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U.S. Bank Review

By
Matt D'Angelo
,
business.com writer
|
Apr 17, 2019
Home
> Finance
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U.S. Bank provides various funding options to small businesses, including equipment financing, invoice financing and lines of credit. It also offers SBA loans and commercial real estate loans. U.S. Bank can provide funding up to (and potentially over) $1 million in some instances. If you're interested in its loan products, you can view its offerings for equipment financing, lines of credit and invoice financing. Below is a breakdown of each loan type, including information about qualifying for U.S. Bank's various small business loans.

U.S. Bank

U.S. Bank

The Best Business Loan and Financing Options of 2019

The Verdict

U.S. Bank provides several different types of loans for small businesses. It has a decent online reputation and is a good option for businesses looking to apply online for funding through a traditional bank.

To view all our recommendations for small business financing, visit our best picks page.

Pricing and Terms

There are several different types of loans businesses can apply for. U.S. Bank offers multiple equipment financing options. Working capital, lines of credit and SBA loans are also ideal for business owners looking to expand their businesses or cover expenses. You'll have to talk directly with U.S. Bank about its loans and your business to learn more about the interest rate and fees.

Equipment Financing

U.S. Bank has four different vehicle and equipment financing loans. These are broken up into quick and standard loans. The quick loan options range from $5,000 to $250,000. Terms on these loans are 60 to 72 months, and either the purchased equipment or business assets can act as collateral. One of the quick loan plans can be used for business expenses. Standard term loans are available – up to $1 million – and have terms that range from 60 to 80 months. There are some different qualifications, but with this loan, as with the quick loans, businesses can use the money for non-equipment purchases.

Lines of Credit

U.S. Bank provides a few different lines of credit. Businesses can choose the Cash Flow Manager Line of Credit, the Business Equity Line of Credit or the standard Business Line of Credit. The cash flow plan is ideal for a quick line of credit, the equity line requires real estate holdings as collateral, and the business line of credit is good for businesses looking for larger lines to draw upon. For the quick line of credit, U.S. Bank can provide lines up to $250,000. This is a quick line for managing credit. You can receive funds the same day you're approved, and there are multiple ways to draw funds.

Invoice Financing

U.S. Bank partners with LSQ, an alternative lender, to bring invoice financing to its customers. This can be an option for larger businesses that have a significant amount in outstanding invoices. U.S. Bank and LSQ can advance up to 85% of open invoices for same-day funding. Based on its online calculator, U.S. Bank and LSQ can provide financing for up to $100,000 in open invoices.

U.S. Bank provides other types of loans, including SBA loans, and can likely meet your funding needs as a small business if you meet its qualifications.

Features

One of the benefits of U.S. Bank is that you can apply for funding online, over the phone or at a local branch. It also has loan options that are suited for newer businesses or small businesses that may not qualify with other banks.

Loan Process

U.S. Bank has a flexible application process; you can apply online, over the phone or in person at a local branch. Some of the banks we reviewed only accept in-person applications, so this flexibility with the application process is appealing. Once you learn what type of loan you might qualify for and receive an initial quote, the next step will be to provide financial documentation.  

Terms

Terms vary depending on what type of loan you sign up for. In our research, we found that U.S. Bank can support both short- and long-term loans.

Qualifications

Individual qualifications also vary by loan type. For its quick equipment financing loans, one baseline qualification is that your business must be established for at least six months. Larger equipment financing loans require a business to be established for two years. The equity line of credit and larger business line of credit are for well-established companies generating large sales per year. The equity line of credit, for example, is suited for businesses with over $1 million in annual sales. In addition to these qualifications, you'll likely need a credit score above a certain threshold. To find out more about what you qualify for, you'll need to talk with a U.S. Bank loan representative.

Collateral

For the equipment financing and business loans, business assets or the physical vehicle or equipment act as collateral. Whatever type of loan you sign up for with U.S. Bank, you'll likely have to put up some form of collateral. (Of the banks we reviewed, only Wells Fargo offers unsecured loan plans.)

Time Until Deposit

With invoice financing, funds can be transferred to you the same day you're approved. For other types of loans, the estimated funding time depends on the type of loan you are applying for. If you're worried about the timeframe, it's best to ask about it upfront when you speak with a loan specialist.

Special Documentation

You'll have to submit financial documentation for your business, including profit and loss statements, tax returns, business plans, and a business description. Expect U.S. Bank to conduct a credit check. Ask the loan specialist about specific documentation you'll be required to submit.

When to Use This Type of Loan

Besides financing equipment, you can use loans from U.S. Bank to manage cash flow, hire new workers, run new marketing or advertising campaigns, invest in new technology and more.

Reputation and Customer Service

U.S. Bank has a better reputation with the Better Business Bureau (BBB) than some of the other banks we looked at. As of March 2019, it has an A- rating with the BBB, but close to 2,000 logged complaints. It only earned one out of five stars in customer reviews, which is on par with other traditional lenders we reviewed. This may not directly reflect U.S. Bank's small business loan service, since the company provides a variety of services.

Limitations

The only limitation we saw is, because this is a traditional bank, it may be harder to qualify for these types of loans than options from alternative lenders.

Editor's note: Need a business loan? Click the Compare Quotes button below to have our sister site BuyerZone connect you with vendors that can help.

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U.S. Bank

U.S. Bank

The Best Business Loan and Financing Options of 2019

The Verdict

U.S. Bank provides several different types of loans for small businesses. It has a decent online reputation and is a good option for businesses looking to apply online for funding through a traditional bank.

Matt D'Angelo
Matt D'Angelo
Matt D'Angelo is a staff writer covering small business for Business.com and Business News Daily. After graduating from James Madison University with a degree in journalism, Matt gained experience as a copy editor and writer for newspapers and various online publications. In addition to his writing and reporting, Matt edits articles. He reviews small business services, including PEOs, small business loans and GPS fleet tracking services. He's been with Business.com and Business News Daily since 2017.