Considering TD Bank over the Big 4 for your business loan? See why you should (or shouldn't) apply for a business loan through this bank.
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Editor & Senior Staff Writer
Last updated onUpdated
REVIEWED BY
Expert Contributor
| Total Rating | 3.6 |
|---|---|
| Rates & Fees3.8 | |
| Services5.0 | |
| Eligibility Requirements2.4 | |
| Application3.0 | |
| Sales & Advertising Transparency3.8 | |
| Customer Service3.7 | |
| User Reviews2.6 | |
Table of Contents
TD Bank, N.A. is the American branch of Canada’s Toronto-Dominion Bank. The division is based out of New Jersey and operates in 15 states, primarily on the East Coast. The bank also serves 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.
| Services5.0 |
|---|
| Lending Services 5.0 |
| Lending Limits 5.0 |
| Payment Portal & Mobile App 5.0 |
TD Bank offers numerous funding services for small businesses, including:
Aside from its small business services, TD Bank also offers commercial lending services, including equipment financing, revolving lines of credit, supply chain financing, term loans, asset-based lending, and more.
Beyond lending, you can also sign up for business checkings, savings, and other accounts through TD Bank.
While not every borrower will qualify, there’s no denying that TD Bank has a wide range of services to cover most business needs, earning it a perfect score.
| Eligibility Requirements2.4 |
|---|
| Availability 4.0 |
| Borrower Qualifications 2.0 |
| Transparency 1.0 |
Unfortunately, TD Bank isn’t forthcoming with its borrowing requirements. Similar to other banks, most borrowers will likely need a minimum credit score in the high 600s.
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 requirements are not explicitly stated, but most bank loans generally require your business to be in operation for at least two years to qualify.
You’ll also need to be in one of the states in which TD operates:
Because loans are not available in every state and borrowing requirements are not disclosed, our rating for borrower qualifications was negatively affected.
| Rates & Fees3.8 |
|---|
| Pricing 3.8 |
| Affordability 3.8 |
TD offers several lending products to small businesses.
These are the terms for TD Bank’s business term loans:
| Borrowing amount: | $10,000 – $1 million |
| Term length: | 3 – 5 years |
| Interest rate: | Undisclosed |
| Origination fee: | None for loans under $100,000 |
| Collateral: | Equipment, inventory, or cash |
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.
These are the terms and fees for TD Bank’s small business lines of credit:
| Credit limit: | $25,000 – $500,000 |
| Term length: | Annual terms |
| Interest rate: | Prime + 0.74% and up |
| Annual fee: | Waived on lines under $100,000 |
| Collateral: | Cash or A/R |
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 on 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.
As is the case with TD’s term loans, the bank will waive the origination fee for accounts seeking less than $100,000. Per TD, lines of credit are typically secured by cash or accounts receivables.
These are the terms and fees for TD Bank’s SBA loans:
| Borrowing amount: |
|
| Term length: |
|
| Interest rate: | See current rates |
| Origination fee: |
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| Collateral: | Varies by product |
TD Bank is an SBA Preferred 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 down payment of around 10%, 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 years for equipment purchases, and 25 years 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.
| Application3.0 |
|---|
| Application Process 5.0 |
| Application Timeline 1.0 |
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. Fortunately, you can apply for loans and lines of credit under $250,000 online.
You will, however, have to visit a branch if you have higher capital needs or want to apply for an SBA loan. Loan applications are available to download so you can get a head start before your appointment with a loan specialist.
We did deduct points because TD Bank does not disclose loan processing or funding timelines. However, as is typical with banks, you can assume that the process can potentially take weeks from start to finish.
| Sales & Advertising Transparency3.8 |
|---|
| Sales Practices 4.0 |
| Web Presence 3.5 |
TD Bank’s personal loan pages provide a good amount of information to prospective borrowers, so I was disappointed by how much information was held back from its small business loan section.
Even worse, the available information isn’t always laid out conveniently, requiring scrolling past unrelated products or links to other parts of the site.
| Customer Service3.7 |
|---|
| Personal Support 3.2 |
| Self-Service 5.0 |
You can reach customer service by phone. You can also schedule an appointment by form. There’s also a virtual assistant chatbot that can answer general questions about TD Bank and its services.
| TD Bank Business Loans Customer Service | Availability |
|---|---|
| Phone Support | |
| Email Support | |
| Support Tickets | |
| Live Chat | Chatbot |
| Dedicated Support Representative | |
| Knowledge Base or Help Center | |
| Videos & Tutorials | |
| Company Blog | |
| Social Media |
Additionally, TD Bank has a Help Center that you can navigate to find answers to common questions. You can also interact with TD Bank through its social media profiles on Twitter, Facebook, Instagram, Pinterest, YouTube, and LinkedIn.
As is common with banks, the quality of service is hit or miss according to users.
| User Reviews2.6 |
|---|
| User Feedback 3.0 |
| Review Site Aggregate 2.1 |
TD Bank is a mixed bag in terms of reviews, although it’s important to note that some reviews are not specifically for business lending. TD Bank receives a score of 3.6 out of 5 (based on 4,400+ reviews) on WalletHub, 1.2 out of 5 (based on 1,200+ reviews) on ConsumerAffairs, and 1.4 out of 5 (based on 2,400+ reviews) on Trustpilot.
While many of the negative reviews aren’t specific to business loans, here are some issues you may want to consider before applying for a loan from TD:
Advantages of financing with TD include:
TD is a medium-sized bank for people who might be turned off by the sheer scale (and questionable reputations) of the Big 4. While there are some things we don’t like about the bank (namely, its lack of transparency surrounding borrowing requirements, rates, and fees), it holds its own against the bigger players, earning a 3.6 out of 5 overall rating in this review.
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? See how TD Bank compares to other bank lenders. Don’t qualify for a bank loan? Start your search for a lender that works for you with our picks for the best small business loans.
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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Merchant Maverick’s ratings are editorial in nature, and are not aggregated from user reviews. Each staff reviewer at Merchant Maverick is a subject matter expert with experience researching, testing, and evaluating small business software and services. The rating of this company or service is based on the author’s expert opinion and analysis of the product, and assessed and seconded by another subject matter expert on staff before publication. Merchant Maverick’s ratings are not influenced by affiliate partnerships.
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