Truist Business Loans: 2023 Review
 | Starting rate: Not publicly disclosed. Best for: Small business owners who want the experience of working with a traditional bank and traditional lending products, but don’t need to borrow millions. |
Pros and cons of Truist
| Pros | Cons |
|---|---|
Truist works with small business owners, with no set minimum time-in-business or annual revenue requirements. Wide suite of traditional lending products. More than 100% financing available for auto loans and commercial vehicle and equipment loans. | Relatively small loan amounts across most categories. Lender is not transparent about its rates or minimum credit score requirements. No SBA loans available. There can be balloon payments on secured term loans and commercial real estate loans. |
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Truist small business loans review
Truist is the end result of the 2019 merger between SunTrust and BB&T Banks. It’s a brick-and-mortar bank offering traditional small business lending products, like term loans, lines of credit, vehicle and equipment financing, and real estate loans. It notably does not facilitate SBA lending. Maximum loan amounts are sometimes small at Truist, but if you have $2,000,000 in annual revenue, you may qualify for their commercial lending products with higher loan amounts.
Who is Truist for?
- Those who are borrowing relatively small amounts. Max loan amounts cap out at $250,000 at Truist — you won’t be able to borrow millions.
- Those who want traditional lending products. You’ll find a wide array of traditional lending products — like term loans and lines of credit — but you won’t find last-minute financing products like merchant cash advances or invoice factoring.
- Those who aren’t seeking SBA funding. Truist is not an SBA lender.
Truist small business financing at a glance
| Product | Loan amounts | Repayment term | Estimated APR range | Fees |
|---|---|---|---|---|
| Unsecured term loan | $3,500 to $100,000 | Up to 60 months | Not disclosed | Origination fee of 0.50% or $100 — whichever is greater. |
| Secured term loan | $3,500 to $250,000 | Up to 60 months with 180 month amortization | Not disclosed | Origination fee of 0.50% or $100 — whichever is greater. |
| Unsecured Line of credit | $3,500 to $100,000 | 12 to 36 months | Not disclosed | Origination fee of 0.50% or $100 — whichever is greater. |
| Secured line of credit | $3,500 to $250,000 | Up to 60 months | Not disclosed | Origination fee of 0.50% or $100 — whichever is greater. Additional closing costs. |
| Auto small business loans | $3,500 to $250,000 | Up to 75 months | Not disclosed | Origination fee of $100. |
| Commercial vehicle and equipment loans | $3,500 to $250,000 | Up to 84 months | Not disclosed | Origination fee of 0.50% or $100 — whichever is greater. Additional closing costs. |
| Real estate loans | $3,500 to $250,000 | Up to 180 months 180 month amortization on residential loans 300 month amortization on commercial loans | Not disclosed | Origination fee of 0.50% or $100 — whichever is greater. Additional closing costs. |
Term loans
Truist offers two different types of term loans: secured and unsecured. Both start at $3,500, have terms up to 60 months and come with an origination fee of 0.50% or $100 — whichever is greater.
But unsecured term loans max out at $100,000, while you can borrow up to $250,000 if your loan is secured. Secured business loans also come with a potential 15-year amortization period, which means you’d have three choices at the end of your initial, up-to-60-month term:
- Pay off your remaining balance in full.
- Renew your loan with Truist at a new interest rate.
- Refinance remaining balance with another lender after the initial term is over.
This is known as a balloon loan, and there are some risks involved. Truist may choose not to extend a new loan, which means you’d only have the options of refinancing the business loan elsewhere or owing the remaining balance in full after the initial term expires.
Line of credit
Truist also offers both secured and unsecured lines of credit. Both of these lines of credit start at $3,500, and origination fees are the greater of either 0.50% of the amount you borrow or $100. Every month, you’ll make either interest-only monthly payments or pay 1.5% of the total balance due.
Unsecured lines of credit max out at $100,000, while you can get a secured line up to $250,000. If you go the secured route, there may be additional closing costs, including:
- Title insurance premiums
- Attorney fees
- Evaluation fees
- Flood certification
- Recording fees
Small business auto loans
Truist offers small business auto loans with 110% financing available. The extra 10% can be used to finance soft costs like equipment add-ons, delivery fees, taxes, and tag and licensing costs. Loan amounts are available from $3,500 to $250,000, and terms are up to 75 months. You will also incur an origination fee of $100.
Commercial vehicle and equipment financing
Commercial vehicle and equipment loans also come with 110% financing available at Truist. The extra 10% can cover the same types of soft costs as auto loans. It’s important to note that soft costs can only be applied when you’re financing passenger vehicles, commercial vehicles, agricultural equipment or construction equipment.
Loans are available from $3,500 to $250,000 with terms of up to 84 months. In addition to origination fees of the greater of 0.50% of the loan amount or $100, you may also pay closing costs for evaluation and recording fees.
Real estate loans
Truist offers both residential investment property loans and commercial real estate loans to small businesses. Your loan-to-value ratio on these products can be up to 85%. Loan amounts are $3,500 to $250,000, and both real estate loan types have initial terms of up to 180 months. There is an origination fee of 0.50% or $100 — whichever is greater — and you are likely to incur closing costs for things like:
- Title insurance premiums
- Attorney fees
- Evaluation fees
- Flood certification
- Recording fees.
With a residential loan, you will be paid-in-full at the end of your up-to-15-year term. But for commercial loans, it is possible to get an amortization period of up to 25 years, which means it’s a balloon mortgage. At the end of your 15 year term, you’ll still owe 10 years of payments, which you can pay all at once or refinance through Truist or another lender.
Truist borrower requirements
| Minimum annual revenue | None |
| Minimum time in business | None, but if you’ve been in business less than two years, there might be extra paperwork requirements. |
| Minimum credit score | Not publicly shared |
Truist works individually with each small business to determine if it’s in strong enough financial standing to qualify for a small business loan. For that reason, it doesn’t have explicit minimum annual revenue or time-in-business requirements, but it does note that businesses younger than two years might have additional paperwork burdens.
If you need a loan larger than $250,000, Truist does have a separate suite of commercial lending products. But it’s less likely that you’ll qualify for them as a small business owner, as you’ll need at least $2,000,000 in annual revenue.
Required documents
To secure a loan or line of credit, you will need to fill out Truist’s small business application. Be sure to be prepared with these data points and documents:
- Basic info about your business and its operations.
- Your name, address, phone number and Social Security number.
- Two years of employment history.
- Information regarding your personal income, debts and taxes.
- If you’re getting a secured lending product, information about your collateral
- Name and contact information for any co-borrowers or guarantors
- Name and contact information for anyone who owns a 20% or more stake in the business
Remember — if you’ve been in business for less than two years, the paperwork requirements might be even higher.
Alternatives to Truist
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Truist vs. PNC
If you want a commercial real estate loan over $250,000 — or an SBA loan at all — you’ll have to go with PNC over Truist, as Truist doesn’t offer them as a part of their small business lending line. You can also get much larger secured term loans and lines of credit with PNC — $3,000,000 versus Truist’s $250,000. All other products have similar limits, though it’s hard to compare the lenders outside these parameters as neither share their rates.
Truist vs. U.S. Bank
If you want a larger unsecured term loan, Truist’s max loan amounts are $50,000 higher than U.S. Bank’s. Maximum loan amounts are identical for all other lines of credit and term loans, but Truist lends more for equipment financing — $250,000 versus U.S. Bank’s $1,000,000. U.S. Bank will lend significantly more for commercial real estate: It lends up to $10,000,000, while Truist caps out at $250,000. U.S. Bank also offers SBA products while Truist does not.
U.S. Bank is far more transparent about its rates, but unfortunately it’s hard to compare the lenders on this metric, as Truist doesn’t share its own. Your best bet may be applying to all three lenders to see who gives you the best offer.