More
OnDeck Small Business Loans OnDeck Small Business Loans A leading online business lender offering flexible financing at competitive fixed rates. $5,000 $500,000 Must have been in business for at least one year with annual revenue of $100K+. Must have a personal credit score of 500+. Go to site More
Kabbage Small Business Line of Credit Kabbage Small Business Line of Credit A simple, convenient online application could securely get the funds you need to grow your business. $2,000 $250,000 Must have been in business for at least 1 year. Revenue minimum is $50,000 annually or $4,200 per month over the last 3 months. Go to site More
Fora Financial Business Loans Fora Financial Business Loans $5,000 $500,000 Business age 6+ months. Monthly revenue $12,000+. No open bankruptcies. Go to site More
LendingClub Business Loans LendingClub Business Loans With loan terms that vary from 1 to 5 years, enjoy fixed monthly payments and no prepayment penalties through this award-winning lender. $5,000 $300,000 2+ years in business; $50,000+ in yearly sales; No bankruptcies or tax liens; At least 20% ownership of your business; Fair or better personal credit Go to site More
SmartBiz SBA Loans SmartBiz SBA Loans Get funding for your small business with a government-backed loan and extended repayment terms. $30,000 $5,000,000 Personal credit score of 650+; US citizen or permanent resident; Business must be 2+ years old; Annual revenue of $50,000+; No outstanding tax liens; No bankruptcies or foreclosures in past 3 years. Go to site More

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.

I got an HSBC 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.

Bottom line

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.

Frequently asked questions about HSBC small business loans

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