Large banks are often reluctant to offer small businesses loans, as the risk is too great. Most small businesses are either new in the industry or struggling to grow, which is why they will be unable to pay back the loan. In addition, small businesses usually have a poor credit history and credit score.
However, PNC financial services offer a wide variety of small business loans. We will now discuss an overview of the small business loans that PNC Financial Services offer.
Small Business Loan
- Amount: 20,000 to 100,000 dollars
- Term: Monthly payments, the maturity date is fixed (sixty months)
- Interest Rates: Fixed rates
- Payment: Deducted from the PNC business checking account on a monthly basis
- Collateral: Not required
Benefits of the PNC Small Business Loan
- The application process is streamlined and straightforward
- Unlike most banks, no collateral is required
- Funds can be accessed easily
- The term of the loan is fixed
Types of Loans Offered by PNC Financial Services
1. Secured Small Business Loans
The PNC secured small business loans will help the business expand and enable you to buy assets that will help you secure working capital for the business at a competitive interest rate.
- Amount of the Loan: 100,001 to 3 million dollars
- Interest Rate: Both fixed and variables rates based on WSJ Prime
- Loan term: Seven years
- Payment: Deducted from the PNC business checking account on a monthly basis
- Collateral: Collateral is required in the form of fixed business assets, inventory, and machinery.
Benefits of Secured Small Business Loans
- Save Money: Business assets can be used to secure cheaper interest rates and longer terms for unsecured loans.
- Easier Payments: Payments will be deducted at the end of the month from the PNC business checking account.
- Cover Borrowing Needs: The amount of these loans will help you meet your borrowing needs and other debts.
- Fixed-term Loan: Gives you a manageable payoff schedule.
2. Small Business Commercial Real Estate Loans
This small business Commercial real estate loan by PNC Financial Services will help the business in refinancing the owner-occupied property or real estate.
- Amount of the Loan: 100,001 to 3 million dollars
- Interest Rate: Both fixed and variables rates (Prime rates)
- Loan term: Ten years (twenty-year amortization)
- Payment: Deducted from the PNC business checking account on a monthly basis
- Collateral: Equity in commercial real estate owned by the owner
Benefits of Secured Small Business Loans
- Cover Borrowing Needs: The amount of these loans will help you meet your wide range of mortgage needs and maturity terms.
- Fixed-term Loan: Gives you a manageable payoff schedule.
- Easier Payments: Payments will be deducted at the end of the month from the PNC business checking account. The owner doesn't need to submit checks or make unnecessary trips to the bank.
3. Small Business Vehicle Financial Loan
A business requires a reliable transportation partner to deliver the product to the consumers easily. This loan will help you restructure or expand your transportation requirements.
- Amount of the Loan: 100,000 to 250,000 dollars
- Interest Rate: Fixed and competitive interest rates
- Loan term: 72 months
- Payment: Deducted from the PNC business checking account on a monthly basis
- Collateral: New or used passenger cars
Benefits of Secured Small Business Loans
- This loan finances your everyday vehicle needs
- Fixed rates are competitive, which helps keep the payment stable, and no fluctuation takes place.
- 100 % financing of the total invoice amount.
4. Small Business Line of Credit
This small business line of credit provided by PNC financial services is unsecured and offers 20,000 to 100,000 dollars.
- Amount of the Loan: 20,000 to 100,000 dollars
- Ease to access: Funds can be transferred to a PNC account through phone or online banking and can be accessed by drawing a check against the PNC account.
- Interest Rate: Variable rates based on Prime interest rates
- Payment: 1.5 % of the total balance, usually amounting to 100 dollars.
- Collateral: None
- Extra added value: A credit line can be eligible for overdraft protection for your PNC account
- Annual Fee: Fee of 175 dollars
Benefits of Secured Small Business Loans
- The straightforward process of loan application.
- No collateral.
- Funds are accessible.
5. Secured Small Business Line of Credit
This small business line of credit provided by PNC financial services is secured and is perfect for growing the short-term working capital of the business. The borrower also provides the business collateral.
- Amount of the Loan: 100,001 to 3 million dollars
- Ease to access: Funds can be transferred to a PNC account through phone or online banking and can be accessed by drawing a check against the PNC account.
- Interest Rate: Variable rates based on Prime interest rates
- Payment: Payment is 1.5 % of the total balance, usually amounting to 100 dollars.
- Added Value: A credit line can be eligible for overdraft protection for your PNC account
- Collateral: Only non-real estate assets
- Annual Fee: 0.25 % of the credit line.
Benefits of Secured Small Business Loans
- Increased flexibility of credit: Collateralized lines have a cheaper interest rate, and credit limits are high.
- Accessible: Can be accessed by phone, online, or by visiting the bank
- Payments: Deducted from the PNC business checking account on a monthly basis
- Peace of Mind: You can use the credit line to provide overdraft protection for your PNC account.
PNC Financial Services Interests, Fees, and Loan Options
We have identified six types of loans that PNC Financial Services offer:
Small Business Loan
- Interest Rate: Fixed Rates
- Fees: Unknown
Secured Small Business Loan
- Interest Rate: Variable and Fixed Rates (WSJ)
- Fees: Unknown
Small Business Vehicle Financial Loan
- Interest Rate: Fixed and competitive rates
- Fees: Unknown
Small Business Commercial Real Estates Loans
- Interest Rate: Fixed and Variable Rates (Prime)
- Fees: Unknown
Small Business Line of Credit
- Interest Rate: Variable rates based on Prime rates
- Fees: Annual fee of 175 dollars
Secured Small Business Line of Credit
- Interest Rate: Variable rates based on Prime rates
- Fees: 0.25 % of credit line
What Lending Criteria does PNC Financial Services Have?
- Personal and Business Credit History: A credit history needs to be provided by the owner of two types: personal and business. The credit history should not be more than five years old.
- If the business has too many debts, then the lender might not approve the loan. Therefore, the owner should have the following information: Foreclosures, Charged-off accounts, and collection accounts.
- Years in Business: Generally, banks and other lenders are willing to lend loans to companies that have been active for at least three years under the same ownership.
- Business Financial Trends: The business trend must be going upwards for it to convince the lender that it is eligible for a loan. An upward trend also means high revenue, gross profit, and net profit.
- Debt Service Coverage of the Business: The total earnings before the deduction of amortization, taxes, and depreciation.
- Debt-to-Income Ratio: The personal debt payments of the owners deducted from the income. The final amount should at least be 60 % of the amount required to pay taxes and expenses.
- Leverage: The total liabilities of the business in proportion to its income. Profitable companies have a higher net worth than liabilities.
- PNC Payment History: If the business has borrowed loans from PNC before, there should be no remaining payments.
- Owner Net Worth: This will show the owner's ability to pay the debt if the business fails.
- Collateral: Collateral is a secondary repayment option. Lines of credit can be secured by the business's current assets and should have a respectable market value to pay off the credit line amount. In addition, the loan can be collateralized with assets such as equipment and real estate that are marketable.
PNC Financial Services Application
Before you ask for a loan, there are a few things that need to be understood:
- You can apply for the loan online or by visiting the bank
- You will need to fill up an application form
- Check and see if you have a special loan offer code
- You should know the type of loan you are interested in
- You should know the amount you want
- You will need to provide the following details: Name and address of the business, Year the business was established, tax ID number, number of staff members, and annual sales.
- Information about the Business owner: Name, permanent address, % of ownership, historical info, passport details, social security number, Driver's license, photograph, and financial details.
- The owner should properly organize all the important details before submitting them.
- The owner should also keep copies of all the latest documents and bank statements.
For more information, log onto the website of PNC Financial Services.
Summary of PNC Financial Services Loan Options
In this article, we thoroughly discussed six types of loans that the PNC financial services offer. They are:
- Small business loans
- Secured small business loans
- Small business vehicle financial loan
- Small business commercial real estate loan
- A small business line of credit
- Secured Small business line of credit
All the loans that we have discussed come with fixed or variable interest rates; their terms are flexible, and their payments are also low. However, before applying for the loan, make sure that you have all the necessary details and, if possible, contact the PNC financial services. There is also a small annual fee for a Small business line of credit and secured line of credit.