Navy Federal Credit Union business loans review December 2018 | finder.com

Navy Federal Credit Union business loans review

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Up to $100,000 in unsecured term loans for servicemembers, vets and their families.

Navy Federal Credit Union (FCU) offers business loans with veterans in mind. With personalized service, competitive rates and a wide range of loan amounts, its unsecured term loans might meet your business’s financing needs. However, since the application process is very involved, it might not be ideal if your business needs funds fast or isn’t already a member.
Product NameNavy Federal Credit Union Unsecured Business Loan
Min Loan Amount$2,500
Max. Loan Amount$100,000
APR11%–18%
Interest Rate TypeFixed
Maximum Loan Term5 years
RequirementsMust be a business member of Navy FCU
  • Must be a business member of Navy FCU

How do I qualify for an NFCU business loan?

Navy FCU doesn’t have any hard eligibility requirements other than being a business member in good standing. However, it still considers factors such as your credit score, time in business and revenue when underwriting your application.

What types of business loans does NFCU offer?

Navy FCU offers several types of business loans, including unsecured business term loans. These don’t require any collateral and range from $2,500 to $100,000. Rates on unsecured term loans run from 11%–18% APR with terms up to 5 years. Your APR includes an origination fee that varies based on the amount you borrow.

Since this is a loan for a business rather than an individual, Navy FCU requires everyone who owns 20% or more of the business to personally guarantee the loan. This means that if your business isn’t able to pay off its debt, the business owners are responsible for repaying the loan.

What makes Navy FCU business loans unique?

Navy FCU’s business loan application process is more involved than other lenders. It might take more time and require more documents, but this helps ensure your company gets the right type of financing for its unique needs. It might be worth it, however. Its rates are highly competitive for business loans, especially for its unsecured business loans.

More business loans from Navy FCU

On top of unsecured business loans, your business can apply for the following types of financing from Navy FCU:

  • Secured term loans. Businesses that put up collateral can borrow between $5,000 and $1.5 million with rates from 5% to 18% APR.
  • Business lines of credit. Apply for credit limits up to $15,000 for ongoing business expenses.
  • Commercial vehicle loans. Get up to 80% financing to buy a vehicle in your business’s name.
  • Commercial real estate loan. Financing for all types of commercial-use properties with a range of repayment terms to choose from.

What are the benefits of a Navy FCU business loan?

  • Personalized service. Want help from an expert? You can talk to Navy FCU’s business advisers to find the best option for your business.
  • No prepayment penalties. Your business can save on interest by paying back any type of term loan ahead of schedule.
  • Competitive rates for servicememebers, vets and their families. While not as low as those on SBA loans, rates on Navy FCU’s business loans stop below where other types of business financing start.

What to watch out for

  • Personal guarantee. Anyone who owns 20% or more of the business is on the hook for paying off the loan if the business can’t.
  • Lots of forms and documents. Business owners will have to provide a list of personal assets and liabilities, a business plan and more documents, on top of the application itself.
  • You must become a business member first. While some credit unions allow borrowers to join during the application or after, your business needs to first be a member in good standing with Navy FCU to even get started.
  • Business membership requirements. In order to become a business member with Navy FCU, everyone who owns at least a 20% stake in the company also needs to become an individual member of the credit union.

Compare more business loan providers

Rates last updated December 11th, 2018
Unfortunately, none of the business loan providers currently offer loans for these criteria.
Name Product Product Description Min Loan Amount Max. Loan Amount Requirements
LoanBuilder, A PayPal Service Business Loans
Customizable loans with no origination fee for business owners in a hurry.
$5,000
$500,000
Annual business revenue of at least $42,000, at least 9 months in business, personal credit score of 550+.
Lendio Business Loan Marketplace
Submit one simple application to potentially get offers from a network of over 75 legit business lenders.
$500
$5,000,000
Must operate a business in the US or Canada, have a business bank account and have a personal credit score of 560+.
LendingTree Business Loans
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.
Credibly Business Loans
Funding to cover business expenses with daily or weekly repayments.
$5,000
$250,000
500+ personal credit score, 6+ months in business, $15,000+ average monthly deposits
National Funding Small Business Loans
Working capital loans and equipment financing, some high-risk industries may be eligible.
$5,000
$500,000
Be in business at least one year and make at least $100,000 in annual sales. Other loan types have additional requirements.
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
12+ months in business, $50,000+ in annual sales, no bankruptcies or tax liens, at least 20% ownership of the business, fair personal credit score or better
OnDeck Small Business Loans
A leading online business lender offering flexible financing at competitive fixed rates.
$5,000
$500,000
500+ personal credit score, 1+ years in business, $100,000+ annual revenue
Fora Financial Business Loans
No minimum credit score requirement and early repayment discounts for qualifying borrowers.
$5,000
$500,000
Business age 6+ months. Monthly revenue $12,000+. No open bankruptcies.

Compare up to 4 providers

How do I apply?

Once you’ve become a business member, you can apply for a business loan online, over the phone or at a local branch. If you want to borrow more than $50,000, you’ll need to call 877-418-1462 to speak with Navy FCU’s business development team.

Individual membership eligibility

You’re eligible to become a Navy FCU member if you fall into one of the following categories:

  • Active-duty member of the Army, Navy, Marine Corps, Coast Guard or Air Force
  • Member of the Air National Guard or Delayed Entry Program (DEP)
  • Veteran, retiree or annuitant
  • Department of Defense (DoD) reservist, officer candidate, ROTC member, civilian employee, civilian retiree or annuitant, or installations assignee
  • Family or household member of the above

Business membership eligibility

Your business must meet the following requirements to apply for business membership.

  • All members with 20% ownership or more must be Navy FCU members.
  • All owners’ accounts must be in good standing.

Steps to apply

Not a business member yet? You and your partners will need to submit the business membership form first. Here’s how:

  1. Go to the Navy FCU website and hover over Services in the main navigation bar. Select Business Services.
  2. Scroll down and click Membership. Then Learn More.
  3. Gather your documents and click Download Application. If your business is a corporation, partnership or LLC, you also need to complete a beneficial owner form and submit it along with your application.
  4. Upload your application, documents and forms by clicking Secured Document Upload (SDU) at the bottom of the page. Or, print out your documents and forms and bring them to your local branch.

Already a member? Follow these steps to apply for a business loan:

  1. Go to the Navy FCU website and hover over Services in the main navigation bar. Select Business Services.
  2. Scroll down and click Business Solutions, then Business Loans.
  3. Scroll down again until you reach the How to Apply section. Click on the hyperlinked text to download the application form and beneficial owner form.
  4. Fill out, sign and scan both forms.
  5. Click on the hyperlinked text that reads Business Loan Application Submission Link to upload all forms and documents to Navy FCU’s website.
  6. Follow the directions to review and submit your application.

It typically takes two to three business days for Navy FCU to process your application. Its business services team might reach out to you requesting additional documentation.

What documents do I need to apply?

Again, one of the drawbacks of Navy FCU’s business loans is the relatively complicated list of documents compared to other lenders. You and your business also need to provide documents to apply for business membership.

Documents to become a business member

Required documents vary depending on what type of business you have.

Documents to apply

At a minimum, business owners typically need to provide the following documents and forms along with their application:

  • Business plan. Navy FCU uses this to evaluate your business’s current financial standing and see where it’s heading in the near future.
  • Owner or guarantor personal financial statement. All business owners are required to submit this form detailing their assets and liabilities. You can download it on Navy FCU’s website.
  • Beneficial owner form. If your business hasn’t already submitted this with its membership application, you might be required to supply one with your loan application. You can also download this on Navy FCU’s website.

I got the Navy FCU business loan. Now what?

Your business is now responsible for making loan payments on time. If you haven’t already, ask if you can sign up for autopay. That way, you won’t have to take time out of your schedule to manage your loan repayments.

Watch your business bank account and loan balance. If you notice any charges that don’t make sense or have other questions about your loan, reach out to customer service as soon as possible.

Bottom line

Applying for a Navy FCU business loan is relatively involved, but its competitive rates might make it worth it. It’s not for everyone, however. Your business must be owned by servicememebers, vets and their family to be eligible to apply. To learn more about your business loan options and see how Navy FCU holds up to other lenders, visit our guide to business loans.

Frequently asked questions

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