TD Bank Business Loans Review 2024 – Forbes Advisor

TD Bank’s small business loans or lines of credit may be right for your business if you:

• Have a new business. TD Bank requires one year of your most recent business tax returns for loan requests between $100,000 and $250,000. However, you need at least three years of business tax returns if you want to borrow $250,000 or more.
• Want in-person banking. TD Bank has over 1,100 locations along the East Coast and you can speak with a lending specialist over the phone or in-person.
• Need large loan amounts. TD Bank offers small business loans from $10,000 to $1 million and lines of credit from $25,000 to $500,000. It will also review your application for SBA guaranteed loan options, which typically go up to $5 million.
• Are a healthcare practitioner: In addition to its small business loans and lines of credit, TD Bank also offers special financing for dentists, veterinarians, physicians and eye care professionals. These loans can go up to $12 million.

On the flip side, TD Bank probably wouldn’t be the best lender for your business if you:

• Don’t live within the bank’s footprint. To borrow from TD Bank, you’ll need to live in one of the following states or Washington, D.C.: Connecticut, Delaware, Florida, Maine, Maryland, Massachusetts, New Hampshire, New Jersey, New York, North Carolina, Pennsylvania, Rhode Island, South Carolina, Vermont or Virginia.
• Are looking to avoid loan fees. TD Bank may charge origination and packaging fees on your loans, which could add to your borrowing expenses.
• Want an online-only application. Although you can apply online for a TD Bank small business loan up to $250,000, you’ll need to apply in person for larger amounts.

TD Bank offers the following financing options for small businesses:

• Term loans. TD Bank’s business loans range from $10,000 to $1 million with repayment terms of one to five years. Interest rates are fixed for the life of the loan.
• Small business lines of credit. The bank’s lines of credit range from $25,000 to $500,000 with variable interest rates.
• Commercial real estate loans and mortgages. Businesses can also access loans to buy or refinance commercial real estate. These loans come with an amortization period of up to 20 years.
• Healthcare practice lending solutions. Dentists, veterinarians, eye care professionals and physicians can access up to $12 million to finance their practices, plus working capital. Physicians also have access to financing for practice mergers and working capital lines of credit.
• SBA loans. TD Bank can connect you with SBA 7(a) loans, 504 loans and Express loans, as well as USDA loans. When you apply for small business financing, the bank can notify you if you qualify for any SBA-guaranteed loan options.

Featured Partner Offers

Loan amounts

$5,000 to $250,000

Loan amounts

$10,000 to $500,000

APR

Buy rates start at 1.11%

Loan amounts

$6,000 to $250,000

TD Bank’s business loans can be used for various business costs, such as the purchase of equipment or vehicles, expansion or renovation of your business or for working capital.

You can choose repayment terms between one and five years with a fixed interest rate. These loans are typically secured by collateral, such as equipment, inventory or cash. TD Bank’s lines of credit are also secured, though the collateral is usually cash or accounts receivable.

To qualify for a TD Bank business loan, your business needs to operate in one of the states that TD Bank operates in or Washington, D.C. You’ll also need to provide collateral to back your small business loan or line of credit, or provide a down payment if you borrow an SBA loan.

TD Bank doesn’t disclose minimum revenue or credit score requirements. However, it asks to see a year of your business’s most recent tax returns for loan requests up to $250,000 and three years of tax returns (plus two years of personal returns) for higher amounts.

You can apply online for a TD Bank business loan or line of credit from $25,000 to $500,000 . For larger amounts, commercial real estate loans and SBA loans, you’ll need to apply in person at a TD Bank location. You can download the loan application on the bank’s website.

You’ll need to provide the following documents when you apply:

• Business name and certificate or registration
• Association bylaws or copy of minutes of last meeting with new officers
• LLC operating agreement
• One to three years of business tax returns
• Personal financial statement (if applicable)
• Entity guarantee form (if applicable)

For requests over $250,000, you’ll also need to provide an interim year-to-date business financial statement, accounts receivable aging report and two years of personal tax returns.

TD Bank doesn’t fare particularly well on consumer review sites TrustPilot or the Better Business Bureau. The bank receives a low rating of 1.4 and 1.1 stars out of five, respectively, on these sites. However, the reviews are not focused on TD Bank’s small business financing products but rather cover all of the bank’s offerings.

We reviewed TD Bank based on 16 data points in the categories of loan details, loan costs, eligibility and accessibility, customer experience and the application process. We rated TD Bank based on the weighting assigned to each category:

• Loan cost. 35%
• Loan details. 25%
• Customer experience. 20%
• Eligibility and accessibility. 10%
• Application process. 10%

Within each major category, we also considered several characteristics, including available loan amounts, repayment terms and applicable fees. We also looked at minimum credit score and time in business requirements and the geographic availability of the lender. Finally, we evaluated TD Bank’s customer support tools, borrower perks and features that simplify the borrowing process—like online applications, prequalification options and mobile apps.

To learn more about how Forbes Advisor rates lenders, and our editorial process, check out our Loans Rating & Review Methodology.