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TD Bank Business Loan Review

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Date Established
1852
Location
Cherry Hill, NJ

Pros

  • Suited for small to large businesses
  • Low interest rates
  • Few additional fees

Cons

  • Stringent borrower qualification
  • Only operates in 16 states

Overview

T.D. Bank, N.A. is the American branch of Canadian bank Toronto-Dominion Bank. The division is based out of New Jersey and operates in 16 states, primarily on the East Coast. They also serve Washington, D.C.

East Coast businesses with excellent credit that are looking for a large, but not too large, alternative to the Big 4 banks may find TD provides the lending muscle, good rates, and easy access they’re looking for.

Read on and see if TD Bank is the right solution for your company.

Business Lending Products

Borrower Qualifications

Below are the qualifications for TD Bank loans. The bank doesn’t explicitly state a minimum credit rating for all loans, but for unsecured loans you’ll need a FICO score of 680 or higher. Since most of this bank’s business lending products are secured, this will be more of a factor for those seeking personal funding. There are no set revenue restrictions, but you should expect to have at least $1.50 in revenue for every $1 you borrow.

Time in business:2 years
Credit score:680 (for some products)
Revenue:Unknown

You’ll also want to be in one of the states in which TD operates. They are:

  • Connecticut
  • Delaware
  • Florida
  • Maine
  • Maryland
  • Massachusetts
  • New Hampshire
  • New Jersey
  • New York
  • North Carolina
  • Pennsylvania
  • Rhode Island
  • South Carolina
  • Texas
  • Vermont
  • Virginia
  • Washington, D.C.

Terms & Fees

TD offers several lending products to small businesses.

Small Business Loans

These are the terms for TD Bank’s business term loans:

Borrowing amount:$10,000 – $1 million
Term length:3 – 5 years
Interest rate:Unknown
Origination fee:None for loans under $100,000
Collateral:Blanket lien, financed asset, CD, or savings account

TD’s small business term loans can be used for equipment, vehicles, expansion, renovation, working capital, and real estate.

These loans resemble traditional bank loans, lasting several years and accumulating interest over time. Interest rates are fixed.

TD’s small business term loans are secured, meaning you’ll need to provide collateral as security.

Lines Of Credit

These are the terms and fees for TD Bank’s small business lines of credit:

Credit limit:$25,000 – $500,00
Term length:Annual terms
Interest rate:Prime + 0.74% and up
Annual fee:Waived on lines under $100,000
Collateral:CD or savings account

Businesses looking for something more versatile than a one-time term loan may prefer to establish a line of credit. Though the amount of money you can access with a line of credit at once is often smaller than it would be with a term loan, you can draw upon your line of credit as frequently (or infrequently) as you want so long as the total amount you’ve borrowed remains under your credit limit. You only pay interest on the amount you’ve drawn upon.

Think of it a bit like a credit card attached to an account at your bank; some lines of credit even come with cards that can be used to make retail purchases.

As is the case with TD’s term loans, the bank will waive the origination fee for accounts seeking less than $100K. Unlike the term loans, however, TD’s lines of credit have variable interest rates.

SBA Loans

These are the terms and fees for TD Bank’s SBA loans:

Borrowing amount:$250,000 – $5 million (SBA 7(a) business and real estate loans)
No maximum for 1st mortgage, $5.5 million for 2nd (SBA 504 loans)
Term length:Up to 25 years (SBA 7(a))
Up to 20 years (SBA 504)
Interest rate:Less than Prime + 4.25%
Origination fee:0-3.5% (SBA fee)
Unknown (bank fees)
Collateral:Varies by product

TD Bank is an approved SBA lender and offers both SBA 7(a) loans and SBA 504 loans. While the SBA does not directly issue the loan, it does guarantee a percentage of qualifying borrowers’ loans, allowing them to access more credit, at better rates and for longer terms than they would otherwise qualify for.

Be prepared to make a downpayment of around 10 percent for a 7(a) loan, as well as provide assets or real estate for collateral. The length of the SBA loan will vary depending on the purpose of the loan. For example, 7(a) loans can last up to seven years for working capital, 10 for purchases, and 25 for real estate.

Businesses that need money quickly can also apply for an SBA Express Loan through TD. Those loans are capped at $350,000, but have an expedited application and approval process.

Application Process

If you’ve been spoiled by the quick and easy online application processes of alternative lenders, you’ll need to remember that you’re dealing with a traditional bank here. To begin the application process, you can submit a contact form. A specialist will reach out to you, typically within a business day, to walk you through the steps of your application.

You can also download application forms for small business loans under $100,000, small business loans over $100,000, and your personal financial statement, which are required for additional applicants with a 10 percent or greater ownership in the business.

Depending on the type of financing you’re seeking, you may need to attach additional documents.

Sales & Advertising Transparency

As TD Bank’s personal loans pages provide a good amount of information to prospective borrowers, I was disappointed by how much information was held back from their small business loan section. Even worse, the information that is available isn’t always laid out conveniently, requiring scrolling past unrelated products or links to other parts of the site.

Customer Service & Technical Support

You can reach customer service by phone at 1-888-751-9000. You can also schedule an appointment by form. There’s also a chat feature on the site that’s supposed to be active Monday through Friday, 8:30 – 5:30 ET, but in my experience it’s a bit of a crapshoot as to whether it’ll be available.

You can also interact with TD Bank on social media:

Negative Reviews & Complaints

TD Bank’s US headquarters aren’t currently accredited by the BBB. Some branches are individually listed, however, so you can always look up your local branch to view complaints. Here are some issues you may want to consider before applying for a loan from TD:

  • Regional: You’ll have an easier time doing business with TD if you’re on the East Coast and have a branch nearby.
  • Traditional Application: It may be a little faster than it was in the old days, but you’re going to need to fill out a bunch of forms rather than rely on easy, online convenience.
  • Harder To Qualify: Compared to alternative lenders, companies will have a harder time making the credit cut with TD.

Positive Reviews & Testimonials

Advantages of financing with TD include:

  • Waived Origination Fees: TD waives the fee on loans under $100,000, which can greatly improve the value of your loan.
  • Versatile Products: Banks like TD often have products that are more flexible and more numerous than you might find with an alternative lender.
  • Better Rates: While TDs rates aren’t the best in the business, they’re lower than you’d find with many other lenders.

Final Verdict

TD is a medium-sized bank for people who might be turned off by the sheer scale (and questionable reputations) of the Big 4. East Coasters with excellent credit and branches in their area can take advantage of TD’s origination fee-free loans if they’re seeking less than $100,000. Everyone else can probably find better rates with their bank of preference, or easier qualifications with an alternative lender.

Need alternatives?

Looking for a loan or line of credit and want an alternative to TD Bank? See how they compare to other bank lenders. Don’t qualify for a bank loan? You can still get funding through alternative sources.

Chris Motola

Chris Motola

Finance Writer at Merchant Maverick
Chris Motola is a writer, programmer, game designer, and product of NY. These days he's mostly writing about financial products, but in a past life he wrote about health care and business. He's a graduate of the University of Central Florida.
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