TD Bank small business loans review
Fixed payments can help get your business off the ground.
finder.com’s rating: 3.18 / 5.0
- Best for established businesses that want to fund a large, long-term expense.
- Pick something else if you don't live near a TD Bank branch.
|Product Name||TD Bank small business loans|
|Loan Term||36 to 60 months|
|Requirements||Have assets to use as collateral, realistic business plan, talk with a loan officer in person|
Anna Serio is a trusted lending expert and certified Commercial Loan Officer who's published more than 950 articles on Finder to help Americans strengthen their financial literacy. A former editor of a newspaper in Beirut, Anna writes about personal, student, business and car loans. Today, digital publications like Business Insider, CNBC and the Simple Dollar feature her professional commentary, and she earned an Expert Contributor in Finance badge from review site Best Company in 2020.
TD Bank offers secured and unsecured term loans that are best for growing a company that’s already established. Use it to finance a business expansion, buy equipment or vehicles or even refinance existing loans. Unlike many banks of its size, it also offers an online application for loans under $100,000. And it’s more transparent about most product details.
It doesn’t disclose rates online, but that’s typical of a large, international bank — which also tend to offer the lowest rates available. It’s not for amateurs. If this is your first, or even second, time applying for a business loan, consider another option that’s easier to qualify for.
How much will this loan cost me?
TD Bank doesn’t disclose how much its term loans cost — they vary depending on your location. But you can find out what rates and fees are available by contacting a loan specialist at a TD Bank branch in your area. Typically business loans come with rates starting at around 6% APR.
Loans at TD Bank start at $10,000 and run as high as $1,000,000, with terms from 3 years to 5 years. Use the calculator below to get a rough estimate of how much your loan might cost.
Business loan calculatorSee how much you'll pay
|Loan terms (in years)|
How it works
Generally, the most competitive rates go to businesses with high, positive cashflow, few debts and owners must have a credit score of at least 760. Backing your loan with personal and business assets can also help you qualify for a lower rate and higher loan amounts.
What do I need to qualify?
You must be located in a state where TD Bank operates. While it doesn’t specify any hard requirements for its business loans, you’ll have an easier time qualifying if you have an excellent credit score and have been in business for at least three years.
While you need to have a TD Bank business checking account to qualify for a line of credit through this lender, it’s unclear if that also applies to term loans.
Where does TD Bank operate?
TD Bank offers its small business loan products in these states:
- North Carolina
- New Hampshire
- New Jersey
- New York
- Rhode Island
- South Carolina
- Washington, DC
What do I need to apply?
You need to provide the following documents and information at a minimum when you apply for a TD Bank business loan:
- Legal business name and address
- Employer identification number
- Social Security number
- Valid, state-issued ID
- Contact information for each owner with more than a 10% stake in the company
- Incorporation or business formation documents
- Personal financial statement for all owners
Loans over $100,000 may require additional documents, like year-to-date financial statements and up to three years of business tax returns and two years of personal tax returns.
What industries does TD Bank work with?
TD Bank doesn’t specify which industries qualify for its loans. But banks typically don’t work with companies that lenders consider to be high risk. If your business has struggled to qualify for a loan in the past because of your business’s industry, you might want to consider other options.
What other types of financing does TD Bank offer?
In addition to secured and unsecured term loans, your business can also find the following products at TD Bank.
|Loan||How it works||Amounts||Terms||Type of interest rate|
|Line of credit||Draw cash up to your credit limit as needed for working capital.||$25,000–$500,000||Revolving||Variable|
|SBA 7(a) loan||Government-backed loans for most business uses for businesses that don’t have enough assets for a TD Bank loan or want a long term.||Up to $5 million||Up to 25 years||Fixed|
|SBA 504 loan||Government-backed loans to purchase real estate or equipment.||No limits for first mortgage; second mortgages are capped at $5 or $5.5 million, depending on the industry||Up to 20 years with 25-year amortizations||Fixed|
|Commercial mortgage||Funding for buying property and refinancing commercial real estate loans.||Up to $1 million||60-month terms with 20-year amortization||Fixed|
Pros and cons
TD Bank might offer a good deal to an established business. But weigh the costs and benefits before you make a decision.
- Loans up to $1 million
- Online application available for loans up to $100,000
- Secured and unsecured loans
- More transparent about product details than other large banks
- No loans under $10,000
- Doesn’t disclose rates online
- No online application over $100,000
- Must be located near a branch
See other top business loan options
Select your annual revenue, time in business and credit score range to see how other lenders compare to TD Bank.
Is TD Bank legit?
Yes, TD Bank is an international bank. It’s a member of the FDIC and an equal housing lender, meaning that it meets tighter federal standards than your average online lender. It’s also more transparent than your typical bank of its size — many don’t provide information about loan amounts, terms or any other product details online.
And it takes steps to protect your information. For example, TD Bank’s website uses transport layer security (TLS) or secure socket layer (SSL) protection to safeguard your banking information from hackers.
Do TD Bank business loans get good customer reviews?
|BBB customer reviews||1 out of 5 stars, based on 157 customer reviews|
|Trustpilot Score||2.4 out of 5 stars, based on 7 customer reviews|
|Customer reviews verified as of||02 July 2020|
TD Bank gets mostly negative customer reviews — though a large portion are from nonbusiness customers. Most reviews are complaints about a lack of quality customer service. And customers also sometimes struggle to use its online services or complain about the slow turnaround time on transactions.
How do I apply?
You can apply for a loan of less than $100,000 online by following these steps.
- Visit TD Bank’s website and select Small Business in the top navigation bar.
- Hover over Products and select Loans and lines of credit.
- Scroll down and click the orange Apply now button.
- Select the type of small business loan you want to apply for and hit Next.
- Review the documents and information you need to submit and hit Next to get started on the application.
- Follow the directions to provide information about yourself, other business owners and your business.
- Review your application and submit it for review by TD Bank.
What happens after I apply?
TD Bank will call you within two business days to follow up on your application. In some cases, you may need to submit additional documents or information. Otherwise, TD Bank will send you an offer, which you should review before signing.
How do repayments work?
TD bank loans come with fixed monthly repayments. You can find out how much you owe and when it’s due by looking at your loan contract. Consider setting up automatic payments from a TD Bank account to avoid missing a repayment.
Reach out to your branch if you have any questions or concerns about your account.
Find out if TD really offers the best deal by comparing the rates and terms of other business lenders.
Business loan ratings
★★★★★ — Excellent
★★★★★ — Good
★★★★★ — Average
★★★★★ — Subpar
★★★★★ — Poor
We rate business loan providers on a scale of 1 to 5 stars based on factors like transparency, costs and customer experience. We don’t take into account elements like eligibility criteria, state availability or payment frequency — we save that for our reviews.
Read the full methodology of how we rate business loan providers to get a better picture of what goes into each star rating.