Citibank Business Loans Review
Despite offering businesses excellent rates, Citibank Business Loans have stringent borrower qualification and opaque terms that make it challenging for prospective borrowers.
Citibank Business Loans
Total Rating | 2.7 |
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Rates & Fees2.9 | |
Services5.0 | |
Eligibility Requirements1.7 | |
Application1.0 | |
Sales & Advertising Transparency2.2 | |
Customer Service2.8 | |
User Reviews2.1 |
Citibank Business Loans At A Glance
- Citibank offers large borrowing amounts and competitive term lengths
- Citibank is not transparent about fees or rates
- Questionable company reputation
Pros
- Rates tend to be inexpensive
- Long-term financing options available
- Few additional fees
Cons
- Borrower qualifications might be hard to meet
- Website advertising is not informative
- Poor public reputation
Table of Contents
- What Is CitiBank?
- Loan Services Offered by Citibank
- Citibank Borrower Qualifications
- Citibank Loan Terms & Fees
- Citibank Application Process
- Citibank Sales & Advertising Transparency
- Citibank Customer Service & Technical Support
- Citibank User Reviews
- Final Verdict: Are Citibank Loans Right For Your Business?
What Is CitiBank?
Citibank is a popular bank that provides personal and business financing. Citibank offers several lending products to small businesses, including term loans and lines of credit. Loans from Citi are considered among the most competitive in the business, but they can be difficult to qualify for. This is compounded by the bank’s opaque borrower requirements, which make it difficult for businesses to know if they would qualify in the first place.
Loan Services Offered by Citibank
Services5.0 |
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Lending Services 5.0 |
Lending Limits 5.0 |
Payment Portal & Mobile App 5.0 |
Citibank offers a solid selection of business lending options that meet a variety of lending needs, putting the lenders rating in this section at 5/5.
Citibank provides the following lending products to qualified businesses:
- Business installment loans
- Business lines of credit
- Commercial mortgages
- Healthcare acquisition financing
Since our last review, Citibank has also added SBA loans and lines of credit to the mix.
Though bank loans such as Citibank business loans are generally suited to larger, established businesses, Citi offers loans to small businesses as well. In particular, smaller businesses will be interested in Citibank’s installment loans for purchasing fixed assets — such as equipment or lines of credit for short-term or recurring cash flow needs. Those lending products are available in amounts as small as $5,000 and $10,000, respectively.
While it’s not a loan, Citibank also offers small business credit cards, which may be more appropriate for small businesses that don’t qualify for a loan.
Citibank Borrower Qualifications
Eligibility Requirements1.7 |
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Availability 3.0 |
Borrower Qualifications 1.3 |
Transparency 1.0 |
Citibank plays its cards pretty close to its chest, but most qualifying companies will need to have been in business for at least two years. Citibank doesn’t disclose credit requirements, but you can expect to have a hard time qualifying if your credit score is below the 600 mark. Similarly, there are no explicit income requirements, but it’s good business practice to have $1.25 worth of revenue for every $1 of debt you’re servicing.
Time in business: | 2 years |
Credit score: | Unknown |
Revenue: | Unknown |
Additionally, Citibank may impose geographic restrictions on some of its business lending products, and you will also need to have a Citibank business banking account, as well as personal guarantees from all owners collectively owning 51% or more of the business. Citibank gets a 1.7/5 star rating for this section for the lack of transparency and the fact that some Citibank loans are limited by location and to businesses with a Citibank bank account.
Citibank Loan Terms & Fees
Rates & Fees2.9 |
---|
Pricing 5.0 |
Affordability 0.8 |
Citibank offers installment loans and lines of credit to businesses in both secured and unsecured forms. Citibank also provides healthcare acquisition financing and commercial mortgages. Generally, bank loans including Citibank offer lower interest rates than what you would expect from an online loan.
Unfortunately, the bank is extremely opaque when it comes to terms and fees, divulging almost none of that information publicly, resulting in a section rating of 2.9/5 stars.
To get information on interest rates, origination fees, and other fees, you’ll need to speak with a specialist by requesting a call or visiting your local Citibank branch.
If you qualify for the Citibusiness Preferred Program, you may be eligible for waived origination fees, discounted interest rates, and other benefits.
Citibank is at least open about borrowing amounts, term lengths, and interest rate types:
Citibank Business Term Loans
- Borrowing amount: $5,000 – $5,000,000
- Term length: Up to 7 years
- Interest rates: Fixed
Citibank Lines Of Credit
- Borrowing amount: $10,000 – $250,000
- Terms: Revolving
- Interest rates: Variable
Citibank also has a larger line of credit for businesses that need from $250,000 to $5,000,000.
Citibank Healthcare Acquisition Financing
- Borrowing amount: $250,000 – $5,000,000
- Term length: Up to 10 years
- Interest rates: Fixed
Citibank Commercial Mortgages
- Borrowing amount: $250,000 – $5,000.000
- Term length: 5-20 years with amortization up to 25 years
- Interest rates: Fixed or variable
Citibank SBA Loans & Lines Of Credit
- Borrowing amount: $10,000 – $10,000,000
- Term length: Up to 25 years
- Interest rates: Fixed or variable
Citibank Application Process
Application1.0 |
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Application Process 1.0 |
Application Timeline 1.0 |
Keeping up with the theme of non-transparency, Citibank does not disclose much information about its application process, approval timeline, or time to funds once your application is approved.
Expect to have to provide information about your business, your bank accounts, and your resources. If you have business partners, you’ll likely need their information, too. You can search for a branch near you using the company’s locator or can request a call online. We never like seeing a bank that requires an online form to see any application process information — Citibank requiring a call request takes this a step further in the wrong direction. Having to wait for a call back instead of providing borrowing requirements and application process information online is a big drawback.
Again, you’ll also need to have a business bank account with Citibank before you can apply for one of their lending products.
Citibank Sales & Advertising Transparency
Sales & Advertising Transparency2.2 |
---|
Sales Practices 2.0 |
Web Presence 2.5 |
Citibank is not as transparent as other banks. This lender makes it difficult to impossible to find concrete information on borrower qualifications, interest rates, fees, or application processes or timelines. It’s worth noting that Citibank is forthcoming with borrower amounts and term lengths.
Citibank Customer Service & Technical Support
Customer Service2.8 |
---|
Personal Support 1.9 |
Self-Service 5.0 |
You can reach out to Citibank’s customer service by phone, and extended customer service hours are available. You can also visit a local branch. However, for such a big company, we expect to see more support options. Citibank also receives some negative complaints regarding customer support.
Citibank User Reviews
User Reviews2.1 |
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User Feedback 2.0 |
Review Site Aggregate 2.1 |
If you’ve kept an eye on the news cycle over the last ten years, you’ll know that big banks have a bit of an image problem. Citi is no exception.
The bank receives a dismal F on BBB, with over 6,900 complaints closed in the last three years (a whole 1,000 more complaints since our last review). The company also has a current BBB alert regarding a lawsuit against Citibank for not protecting or reimbursing fraud victims.
Citibank fairs slightly better on some third-party review sites with an aggregate rating of 2.1/5 stars, but the sheer volume of negative reviews is troublesome. Granted, many of the complaints concern Citi’s credit card services, not its lending services, but the overall company reputation is still not great.
Negative Citibank Reviews & Complaints
Citi’s poor ratings are based on a variety of factors, ranging from failures to respond to complaints to government action against the bank. Specific issues with the bank include:
- Account Problems: These complaints come in a variety of forms, including mysteriously frozen accounts, phantom charges, and fraudulent accounts.
- Fees: Business owners complained about being charged punishing late fees and jacked up interest rates if they missed a payment.
- Scandal-Prone: Citi has been part of a number of major legal scandals recently. These include price-fixing, illegal credit card practices, hedge fund fraud, and overcharging customers.
Positive Citibank Reviews & Testimonials
Are things sounding grim? Rest assured, there are still reasons to consider Citi for your business loan if you qualify:
- Good Rates: Citi can offer lower rates than you’ll find with alternative lenders.
- Physical Presence: If you prefer to see a human face when you do your banking, Citi’s large number of branches makes it very easy to do business the old-fashioned way.
- Range Of Products: Citi can serve as a one-stop shop for business finance due to its deep pockets and depth of offerings.
Final Verdict: Are Citibank Loans Right For Your Business?
Citibank’s size and wealth mean it can, in theory, offer businesses excellent rates on loans, but with hardly any information provided on the company’s site, there’s no way of proving this is true.
Compared to its competitors, even to other big banks, Citibank is an opaque lender, disclosing very little about its business lending products upfront. Combined with lingering customer service and legal issues plus a slew of negative reviews, this bank does not present the most friendly face to prospective borrowers.
Citibank is also behind the times in the business lending scene. Requiring business owners to visit a location for most application steps instead of providing an online option is almost unheard of nowadays.
If you need small business financing, you’d be better off checking other more reputable small business loans or small business line of credit options.
Business Loan & Funding Products Review Methodology
Merchant Maverick has been researching and reviewing business lenders since 2015. Our writers have tested over a hundred different funding products, including traditional term loans, online loans, lines of credit, start-up loans, merchant cash advances, and equipment financing. In each review, we evaluate rates and fees, services, eligibility requirements, application process, sales and advertising transparency, customer service, and user reviews.
Read more about how we rate business loans and funding products.
When comparing different lenders and loan products, we consider many data points, including the ease and transparency of the application process, interest rates, repayment structure, sales ethics, time to funding, revenue and time in business qualifications, and credit score requirements. Our lists of the best funding products include only those we’ve deemed worthwhile from multiple vantage points, and often share qualities such as widespread accessibility across fifty states, low rates, flexible requirements, and competitive borrowing amounts.
We spend an average of 10-15 hours researching and updating each one of our lists, making sure the loans and funding products included meet our internal standards for quality and reputation.
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