KeyBank has a long track record in banking, having been in business since 1929. The bank offers small business term loans and Small Business Administration (SBA) loans, as well as business equipment loans, commercial vehicle loans, and business mortgage loans. KeyBank is a SBA Preferred Lender and received the 2012 SBA Large 7(a) Lender of the Year award. The bank offers businesses term loans between one and seven years with both fixed and variable rates. Consumers that choose KeyBank should remember that they must have a credit score of 550 or higher.
KeyBank offers businesses term loans to cover long-term financing needs, with terms ranging from one year to seven years. Customers can apply for KeyBank's term loans with fixed rates or variable rates. KeyBank also has business equipment loans that allow you to pay only the interest due for the first six months of the loan, business mortgage loans for purchasing or refinancing commercial real estate, and commercial vehicle loans. KeyBank is a SBA Preferred lender offering SBA loans that include:
KeyBank offers a rate discount for client's signing up for automatic payment deduction from a KeyBank business checking or savings account. Customers can get a 0.25 percent rate reduction off of the interest rate with this feature.
KeyBank's website offers businesses the Financial Tools & Resources section with calculators to help determine cash flow and capital requirements, perform breakeven analysis, and calculate return on investment. The Financial Tools & Resources portion of the website also includes checklists to help businesses meet requirements, such as a business loan checklist of required information you will need when you apply for loans.
KeyBank's website states that its loans are "subject to credit approval", but it does not describe what businesses need to do in order to meet the bank's requirements for credit worthiness. KeyBank also charges an $86 documentation fee as part of the processing requirement for all of its term loans. They also lack information regarding other possible fees such as closing and origination fees.
Information about what businesses needs to do in order to qualify for a loan from KeyBank can minimize the time applicants spend applying for loans they cannot receive. Customers could also benefit from information on how quickly they can receive funding from the bank. Data KeyBank should consider adding to its website include:
Businesses can research types of loans on KeyBank's website, but they must call the bank or visit one of its branches in order to apply. Other lenders provide a streamlined online application process, at least for small loan amounts. KeyBank's customers may benefit from the ability to apply for loans online. The bank could also provide a live chat feature on its website that allows loan applicants to contact KeyBank staff should they have questions while completing their applications.
Key.com only offers loans to consumers and businesses in 15 states. If the bank can expand the areas where it can offer loans, it may acquire additional customers. The bank should also consider posting that information prominently on the section of its website that focuses on business loans so applicants will know up front if they do not qualify for loans because of the states where their businesses are based.
KeyBank provides a wide variety of types of loans for small businesses including term loans, small business loans, and loans for equipment and property purchases and refinancing. However, KeyBank is lacking a great deal of information and have a low availability. We do not recommend working with KeyBank at this time.
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