PNC Small Business Loan Benefits and Pros & Cons
|Estimated APR||6.28% – 15.79%|
|Loan Amounts||$10,000 – $100,000|
|Term Lengths||1 – 2 years|
The rating in the box above covers all of PNC’s small business financing products. The product information in the box above is only about the term loan product.
Founded in 1845, PNC Bank is one of the oldest financial institutions operating in the United States today. The bank is headquartered in Pittsburgh, Pennsylvania, and serves customers across the East Coast and Midwest regions.
PNC Bank operates more than 2,400 branch locations along with over 9,000 ATMs. It is one of the nation’s most popular small business lenders.
Customers have access to several financial products and services with PNC Bank. This includes; deposit accounts, personal loans, credit cards, business banking and financing solutions, and asset management services.
Customers with PNC also have access to a digital platform that offers online banking services 24/7. Below is the basic information you need to know about PNC Bank.
PNC Bank Small Business Loan Overview
Small business owners may qualify for one of several financing solutions offered by PNC Bank. The unsecured term, secured term, business equity installment, commercial real estate, business vehicle, and investment property loans are all available to small companies that meet the eligibility requirements.
PNC Bank requires that small business owners have at least three years in business to qualify for a small business loan.
Applicants may also be required to provide detailed information on the revenue and cash flow of the company, business financial statements, and business ownership relationships among partners to receive approval.
PNC Bank small business lending is designed to meet the needs of well-established companies. Which has a strong financial track record and several years in business under the same ownership.
Although there is not a single industry in which PNC Bank offers small business loans. The financial institution works best with companies that do not operate in volatile or cyclical sectors.
- Suited for small to large businesses
- Low interest rates
- Stringent borrower qualification
- Only operates in 19 states
PNC Bank Small Business Loan Application Criteria
Below are the criteria to watch out for, before being eligible to apply;
- 3+ years in business
- No bankruptcy claims, tax liens, judgments or lawsuits
- No outstanding financial obligations
- Stable revenue
- Personal credit history of 5+ years
- No evidence of collection accounts, foreclosures or tax liens
- Personal debt-to-income ratio less than 40%
Information: Rates, Terms, Fees, and Limits
Although PNC Bank offers several types of business financing solutions, the two most common are secured and unsecured small business loans.
Unsecured Small Business Loan
With an unsecured business loan from PNC Bank, business owners may qualify for funding from $10,000 up to $100,000 with a simple and fast loan application.
An unsecured loan does not require collateral, but businesses usually must have been in operation for three years and have stable or growing revenues to qualify. Interest rates vary depending on the financial strength of the applicant and loan terms are offered up to 48 months.
Secured Small Business Loan
In addition to an unsecured small business loan, PNC Bank also offers a secured small business loan. Business owners may borrow between $10,000and $3 million with either a fixed or variable interest rate.
Loan terms extend up to seven years based on the needs of the business and the collateral used to back the secured loan.
Small business owners with assets on hand to use as collateral may find more value in a secured loan with PNC Bank, because the interest rate can be far lower than an unsecured financing arrangement.
Small business owners opting for either a secured or unsecured loan with PNC may submit an application through the bank’s online platform. For the most qualified small businesses, approval can be granted in as few as two business days.
PNC does not limit small businesses in terms of what the loan funds can be used to cover, and total loan amounts are higher for secured loans than for comparable small business lenders. Additionally, PNC Bank has a vast library of online articles and resources available to small business owners.
Although PNC Bank offers some benefits to business owners utilizing its financing solutions, downsides do exist. PNC Bank requires that small business owners have a business relationship with the financial institution before applying for a new loan.
Also, PNC may have more stringent credit, revenue, and time in operation requirements than comparable financial institutions.
PNC Bank only offers very low-interest rates on secured loans, which may not be feasible for some small business owners. Current interest rates are not provided until a loan application is submitted, so it is difficult to know for sure if PNC Bank offers a better value than similar small business lenders.
Small business owners in need of financing may use PNC Bank successfully when they have a strong credit history, solid income, a track record of successful operation in business, and/or the collateral needed to receive a secured loan.
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