Top Commercial Loan Lenders: A Guide for Businesses

Jul 06, 2024

Understanding Commercial Loans

Securing a commercial loan is a significant step for any business looking to expand, purchase property, or improve operations. Choosing the right lender is crucial, as it can impact the terms, rates, and overall experience of obtaining the loan. This guide outlines some of the top commercial loan lenders, their offerings, and what businesses should consider when selecting a lender.

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#### 1. **Traditional Banks**

Traditional banks are often the first choice for businesses seeking commercial loans due to their stability, wide range of services, and competitive interest rates. They typically offer various loan types, including term loans, lines of credit, and commercial mortgages.

**Top Banks**:
- **Wells Fargo**: Known for its extensive network and comprehensive loan options, including SBA loans.
- **JPMorgan Chase**: Offers competitive rates and personalized loan solutions tailored to business needs.
- **Bank of America**: Provides a variety of business loan products with flexible terms and repayment options.

- **Competitive Rates**: Lower interest rates compared to online lenders.
- **Wide Range of Services**: Access to other financial services like business checking accounts and credit cards.
- **Established Relationships**: Long-standing customer relationships and personalized service.

- **Stringent Requirements**: Often require excellent credit and extensive documentation.
- **Longer Approval Process**: Approval and funding can take longer compared to online lenders.

#### 2. **Credit Unions**

Credit unions are member-owned financial cooperatives that often provide favorable loan terms and personalized service. They are a good option for businesses looking for a more community-focused lender.

**Top Credit Unions**:
- **Navy Federal Credit Union**: Offers competitive rates on business loans, particularly for military members and their families.
- **State Employees' Credit Union (SECU)**: Provides a range of commercial loan products with attractive terms for members.

- **Lower Fees and Rates**: Typically offer lower interest rates and fees compared to traditional banks.
- **Personalized Service**: More personalized customer service due to their smaller size and community focus.
- **Member Benefits**: Profits are returned to members in the form of lower rates and fees.

- **Membership Requirements**: Must meet membership criteria, which can be restrictive.
- **Limited Services**: May not offer as many loan products or services as larger banks.

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#### 3. **Online Lenders**

Online lenders have become increasingly popular due to their speed, convenience, and flexible lending criteria. They are particularly beneficial for small businesses and startups that may not qualify for traditional bank loans.

**Top Online Lenders**:
- **Lendio**: A marketplace that connects businesses with multiple lenders to find the best loan options.
- **Kabbage**: Known for its quick approval process and flexible lines of credit for small businesses.
- **OnDeck**: Offers term loans and lines of credit with a fast application process and funding.

- **Quick Approval**: Faster application and approval process, often with funding in as little as 24 hours.
- **Flexible Requirements**: More lenient credit and documentation requirements compared to traditional banks.
- **Convenience**: Entire application process can be completed online.

- **Higher Interest Rates**: Typically have higher interest rates compared to traditional lenders.
- **Limited Face-to-Face Interaction**: Lack of personal relationship with a banker.

#### 4. **Small Business Administration (SBA) Lenders**

The SBA partners with various lenders to provide loans with favorable terms and lower interest rates, backed by government guarantees. These loans are ideal for small businesses looking for long-term, affordable financing.

**Top SBA Lenders**:
- **Live Oak Bank**: Consistently ranks as one of the top SBA lenders, offering a wide range of SBA loan products.
- **Huntington National Bank**: Known for its strong SBA lending program and customer service.
- **Newtek**: Specializes in SBA loans and provides additional business services.

- **Lower Interest Rates**: Competitive rates due to SBA backing.
- **Longer Repayment Terms**: Extended terms make monthly payments more manageable.
- **Lower Down Payments**: Often require lower down payments compared to traditional loans.

- **Complex Application Process**: More paperwork and longer approval times due to SBA requirements.
- **Eligibility Requirements**: Must meet SBA size standards and other criteria.

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#### Conclusion

Choosing the right commercial loan lender involves considering your business's specific needs, financial situation, and the type of loan you require. Traditional banks, credit unions, online lenders, and SBA lenders each offer distinct advantages and potential drawbacks.

For personalized advice on selecting the best commercial loan lender and navigating the loan application process, contact Atlantic Commercial Lending, your trusted partner in commercial mortgage brokerage.


Atlantic Commercial Lending is a Licensed Commercial Mortgage Brokerage with an NMLS ID #2429887.