For entrepreneurs wishing to launch or grow their companies, obtaining funding is an essential first step. A range of loan options designed to satisfy the requirements of small and medium-sized businesses are available from TD Bank. This guide provides a detailed walkthrough of the TD Bank loan application process, eligibility criteria, required documentation, and expert tips to improve approval odds in 2025.
Whether a borrower needs funds for equipment, working capital, or expansion, understanding how to navigate TD Bank’s lending options can streamline the process and increase the likelihood of success.
Understanding TD Bank Business Loan Options
TD Bank provides several financing solutions designed to support business growth. An outline of the most popular loan kinds is provided below:
1. Term Loans
- Loan Amounts: $10,000 – $1,000,000+
- Interest Rates: Competitive fixed or variable rates (starting at ~6%)
- Repayment Terms: 1–10 years
- Best For: Large one-time investments like real estate or major equipment
2. Business Lines of Credit
- Credit Limits: $10,000 – $500,000
- Interest rates are variable and determined by the prime rate plus margin.
- Revolving repayment terms with draw durations of up to five years
- Best For: Ongoing working capital needs
3. SBA Loans (Small Business Administration-Backed)
- Loan Amounts: Up to $5 million
- Interest Rates: Below-market rates (set by SBA guidelines)
- Repayment Terms: 5–25 years
- Best For: Businesses needing long-term, low-cost financing
4. Equipment Financing
- Loan Amounts: Up to 100% of equipment cost
- Interest Rates: Fixed, typically 4%–10%
- Repayment Terms: 1–7 years
- Best For: Purchasing machinery, vehicles, or technology
Table: Comparison of TD Bank Business Loan Types
| Loan Type | Amount Range | Interest Rates | Repayment Term |
| Term Loan | $10K–$1M+ | ~6%+ (fixed/var.) | 1–10 years |
| Business Line of Credit | $10K–$500K | Prime + margin | Revolving (up to 5 yrs) |
| SBA Loan | Up to $5M | SBA-regulated | 5–25 years |
| Equipment Financing | Up to 100% cost | 4%–10% (fixed) | 1–7 years |
Eligibility Requirements for a TD Bank Business Loan
Before applying, borrowers should ensure they meet TD Bank’s eligibility criteria. While requirements vary by loan type, general qualifications include:
1. Credit Score
- Minimum FICO: 680+ (preferred for competitive rates)
- Lower scores (600–679) may qualify but with higher interest rates.
2. Time in Business
- Startups: May need strong personal credit and collateral.
- Existing Businesses: Typically require 2+ years of operation.
3. Annual Revenue
- Minimum Revenue: $100,000+ (varies by loan size).
4. Debt-to-Income (DTI) Ratio
- Ideal DTI: Below 40% (lower ratios improve approval odds).
5. Required Documents
- Business tax returns (last 2 years)
- Personal tax returns (for owners with 20%+ stake)
- Bank statements (3–6 months)
- Business financial statements (P&L, balance sheet)
- Business legal documents (licenses, EIN, articles of incorporation)
Step-by-Step Guide to Applying for a TD Bank Business Loan
Step 1: Determine Loan Needs
Borrowers should assess:
- How much funding is required.
- if they require flexible access (line of credit) or a lump sum payment (term loan).
Step 2: Check Eligibility
- Review credit reports (free via AnnualCreditReport.com).
Determine the DTI ratio by dividing the monthly debt payments by the total monthly income.
Step 3: Gather Documentation
To speed up the procedure, get the required documents ready (see above).
Step 4: Apply Online or In-Branch
Online Application Process:
- Visit TD Bank’s Business Loans page.
- After selecting the preferred loan type, click “Apply Now.”
- Fill out the application form (business/personal details, financials).
- Upload supporting documents.
5. Send it in and wait for a response from a loan officer, which usually takes two to five business days.
Suggested Screenshot Placement: TD Bank’s online application portal interface.
In-Person Application:
- Make an appointment with a business lender from TD Bank.
- Bring all documents for immediate review.
Step 5: Review Loan Offer
If approved, borrowers will receive terms including:
- Loan amount
- Interest rate (fixed or variable)
- Repayment schedule
- Fees (origination, late payment)
Step 6: Accept Funds
- Sign the agreement electronically or in person.
- Funds are typically disbursed within 5–10 business days.
Tips to Improve Approval Odds
- Boost Credit Score: Pay down debts and correct errors on credit reports.
- Lower DTI: Reduce existing debt before applying.
- Offer Collateral: Secured loans have higher approval rates.
- Prepare a Strong Business Plan: Demonstrates repayment ability.
FAQ: Common Questions About TD Bank Business Loans
1. What credit score is needed for a TD Bank business loan?
A FICO score of 680+ is ideal, but some loans may accept lower scores with collateral.
2. How long does funding take?
Approval takes 2–5 days; funding arrives within 1–2 weeks after approval.
3. Can startups qualify?
Yes, however they might require a strong business strategy and good personal credit.
4. Are there prepayment penalties?
Most TD Bank loans do not penalize early repayment, but borrowers should confirm terms.
Alternative Lenders If Denied
If TD Bank declines an application, consider:
- Bank of America (competitive SBA loans)
- Wells Fargo (flexible credit lines)
Online lenders with better rates and quicker approvals include Fundbox and Kabbage.
Final Thoughts & Next Steps
TD Bank offers robust financing solutions for businesses at various stages. By preparing documentation, understanding eligibility, and following the application steps carefully, borrowers can enhance their chances of securing funding.
Ready to apply? Visit TD Bank’s business loans page today or schedule a consultation with a loan specialist to discuss options.
