Regions financial corporation offers small business loans and lines of credit to customers across the South, Midwest and Texas. It is a member of the S&P 500 Index and is poised to assist small business owners with access to much-needed financing options. With one of the best interest rates, ease of application and flexibility of repayment, they are one of the best lenders for small business owners.
Types of Loans offered by Regions Financial Corporation
Regions financial corporation fully supports the speedy growth and expansion of small businesses. It demonstrates this by offering a wide range of financing options for small business owners. These include:
Traditional small business loans
This type of loan is one that you can use for one-time upfront purchases. A traditional loan is the most common and easily accessible type of loan offered by Regions Financial Corporation. For the traditional loan, you get funds in a lump sum and pay a fixed amount every month until the completion of payment. It is basically the benchmark for comparing other financing options offered by this lender.
A business line of credit
This type is a bit different from traditional loans. With the business line of credit, you can borrow funds, repay and borrow again. You can borrow little or large amounts of funds at any given time as long as you are within the available credit limit. With the business line of credit, your monthly payment amount is adjusted based on the balance owed. This is the best source of funding for your business’s emergency need. Fortunately, it requires no collateral.
Agriculture loans and line of credit
Farm-related small businesses will find this type of loan very appropriate. Regions financial corporation offers financing for the purchase of farmland and equipment through agriculture loans. In addition, agriculture lines of credit can be utilised for farm-related operating expenses. For this type of loan, the branch banker at Regions may partner with a specialist banker on your application.
Working capital loans
A working capital loan is the most suitable for inventory financing. Regions financial corporation also offers this type of credit for accounts receivable (money owed to the small business by its customers). As a small business owner, you can apply for this type of loan if you have difficulty paying bills. You can also apply for it if you need financing for everyday operations.
Vehicle and Equipment loan
This type of loan is the best to apply for to purchase an income-producing vehicle for your small business. More so, Regions financial corporation offers this financing option for the purchase of essential equipment for your business.
Customized financing options
Every small business is unique, so are its financial needs. Regions financial corporation offers customized financing options that perfectly suit the different needs of various small businesses. For this type of loan, the branch banker at Regions may partner with a specialist banker on your application. This partnership is based on the application amount or application complexity.
Small business real estate loan
With this type of loan, Regions financial corporation offers financing options for your business’s real estate. Refinancing or construction of real estate for the expansion of your small business is easier with this loan. You can also use this real estate loan to purchase a property to speed up the growth of your business. Providing collateral while applying for this loan increases the likelihood of loan approval.
Visa business credit card
The visa business credit card offers you the flexibility of getting a cash advance. This enables you to pay bills to vendors and service providers. In addition, this business credit card does not attract an annual fee. Regions financial corporation offers you this type of financing to be used for your business’s everyday expenses.
Visa enhanced credit card
The business enhanced credit card also does not come with an annual fee. With this business enhanced credit card option, your business can earn rewards on qualifying purchases. All your business cash advances, purchases and bill payments can be put on this card.
Other financing options offered by Regions financial corporation
This section explores other loans offered by this lender. These include:
SBA 504 loan
The SBA 504 loan can be used for the purchase of fixed assets. These include assets such as real estate, equipment and machinery. The lender is offering loans to the tune of $6.25 million. Certified Development Companies (CDCs) which are non-profit organizations certified by the SBA, also offer an additional $5 million. Thus, along with borrower injection of $1.25 million, the total amount of funds small businesses have access to from this loan program stands at $12.5 million. The loan terms for the Regions financial corporation SBA 504 loan is 7 years for equipment and ten years for real estate with up to 25–year amortization for the CDC portion.
SBA 7 (a) loan
The SBA 7 (a) is another line of credit or loan issued by the Regions financial corporation. The amount offered ranges between $350,000 and $5 million. Small business owners can utilize this type of loan or line of credit for business acquisitions, debt refinancing or working capital. It can also be used for inventory and leasehold improvements and equipment purchases. The loan terms for the SBA 7 (a) loan is up to 7 years for working capital, ten years for equipment purchase and up to 25 years with fully amortizing loan terms for real estate. Luckily, it has a low down payment.
SBA Express loan
The Regions financial corporation SBA express loan can also be used for debt refinancing, working capital and business acquisitions. It is slightly different from the SBA 7 (a) because this line of credit offers between $100,000 and $350,000 worth of funds. This financing option can as well be used for the purchase of equipment for your business and inventory and leasehold improvements. The loan terms for the SBA Express loan is up to 5 years, revolving with a 10-year maturity for its line of credit. Borrower contribution for this Regions financing option is at least 10% for purchases.
Lending criteria for Regions financial corporation small business loans
The criteria for eligibility for Regions financial corporation loans are fairly straightforward. This section contains information on these criteria and qualifications.
- ● 18 years of age and above
- ● You must have a Regions checking account.
- ● Number of years in business (at least one year)
- ● Annual sales (a minimum of $50,000 or more in annual sales).
- ● Personal credit score (at least 600).
- ● Business credit history (this matters a lot to this lender when you apply for any of their small business loans).
Regions Financial Corporation Interest Rates, Fees & Loan Options
The Regions financial corporation has its annual percentage rate set at 4.74% APR to 16.49% APR. However, it is important to note that the 4.74% is only available for applicants with excellent credit history.
Interest rates for the Visa business credit card are in the range of 9.49% – 20.49% APR and are based on your business’s creditworthiness. For the Visa business enhanced credit card, the interest rate is in the range of 11.49% – 22.49% APR. There is also a 4% fee for a cash advance on both options. Additionally, a late payment fee can be as high as $49.
Largely, the interest rate you will get for your loan depends on the amount of loan applied for, the loan term, and election to receive the 0.25% Auto-Pay (i.e. when monthly payments are automatically debited from your Regions checking account) discount.
Always check the Regions financial corporation website for the current interest rate before you apply for any of their small business loans. This is important because the interest rates of small business loans change from time to time.
Regions Financial Corporation Application
To apply for a small business loan at Regions financial corporation, you must visit their website. Potential documents you would need include:
- ● Copy of document for identification of applicants
- ● Personal financial statement
- ● Personal and business tax returns
- ● Current, non-Regions bank account statements
- ● Debt schedule
- ● Interim business financial statements (balance sheet and profit and loss)
Based on your specific request, other documents may be required. Also, the length of time for a decision to be taken varies based on the size and complexity of your request. Once your loan application is approved, the approval status will remain in effect for 30 days.
Summary of Regions Financial Corporation Loan Options
Regions financial corporation small business loans are very easy to apply for. The variety of loans offered are designed to meet the specific financing needs of small business owners. Flexible and customizable repayment terms make the loans offered by the Regions financial corporation very attractive. The rates, fees and terms of this lender are some of the best. However, your business’s creditworthiness affects the interest rate your loan will attract.