Citizens Financial Group is a business-friendly financial institution with a track record of providing financial support to entrepreneurs and business managers to help them expand their operations or acquire capital assets. This lender also assists new entrepreneurs by providing them with the seed capital they need to set up their business from scratch. In addition, Citizens Financial utilizes an express lending platform called the Citizens VantageLink. Through this platform, applicants can apply for their small business loans and have their applications processed within 2-3 business days.
You can borrow as much as $250,000 as a term loan or a line of credit. Furthermore, after the first application stage, their customer service agents will give you a call to fast-track the application process so that your business will get the funds it requires to continue operation or to expand.
Types of Loans offered by Citizens Financial Group
Fortunately for you and many other borrowers out there, there are different loan types offered by Citizens Financial Group. In this section, we review all the small business loans offered by this lender.
Vehicle & Equipment Loans
If you require funds to purchase transport vehicles or equipment, this is the loan for you. The Vehicle and Equipment loan is specially curated to help business owners raise the capital to procure fixed assets. Rather than dip into your income or working capital, you can apply for this loan so as not to place your business at a liquidity risk.
Working Capital Credit Line
The Working Capital Credit Line is another loan for small business owners. Every business requires daily expenses to remain operational, but sometimes, cash flow can become a problem if debtors do not pay their invoices on time. To ensure that you can meet your financial commitment at all times, this is a helpful loan to apply for in desperate times of need.
Standby Letter of Credit
A Standby Letter of Credit by Citizens Financial is a commitment provided by the banker to a borrower promising a certain amount of money as a loan. Once this letter of credit is activated, you can withdraw as much as $250,000 over a stipulated period of time. The good thing about this credit line is that you don't pay interest on the loan outright, but the amount you actually withdraw.
Commercial Real Estate Loans
This loan by Citizens Financial is a special mortgage loan for real estate development or acquisition purposes. If you want to acquire a property for your business, this is the loan you should apply for.
A construction loan is another type of mortgage loan but is specially designed to fund property construction projects.
Multi-family dwelling loans
Multi-family dwelling loans are for small business owners who wish to buy large residential properties for personal use.
An agricultural loan is essentially for agro-business purposes. However, it has flexible features, so you can use the proceeds to fund cultivation projects or equipment procurement.
What other types of financing does Citizens Bank offer?
All the loans listed above are unsecured, but there are more. Here are some other loans offered by Citizens Financial Group.
Business Credit Line
A Business Credit Line is an unsecured loan with a credit limit ranging from $50,000 - $1 million. However, online applicants can only apply for a maximum limit of $150,000. This loan attracts recurring interest as well as an annual loan fee of $150 for loans of $50,000-$100,000. For loans of $100,001 and up to $1 million, the annual fee is 0.3%.
Business/Equipment Flex Loans
This loan is a hybrid loan for general business purposes. It is specially designed for ongoing projects with unpredictable timeframes and project costs. If you want it as a business loan, you can draw withdraw between $10,000-$150,000 within 6 months. After 6 months, if you continue to draw from it, the credit line becomes a term loan that attracts interest.
If you are applying for a loan to procure equipment for your business, you can withdraw between $150,000-$500,000 over a period of 12 months. After a one-year period, it becomes a term loan that attracts interest.
Citizens Financial offers a special SBA loan to eligible borrowers who meet certain criteria laid down by the banker. There is no fixed amount under this plan. Rather, the banker will evaluate your creditworthiness and determine the amount you are eligible for. Furthermore, the interest rates you pay will depend on the principal amount you withdraw and the loan tenure, among other factors.
Another small business loan offered by Citizens Financial Group is a business mortgage loan for businesses who wish to
- Find the acquisition of a property
- Renovate an existing property
- Refinance a property
This loan has a maximum amortization of 25 years and a flexible tenure of 5-10 years.
Business Credit Card
Citizens Financial Group also issues credit cards to holders of checking accounts and a few other business accounts. If you have an active account with them, you can apply for a business credit card. The cards come with varying credit lines that you can draw from. Note that you don't pay interest on the approved amount, only amounts that you actually withdraw. The funds from this small loan can be used to meet daily business expenses.
What Lending Criteria does the bank have
Application is free, but only eligible applicants will qualify for a Citizens Financial Group small business loan. To qualify for this loan, you must
- Have been in business for at least 12 months
- Be active in a state where there is an active Citizens Financial Group branch
- Must be over 18 years old
- Positive debt/income ratio
Here are the States where Citizens Financial Group is active
Delaware – Connecticut – Ohio – New York – New Jersey – Massachusetts – Michigan – Rhode Island – Pennsylvania – Michigan – Vermont – New Hampshire
Note: Note that if you are ineligible for a Citizens Financial Group loan, all hope is not lost. You can still get support from FUNDATION 1, a 2nd tier loan platform that provides alternative loan instruments to micro and small-scale businesses.
Citizens Financial Group Interest Rates, Fees & Loan Options
The interest rate attached to any loan option you choose will depend on the type of loan you apply for. However, the base rate is 4.75% and higher depending on several other factors. Also, the 4.75% rate is for loan amounts of $20,000-$150,000 for up to 84 months. If you want to apply for an amount above $150,000, you will have to communicate your desires directly to an official who will prepare a special package for you; however, the interest rate and repayment plan will change.
Note: Interest rates are never static so before you sign off on a small business loan, make sure you visit the Citizens website for the current rate at the time of your application. Also, you can use an online calculator to evaluate the total cost of the loan throughout the loan tenure, but note that the figures you generate are only an estimated figure and may not reflect the exact cost of the loan if and when it's approved.
Citizens Financial Group Application
To apply for any of the small business loans on offer, you will have to visit the official website to fill the loan application form. Pick the loan you want and provide the required information. You will be asked to provide
Identification: Your identification verification is an important step to getting a loan for your small business. You will be asked to provide a government-issued ID card like a passport or a Driver's License. The ID card must clearly show your name, date of birth, and picture.
Legal document: Some other legal documents will be requested of you, such as your
Business Name: This document will be used to ascertain if your business is indeed a legal entity.
Business ID Number: For tax purposes and to evaluate the income of your business over a certain period of time.
Annual Sales: Any document to show proof of business income like a sales invoice.
Annual Net Profit: Documents to show proof of your annual net profit over a one-year period. Documents like a Profit & Loss Account, Balance Sheet, and a Statement of Account covering the last one year will be requested.
Other documents: The lender may request any other document of importance to validate your eligibility.
NB: Please note that all loan applications are done online via the lender's portal unless in special cases when your physical presence is requested.
Summary of Citizens Financial Group Loan Options
Citizens Financial operates a flexible loan application system, mostly online. Borrowers can get up to $250,000 as a loan for a maximum period of 7 years. They also enjoy a low interest rate starting from 4.75% and above depending on the loan facility, amount, and tenure.