- Established businesses with good or excellent credit
- Businesses that need large loans
- Businesses with high revenue
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 has been a SBA Preferred Lender for 16 years 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.
Businesses can access rate and fee information about KeyBank’s loans through its website, but you must call KeyBank or visit one of its branches to apply for a loan. Business and consumer loans from KeyBank are available in the following states: Alaska, Colorado, Connecticut, Idaho, Indiana, Kentucky, Maine, Michigan, New York, Ohio, Oregon, Utah, Vermont, and Washington.
It is refreshing to find a lender that will put the interest rates it charges for term loans up front before you apply for the loan. KeyBank’s website gives small businesses the fixed and variable rates for various loan amounts and the term lengths of those loans. This allows potential customers to evaluate the competitiveness of the interest rates on the loans before they begin the application process and helps them select the correct loans for their needs. Benefits include:
Variety of Loans
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:
- SBA 7(a) loans for various business financing needs
- SBA 504 loans for major acquisitions
- Working Capital for short-term needs such as funding inventory or consolidating debt
- SBA Express loans with fast turnaround for up to $350,000
- SBA International Trade loans to help expand into international marketplaces
- SBA Export Express to assist in developing export business
- 7(a) Small loans with a faster turnaround time for up to $350,000
Reduced Rate for Automatic Payment
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% 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 and origination fees that range from $150 for loans of $10,000.00 – $25,000.99 to $1,500 for loans of $250,000.00 – $499,999.99. For loans of $500,000.00 and higher, the origination fee is 0.50%. Limitations of the service include:
Better Information about Loan Approval Process
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 because of their credit rating, credit history, years in business or other items KeyBank considers as part of its credit approval process. 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:
- Prepayment penalties
- Required credit rating to qualify for loans
- Required time in business to qualify for loans
- Required minimum annual or monthly revenue to qualify for loans
- How long the approval process takes
- How long it takes to receive funding once you are approved
Additional Ways to Apply
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.
Not Available in All States
Key.com only offers loans to consumers and businesses in 14 states: Alaska, Colorado, Connecticut, Idaho, Indiana, Kentucky, Maine, Michigan, New York, Ohio, Oregon, Utah, Vermont, and Washington. 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.
*Star Rating is determined by evaluating APR range, minimum credit score requirement, revenue requirement, length in business requirement, and other related approval data.