Regions Bank business loans review October 2018 | finder.com

Regions Bank business loans review

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Apply online to get up to $1,000,000 in funding with APRs of 7%–17%.

Business bank loans are sometimes hard to qualify for, especially if your company is young or you’re not looking for millions of dollars in financing. But Regions Bank is an exception. It offers term loans and lines of credit up to $1,000,000 with minimal eligibility requirements through the online lender Fundation.
Product NameRegions Bank Small Business Loans and Lines of Credit
Min Loan Amount$15,000
Max. Loan Amount$1,000,000
APR7%–17%
Interest Rate TypeFixed
Minimum Loan Term1 year
Maximum Loan Term5 years
RequirementsAt least one year in business, $50,000 in annual sales and a personal credit score of 600
  • Be at least one year in business.
  • Have a credit score of at least 600.
  • Make at least $50,000 in annual sales.
  • Not operate in Nevada.

First, do I qualify?

You and your business must meet the following requirements to be eligible for a loan:

  • Be at least one year in business.
  • Have $50,000 in annual sales.
  • Have a personal credit score of 600.
  • Not be based in Nevada.

What is a Regions Bank business loan?

Regions Bank offers unsecured term loans from $15,000 to $1,000,000 and lines of credit from $20,000 to $100,000 through the online lender Fundation. Regions Bank is also willing to work with businesses that need higher amounts, though it’ll likely have more restrictive eligibility requirements.

When you borrow through Fundation, APRs start at around 7%–17% — though the maximum APR most businesses will qualify for is 12%. There are no application, origination, annual or prepayment penalty fees. For more established businesses with better credit, Regions Bank may fund your loan directly, with APRs ranging from 1% to 7%. But Regions bank may charge fees that Fundation doesn’t.

You have between 1 year and 1 years to pay back your term loan, depending on how much you borrow. Loans under $50,000 typically qualify for terms of 12 to 24 months. The average loan term is 24 to 36 months.

Other business financing options through Regions Bank

On top of unsecured term loans, Regions Bank also offers the following types of business financing:

  • SBA loans. Regions Bank offers loans backed by the Small Business Administration, typically with more competitive rates than other financing options. Through Regions, your business can apply for SBA 7(a) loans up to $5 million, SBA Express loans up to $350,000 and SBA 504 loans up to $12.5 million.
  • Equipment leasing. Regions Bank offers several programs for financing a wide range of equipment needs, including aircrafts, trucks, medical equipment, furniture and farming equipment.

What makes Regions Bank business loans unique?

Through its partnership with Fundation, Regions Bank is able to offer financing to businesses that might not qualify for a bank loan elsewhere. Fundation works with Regions Bank to help your business qualify for the low rates that Regions offers by reviewing your account every six months. If your business made all of its repayments on time and didn’t have any other trouble with the loan, it could qualify for a lower rate.

Partnering with Fundation also means these business loans are available in more states than Regions has locations — the only place you can’t qualify for a loan as of June 2018 is Nevada.

What are the benefits of a Regions Bank business loan?

  • Quick online application. If you’re applying through Fundation, you can complete and submit your application in a matter of minutes.
  • Six-month reviews. Even if your business doesn’t qualify for the most competitive rate right away, you could qualify for a lower rate after six months just by making on-time repayments.
  • Fair credit OK. Business owners can have a credit score of 600 and still be eligible for a business loan through Regions Bank.

What to watch out for

  • Hard to get in touch with Regions. Regions Bank requires customers to share their Social Security number if they call to ask a few basic questions.
  • Shorter terms for lower amounts. If your business needs less than $50,000, it likely won’t be able to qualify for a term longer than 24 months.
  • Not available in all states. Fundation doesn’t currently offer financing in Nevada.

Compare more business loan providers

Rates last updated October 23rd, 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+.
Credibly Business Loans
Funding to cover business expenses with daily or weekly repayments.
$5,000
$250,000
At least 6 months in business, average $10,000 in monthly deposits.
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+.
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
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+.
Lending Express Business Loan Marketplace
$5,000
$500,000
At least 3 months in business and $10,000+ in monthly revenue. Your business might also qualify if it's been in business at least 6 months with $3,000+ in monthly 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.
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.

Compare up to 4 providers

How do I apply?

For all business loans, you can get started online. And with loans from Fundation, you can complete the application online yourself. Otherwise, a Regions banker will call you within two business days to help you complete your application over the phone.

Eligibility

Make sure you’re eligible for a business loan before you get started on your application. You should:

  • Be at least one year in business.
  • Have a credit score of at least 600.
  • Make at least $50,000 in annual sales.
  • Not operate in Nevada.

Need more than $1 million? Your business will likely need to meet stricter eligibility requirements, like be in business longer and have a higher credit score and annual sales.

Steps to apply

  1. Go to the Regions Bank website and click Small Businesses in the main navigation bar.
  2. Hit Borrow and then Loans and Lines of Credit.
  3. Click the orange Apply Now button.
  4. Hit Continue to agree to leave the Regions Bank website and continue the application.
  5. Select the way your business plans on using the funds and then hit Get Started. For term loans, choose I need funds for business expansion or capital improvement.
  6. Select either Term Loan or Line of Credit, then enter the amount you’d like to borrow and your business’s ZIP code. Hit Get Started.
  7. Follow the directions to complete your application. If you aren’t eligible for a Regions Bank loan, you’ll be directed to the Fundation online application.

If you apply through Fundation, your business can get funds in as little as three business days. Through Regions Bank, it’ll likely take longer.

How to apply step-by-step with screenshots

What documents do I need to apply?

The documents to apply largely depends on your loan amount. Loans under $100,000 typically only require three months of business bank statements. Otherwise, you might need to provide the following documentation:

  • Tax returns. Tax returns give your lender an idea of how much your business makes annually. You could be asked to supply your personal tax returns.
  • Profit and loss statements (P&L). To get a better idea of your business’s cash flow, it might ask to look at your business’s profit and loss statements.
  • Balance sheet. A balance sheet shows your lender how your business is doing financially right now.

I got a business loan through Regions Bank. Now what?

What happens next depends on your lender. If you borrowed through Fundation, then your business would pay back the loan directly to Fundation. If you borrowed directly from Regions Bank, your business pays back the loan to Regions Bank.

If it’s an option, consider signing up for automatic repayments. That way, you won’t need to take the time each month to manually pay back your loan — and won’t accidentally miss any. If you borrowed through Fundation, on-time repayments can help you qualify for lower rates after six months.

Have any questions? Reach out to customer service by calling 800-734-4667 for Regions Bank or 888-398-0085 for Fundation.

Bottom line

Thanks to its partnership with Fundation, Regions Bank can help businesses of all sizes and types get access to funding — even if you’re located outside of the South or Midwest. The application is surprisingly straightforward for a bank, though it can be more involved if you’re looking for more than $1 million.

To learn more about how business loans work and compare your options, check out our business loans guide.

Frequently asked questions

Pictures: lending.regions.com

Anna Serio

Anna Serio is a staff writer untangling everything you need to know about personal loans, including student, car and business loans. She spent five years living in Beirut, where she was a news editor for The Daily Star and hung out with a lot of cats. She loves to eat, travel and save money.

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