Citizens Asset Finance Reviews - Financial Lender Pros & Cons


tamara-cohen writer
By Tamara Cohen
Updated February 21, 2021
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2020 Award Winner
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Overview

Citizen Financial Group is one of the largest and reliable financial institutes in the United States. By June 30, 2021, it had assets of $185 billion. Citizens Asset Finance is currently headquartered in Providence, Rhode Island. The firm provides a wide array of retail and corporate banking products and services to individuals, small businesses, and large businesses. Citizens Asset Finance helps its clients reach their potential by listening to their problems and providing tailored financial solutions.

Pros
  • Low-interest rate as compared to other lenders
  • Online application service
  • Fast two to three days turnaround for a bank
Cons
  • Additional charges may apply on large loan amounts
  • Poor customer reviews
  • Online applications not available for loans with amounts more than $150,000

Services Offered

Citizens Asset Finance offers a range of financing services, the details are as follows:

Business Line of Credit

Citizens Asset Finance offers a financing option of business credit lines, which are perfect financing tools when a business needs quick access to short-term capital.

Citizens Asset Finance offers business lines of credit with an amount ranging from $50,000 to $1 million to eligible clients. In addition, the customer will be charged a yearly fee for this particular financing service. A business can acquire this sort-term loan to cover up operational costs.

Business or Equipment Flex Loan

Citizens Asset Finance's business flex loan helps small business owners to buy several necessary business equipment/inventory or make leasehold improvements. This one-time funding product begins its life in the form of an interest-only revolving line of credit, with a draw period of six or 12 months, so the business can make more than one purchase of equipment at a time. 

There are many advantages to choosing a flexible loan from Citizens Asset Finance. First of all, the loan starts as an interest-only line of credit, so your upfront payments are low in comparison to a traditional term loan. The business can renew the loan after paying some amount.

Business Term Loan

The Citizens Asset Finance’s business term loan is also known as a conventional term loan. This conventional term loan requires reimbursement of capital and interest. The loan can be used to fund business expenses or buy inventory.

Business Mortgage

Citizens Asset Finance also offers a commercial mortgage that is designed to assist small business owners with purchases, renovations, or refinancing of their owner-occupied commercial property. 

SBA Loans

SBA loans are paid out by intermediary lenders but are guaranteed by the government, are among the most sought-after loans for small businesses in the market. Although SBA sponsors several loan programs, they all generally have longer terms and conditions for repayment, with lower interest rates and lower down payments. It is the mission of the Small Business Administration of the United States to make capital more accessible to a greater number of American companies. 

Small businesses that are refused or rejected by other conventional bank loans, such as business owners whose credit score is being challenged may have a better chance of obtaining approval for an SBA loan. Citizens Asset Finance is involved in three of the SBA loan programs:

SBA 7(a) Loan

SBA 7(a) loans are the most popular programs of SBA's loans. SBA 7(a) loans are flexible enough to accommodate virtually all business-related projects such as the purchase of equipment, acquisition of businesses or franchises, working capital, or financing of housing projects.

SBA Express Loan

The SBA Express loan is a type of SBA 7(a) loan, a business can use Express loan funds for any similar purpose, like working capital, equipment purchases, debt refinancing, and more. However, SBA Express does not have term loans or lines of credit over $350,000.

SBA 504 Loan

SBA 504 loans are designed to finance projects related to real property and the purchase of significant capital assets. As a result, business owners who participate in this program may get some of the highest loan amounts available. 

Qualification

To qualify for Citizens Asset Finance financial services following requirements must be fulfilled:

Terms and Rates

Following are the rates and durations for each of Citizens Asset Finance services.

Flexible Business loans:

For flexible business loans, Citizens Asset Finance may provide loans of $10,000 to $150,000 over six months, interest periods only. Thereafter, you will have a repayment period of 42 to 54 months, depending on the size of your loan. 

Business Term Loans:

Citizens Asset Finance's corporate term loans may have a maximum term of seven years, and borrowers may choose between a fixed or floating interest rate.

Also, keep in mind that if you apply for a loan to a maximum of $150,000, you can apply online and receive approval and funds for the loan within 2-3 days.

Business Mortgages:

Fixed-rate business mortgages are paid monthly over a five or ten-year repayment period and commercial mortgages can last from 5 to 25 years. Since commercial loans often require large amounts of capital, the customer will need to consult a representative of Citizens Asset Finance to apply for the loan.

SBA 7(a) loan:

SBA 7(a) loans amount up to $5 million and can be repaid for up to 10 years for working capital, 15 years for the purchase of equipment, and 25 years for real estate.

The final verdict

Loans of Citizens Asset Finance are relatively quick in comparison to other regional banks. Many banks require that the customer visits the branch, and the application process takes weeks to complete. But at Citizens Asset Finance, the customer can apply online and the funding decision is made in two business days.

It also has somewhat weaker requirements than other lenders. Most lenders require at least two or three years of activity, Citizens Asset Finances asks only for one. The bank offers flexible rates for its equipment loan and lease plans.

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