Where "Apply" Takes You at America's Five Biggest Banks

The biggest banks in the country still make it surprisingly difficult to apply online for a business loan or line of credit. Of the five largest, only two let a prospective customer start an application online. A third only lets existing customers apply.

I went to each bank's small business lending pages and clicked "Apply," or the closest thing to it, to see where it actually takes you.

Where "Apply" takes you:

Chase: "Find your nearest branch." The header of Chase's business line of credit page has one button, and it's a branch locator. Further down, under "How do I apply?", Chase says to call your Business Relationship Manager if you have one. Otherwise, visit a branch.

Citi: "Request a call." Citi's small business lending page leads with "Business loans and lines of credit" in big type and a single button to request a call from a Citibank Business Specialist. If you're ready to move forward, the page suggests visiting a branch.

Bank of America: log in first, or schedule an appointment. Bank of America does have an online application. Clicking through from its unsecured business loans page lands you on a sign-in page explaining that you need to log in to Small Business Online Banking first. If you're not a customer, your option is to schedule an appointment.

U.S. Bank: online application. The business loans page leads to an application anyone can start. It takes a couple of clicks, including a page asking whether you want to use collateral before you've entered anything. Unsecured loans go up to $50,000, and secured loans up to $250,000.

Wells Fargo: online application. The business lines and loans page lets you apply online for up to $100,000. One caveat: that online option is a line of credit. Wells no longer offers conventional small business term loans, only SBA and commercial real estate loans.

Wells Fargo is the best of the five

Wells Fargo has the best landing page and application start of the five. It also puts information on the page that many banks don't: a rate range of Prime + 1.75% to Prime + 9.75%, at least six months in business, and a typical guarantor credit score of 680. A business owner can get a rough sense of whether they qualify before they ever talk to anyone.

The flow does get tougher quickly. Page one asks for your Social Security number. That's a big ask for someone who is still just checking whether they might qualify, and it's exactly the moment online lenders work hard to make comfortable.

Some of this is by design

The vast majority of people who show up cold won't qualify for a bank business loan. Banks generally want time in business, steady revenue, good personal credit and often financial statements and tax returns. The people who might qualify often have questions about which product fits.

Starting with a conversation can save a lot of hassle on both sides. A conversation also gives the bank a chance to win the broader relationship: the operating account, treasury services, deposits, etc. The loan may only be one part of what they're after.

The comparison with online lenders

Compare that with OnDeck or LendingTree, where you're answering application questions within seconds. The requirements are usually right there on the page, the questions are easy to start, and many tell you upfront that checking your options won't hurt your credit score.

The dropoff in applications at the banks is certainly huge. I wouldn't be surprised if it was 10x or 20x.

There's also a measurement problem. When the button says "Find your nearest branch," the bank can't see what happens next. Someone who looks up a branch and never walks in doesn't show up in any report. The bank may never know it lost them.

Keeping the conversation without losing the applicant

I don't think the answer is necessarily to take the banker out of the process. You could still start the relationship online and hand the right prospects to a banker quickly:

• Let anyone start with a short qualifying form: time in business, annual revenue, amount needed. Route the qualified ones to a banker.

• Put the requirements and a rate range on the page, the way Wells Fargo does, so people can screen themselves.

• Wait to ask for sensitive details like a Social Security number until someone has seen they're likely a fit.

• Track what happens after the click, so you can measure what a "call us" or "visit a branch" button is actually doing.

  
  

Has anyone measured it?

The banks may be fine with that tradeoff. A conversation-first model has real advantages, and some of these banks clearly chose it on purpose.

But I'd love to know if anyone has actually measured it. If you work in marketing or lending at a bank or credit union and have looked at what happens after someone clicks "Apply," I'd like to compare notes.