Santander Bank is a reputable financial institution that offers small business loans to owners with pressing financial needs. As a small business owner, you can easily apply for loans and other financing options at Santander bank with a high certainty of getting it. This bank is equipped with lines of credit that are tailored to meet a broad range of financing needs. You can access funds to the tune of $500,000 in 2 – 3 business days after application.
Santander Bank offers flexible repayment terms with low-interest rates. In addition, the criteria for accessing the various types of lines of credit and loans are not overwhelming. This makes them a preferred choice for many small business owners who have urgent financial needs to expand and grow their businesses.
Types of Loans offered by Santander Bank
Santander Bank offers a variety of loans and lines of credit to suit one purpose or the other. Each type of loan or line of credit is unique and caters to a specific financial need. This section reviews the types of loans and lines of credit you can apply for.
Commercial Vehicle Loans
This is the right loan to apply for if you need to buy a brand new or fairly used income-producing vehicle for your business. This type of loan provides financing from $25,000 to as much as $300,000. It offers a very flexible payment schedule, and the financing term ranges from 24-months to 120-months. So instead of depleting the working capital of your growing business, you can simply apply for a commercial income-producing vehicle loan.
Business term loans
This type of loan is great if you already know exactly how much you need to finance that next project. With the business term loan, you can get funds to expand your operations. It is very flexible but requires a business existence for at least 24 months (2 years). The minimum amount to borrow is $10,000 and can be paid back in 3 – 7 years. Business term loans have a fixed interest rate. This loan comes with a $250 origination fee. However, this fee can be waived based on your business checking account.
Commercial Loans
When you need to finance your business expansion, this is the right type of loan for you. A commercial loan can be tailored to suit your specific needs. It is also a great option for accessing liquidity and managing working capital.
Business Owner-Occupied Commercial Real Estate Loans
When there is the need to renovate your business facility, this type of loan is the most appropriate. It is also designed to match your small business need to purchase a new building or facility. The commercial real estate loan is very predictable and offers you fixed interest rates for 5 – 10 years terms. The minimum amount to borrow for this type of loan is $25,000, and the loan term is 25 years.
Business equipment finance
This loan is the right source of funds for equipment purchases. You can use the business equipment finance for getting medical equipment or construction equipment. Additionally, it has a low fixed rate. This type of loan covers 100% financing, which includes tax, freight, and installation. The minimum amount to borrow is $50,000 and can be repaid in 3 – 10 years.
Business line of credit
This is the right type of loan to apply for if you need to hedge your business against cash flow fluctuations. The business line of credit offers you working capital for short-term needs. The business credit line is also great for purchasing inventory and funding short-term working capital. This is a very flexible source of financing but requires your business to have been established for at least 2 years to qualify for the loan. There is also a $250 annual fee charged on the anniversary of opening this line of credit.
Other types of financing offered by Santander Bank
Apart from the ones above, there are other financing options that Santander Bank offers. Here are some other loans.
SBA loans
This loan is appropriate for a wide range of financing. It has a more flexible underwriting and has better repayment terms when compared to traditional financing. If your business is credit-worthy, you will benefit from easy access to SBA loans with reduced paperwork. Santander Bank is an SBA preferred lender and will directly offer your business a flexible loan to help your business grow. You can get in touch with this financial institution for this loan by accurately filling this form.
Overdrafts
This is particularly the best for Santander Bank current account holders. You can easily borrow money on a short-term basis without paying any overdraft fees. Note that a $35 fee will be charged for items presented against insufficient funds balance in your account. More so, there is a limit of 6 overdraft fees per day for overdrawing your account.
Asset Based Lending
This type of financing is appropriate when your business is seeking liquidity using available assets. Asset-based lending is the right type of financing for inventory and receivables. When there is the need to fund the growth and expansion of your small business or major acquisitions, this is an ideal loan for such.
Lending criteria for accessing Santander Bank small business loans
You must be 18 years of age or older to apply for a small business loan or line of credit from Santander Bank. You must also be a resident of Florida, Washington, Delaware, Maine, Maryland, Massachusetts, New Hampshire, New York, New Jersey and Pennsylvania among other states for your application to be considered. Other lending criteria that may be used to give you access to your preferred loan option includes:
- The number of years you have been running your business
- Current income
- Employment status
- Your credit score
- Personal and business tax returns
- Business bank statements
You will also need to provide the following information to be eligible. These include:
- Proof of U.S. Citizenship or Legal Permanent Resident status
- Three months’ business bank account statements
- Proof of 100% ownership of the business
- 20% down payment required if Applicant has been in business for less than two years
Santander Bank Interest Rates, Fees & Loan Options
Santander Bank offers a minimum of $10,000 for a business line of credit and a maximum of $50,000 for business equipment finance. Interest for fixed loans is at a competitive rate of 6.99% - 25.99% APR. Additionally, a 3 – 10 years term is always in place to repay small business loans and lines of credit. Furthermore, Santander Bank offers low, fixed, or floating interest rates to borrowers depending on their preference. If automatic payment is not elected or is discontinued, the APR on the Loan will increase by 0.25 percentage points, and the payment will increase.
It is important to note that interest rates for small business loans are never static. Therefore, always check the Santander Bank website before applying or signing off on a small business loan.
Santander Bank Application
Visit Santander Bank’s official website to apply for a small business loan. After a successful online application, you will have to meet with a business banking partner in person. Depending on the type and amount of the loan you are applying for, you must provide the following information.
- Means of identification (includes your name, email address, phone number, and a government-issued I.D card).
- Social security number
- Basic employment information
- Basic income information
- A business plan (for new and existing businesses)
Immediately your loan application is completed and successfully submitted, Santander Bank will make a lending decision. If you qualify for the loan or line of credit, funds will be sent within 3 business days. This may take longer if you do not have a checking account with this financial institution.
Note: an underwriter at Santander Bank will make a credit inquiry which will affect your credit score for up to 2 years. This hit is small and is sometimes less than 5 points.
Summary of Santander Bank Loan Options
Santander bank small business loans are easily accessible through an online application. A wide range of financing options is available to suit the specific needs of small businesses. Interestingly, once the criteria for the respective loan or line of credit are met, Santander bank tends to expedite fund disbursal. The underlying idea is simply to encourage the speedy growth of your business. The best part of applying for a loan from this lender is the flexibility of repayment. You will receive a rate discount by setting up automatic payments from your Santander Bank checking account.
We recommend that you take your time to choose the best financing options for your business before applying. Perhaps you are interested in comparing other business loans and credit lines offered by other bankers and lenders.