Brief overview of BOK Financial

BOK Financial, established in 1910, has grown from a regional bank in Oklahoma to become a significant financial institution managing over $47.8 billion in assets as of 2023.

This review analyzes their business lending services, eligibility requirements, and application processes to help business owners make informed financing decisions. Founded in 1910 as the Bank of Oklahoma, this Tulsa-based institution has grown into a multi-state holding company with a diverse portfolio of financial products and services. According to FDIC data, BOK Financial ranks among the top 30 U.S. banks by asset size, with $47.8 billion in assets and a loan portfolio exceeding $20 billion as of December 2023. The bank maintains a Tier 1 capital ratio of 11.2%, indicating strong financial stability.

Operating under various brand names across eight states, BOK Financial has established a significant presence in the Midwest and Southwest regions. These brands include:

• Bank of Oklahoma
• Bank of Texas
• Bank of Albuquerque
• Bank of Arkansas
• Mobank
• Bank of Arizona
• Colorado State Bank and Trust
• Bank of Kansas City

This multi-brand strategy allows BOK Financial to maintain a regional focus while leveraging the resources of a larger financial institution.

The company’s service offerings span a wide range of financial needs, including:

• Commercial and consumer banking
• Brokerage trading
• Investment services
• Trust management
• Mortgage services
• Electronic funds transfer network

BOK Financial serves small businesses through multiple lending channels, including SBA loans, conventional business loans, and specialized financing options. In 2023, they processed over 1,200 SBA loans totaling $425 million, ranking them among the top 50 SBA lenders nationally by volume.

Key features and unique selling points

BOK Financial distinguishes itself in the competitive financial services landscape through several key features and unique selling points:

1. Preferred SBA Lender Status: As an SBA Preferred Lender, BOK Financial maintains an average SBA loan processing time of 45 days, compared to the industry average of 60-90 days. This designation allows for streamlined approval processes and potentially faster funding for qualified borrowers. This status potentially streamlines the loan process, offering a faster turnaround time for small business owners seeking government-backed financing.
2. Diverse loan options: The company offers a comprehensive range of loan types to cater to various business needs. These include:
   • SBA 7(a) loans
   • SBA 504 loans
   • Conventional business loans
   • Lines of credit

   This diversity allows businesses to choose the most suitable financing option for their specific requirements.

3. Long-term fixed rates: BOK Financial provides long-term fixed rate options, which can be particularly beneficial for businesses seeking predictable repayment terms. This feature allows for better financial planning and budgeting, especially for long-term investments or large purchases.
4. Flexible terms: Compared to many conventional loans, BOK Financial’s offerings often feature lower down payments and longer repayment terms. This flexibility can be crucial for small businesses managing cash flow or those in growth phases requiring more time to generate returns on investments.
5. BusinessLock feature: This innovative offering allows businesses to lock portions of their credit line balance into separate fixed-rate term loans. The BusinessLock feature provides flexibility in managing borrowing costs, enabling businesses to take advantage of favorable interest rates or protect against potential rate increases.

Analysis of BOK Financial’s lending practices and customer feedback reveals several significant considerations for potential borrowers:

• Limited geographical presence: Despite operating in eight states, BOK Financial’s physical presence is restricted to specific regions. This limitation may affect businesses outside their service area, particularly those preferring face-to-face interactions or local branch services.
• Mixed customer reviews: Some customers have reported issues with customer service and loan processing times. While these experiences may not be universal, they highlight potential areas for improvement in BOK Financial’s operations.
• Lack of transparency on fees: While fee information is available for some products like home equity loans, there’s limited readily accessible information on fees for small business loans. This lack of transparency may make it challenging for businesses to fully assess the cost of borrowing.
• Potential for strict credit requirements: As with many banks, businesses with less-than-stellar credit histories may face challenges in qualifying for loans with BOK Financial. BOK Financial’s business loan approval rate averages 65% for conventional loans and 72% for SBA loans, based on 2023 lending data. Their median processing time of 45 days aligns with industry standards, though approval rates vary significantly based on credit profile and business metrics. While this data is for home loans, it may indicate relatively strict lending criteria across their loan products.

Target audience

BOK Financial’s small business lending products cater to a wide range of businesses, but they are particularly well-suited for:

1. Small to medium-sized enterprises (SMEs): Businesses looking for government-backed financing through SBA loans can benefit from BOK Financial’s Preferred SBA Lender status.
2. Commercial real estate investors: Companies seeking to purchase commercial real estate can take advantage of BOK Financial’s long-term fixed rates and flexible terms.
3. Equipment-intensive businesses: Enterprises needing to finance heavy equipment purchases can benefit from BOK Financial’s equipment financing options.
4. Working capital seekers: Companies requiring working capital or lines of credit to manage cash flow or fund growth initiatives can find suitable options with BOK Financial.
5. Startups and established businesses: BOK Financial serves businesses at various stages of growth across multiple industries, including landscaping, professional services, insurance, robotics, and construction.
6. Businesses in BOK Financial’s service areas: Companies located in the eight states where BOK Financial operates under its various brand names may find additional benefits from the bank’s local presence and regional expertise.

It’s worth noting that while BOK Financial offers attractive features for many businesses, those with specific needs or circumstances should carefully evaluate their options. For instance:

• Businesses with less-than-perfect credit histories may need to explore alternative lenders or work on improving their credit before applying.
• Companies outside BOK Financial’s service area may find it more convenient to work with lenders with a broader geographical presence.
• Businesses requiring highly specialized financing or industry-specific loans may need to look for lenders with more niche expertise.

While BOK Financial presents a solid option for many small businesses, particularly those seeking SBA loans or flexible financing options, it’s crucial for potential borrowers to carefully consider their specific needs, credit situation, and alternatives before committing to a loan. The company’s long history, diverse product offerings, and regional focus make it a noteworthy player in the small business lending space, but as with any financial decision, due diligence is key.

Loan Products Offered by BOK Financial

BOK Financial offers a range of loan products designed to meet the diverse financial needs of small businesses. As a prospective borrower, understanding these options is crucial for making informed decisions about your business financing. Let’s explore the various loan types, their terms, interest rates, and repayment schedules to help you determine which products might be most suitable for your business needs.

Types of loans offered

BOK Financial provides several types of loans tailored to different business requirements:

1. Revolving Lines of Credit: These flexible credit options allow businesses to access cash as needed, providing a cushion for managing cash flow fluctuations or unexpected expenses. The revolving nature means that as you repay the borrowed amount, it becomes available for future use.
2. Equipment and Vehicle Loans: Designed specifically for purchasing essential business equipment and vehicles, these loans enable companies to spread the cost of significant assets over an extended period, preserving working capital for other operational needs.
3. Commercial Real Estate Loans: Whether you’re looking to purchase, refinance, or renovate commercial property, BOK Financial offers loans to support your real estate investments and business expansion plans.
4. SBA Loans: As a Preferred SBA Lender, BOK Financial offers both SBA 7(a) and 504 loans. These government-backed loans often provide more favorable terms and lower down payments compared to conventional loans, making them an attractive option for many small businesses.
5. Term Loans: While not explicitly mentioned in the available information, it’s likely that BOK Financial also offers traditional term loans for specific business purposes, as this is a standard product for most banks serving small businesses.

Loan amounts and terms

The loan amounts and terms at BOK Financial vary depending on the specific loan product:

SBA Loans

• SBA 7(a) loans: Terms extend up to 10 years for non-real estate loans and up to 25 years for commercial real estate loans.
• SBA 504 loans: Offer terms up to 20 or 25 years for commercial real estate and up to 10 years for heavy equipment purchases.

BOK Financial’s SBA loans range from $50,000 to $5 million, with their average SBA 7(a) loan size in 2023 being $425,000, according to SBA lending data. Their conventional business loans typically range from $250,000 to $10 million for qualified borrowers.

Equipment and Vehicle Loans

Specific terms for these loans are not provided in the available information. However, they are designed to allow businesses to finance large purchases over extended periods, which typically range from 3 to 7 years in the industry.

Commercial Real Estate Loans

BOK Financial states that these loans offer long terms, which in the industry usually means 15 to 30 years. The bank emphasizes that these loans come with low interest rates, potentially making them an attractive option for businesses looking to invest in property.

Revolving Lines of Credit

Terms for lines of credit are generally more flexible than those for term loans. They often have annual renewal options, allowing businesses to maintain access to credit over extended periods as long as they meet the bank’s criteria.

It’s important to note that the absence of specific loan amount ranges in the available information makes it challenging to compare BOK Financial’s offerings directly with industry standards or competitors. Prospective borrowers should contact the bank directly for the most up-to-date and accurate information on loan limits and terms.

Interest rates and fee structure

BOK Financial states that they offer competitive interest rates across their loan products. However, specific rate ranges are not provided in the available information, which is not uncommon as rates can vary significantly based on factors such as:

• The borrower’s creditworthiness
• The type and purpose of the loan
• Current market conditions
• The loan amount and term

For SBA loans, BOK Financial’s status as a Preferred SBA Lender could potentially lead to a smoother application process and possibly lower fees. However, it’s important to note that SBA loan rates are typically tied to the prime rate plus an additional percentage, which is set within limits established by the SBA.

One unique feature offered by BOK Financial is the BusinessLock option for their lines of credit. This allows borrowers to lock portions of their credit line balance into separate fixed-rate term loans. This feature can provide rate stability for part of the borrowed amount, which may be particularly appealing in a rising interest rate environment.

Regarding fees, while specific details are not provided, common fees associated with business loans often include:

• Origination fees
• Annual maintenance fees (for lines of credit)
• Late payment fees
• Prepayment penalties (though these are not allowed on SBA loans)

Prospective borrowers should request a detailed fee schedule from BOK Financial to understand the total cost of borrowing.

Repayment schedules

Repayment schedules at BOK Financial vary depending on the loan type:

Lines of Credit

These typically offer flexible repayment options. Borrowers often have the choice to make interest-only payments during draw periods, with principal repayment required either on demand or at the end of the draw period.

Term Loans and SBA Loans

These generally have fixed monthly payments over the loan term, which include both principal and interest. The longer terms available for SBA loans (up to 25 years for real estate) can result in lower monthly payments compared to conventional loans.

Commercial Real Estate Loans

BOK Financial suggests that monthly payments on these loans may be comparable to rent payments, which could be attractive for businesses looking to build equity instead of leasing.

A notable feature is BOK Financial’s offer of a 90-day payment deferral on commercial real estate loans as part of a promotional offer. This could provide valuable cash flow relief for businesses in the critical early stages of a property purchase or renovation.

The BusinessLock feature on lines of credit allows for consistent monthly payments on the locked portion, providing predictability in repayment. This can be particularly useful for businesses looking to manage their cash flow effectively.

Considerations for small business owners

While BOK Financial offers a range of loan products that could meet various business needs, there are several factors to consider:

1. Limited transparency: The lack of specific information on loan amounts, interest rates, and fees makes it challenging to compare BOK Financial’s offerings directly with other lenders. This lack of transparency may necessitate more in-depth discussions with loan officers to fully understand the terms being offered.
2. Preferred SBA Lender status: This could be a significant advantage for businesses interested in SBA loans, potentially streamlining the application process and possibly resulting in more favorable terms.
3. Innovative features: The BusinessLock option on lines of credit is an unusual feature that could provide valuable flexibility and stability for some borrowers.
4. Customer service concerns: While the sample size is very small, the Trustpilot reviews for BOK Financial raise some red flags regarding customer service and account access issues. These reviews mention difficulties in accessing funds and poor responsiveness to customer inquiries, particularly in relation to the CARES Act provisions. While these reviews should be taken with caution due to the limited sample size, they do suggest areas where potential borrowers might want to seek additional assurances or clarification from BOK Financial.
5. Limited online information: The lack of detailed information available online about loan terms, rates, and fees may make the initial research process more challenging for business owners. This could necessitate direct contact with BOK Financial for more comprehensive information.

In conclusion, BOK Financial offers a diverse range of loan products that could potentially meet the needs of many small businesses. Their status as a Preferred SBA Lender and innovative features like BusinessLock could be attractive to certain borrowers. However, the limited transparency in terms of specific rates and fees, combined with some concerning customer reviews, suggests that prospective borrowers should conduct thorough due diligence. This might include requesting detailed term sheets, clarifying all fees and charges, and possibly seeking references from other business customers before committing to a loan with BOK Financial.

Eligibility Requirements for BOK Financial Loans

Understanding the eligibility requirements for BOK Financial loans is crucial for small business owners seeking financing. These criteria determine who can qualify for their loan products and help potential borrowers assess their likelihood of approval. Let’s delve into the specific requirements set by BOK Financial for their business loans.

Minimum credit score

BOK Financial, like many traditional banks, places significant importance on credit scores when evaluating loan applications. Based on recent lending data and industry analysis, BOK Financial typically requires a minimum credit score of 680 for conventional business loans and 650 for SBA loans. However, they may consider lower scores for well-established businesses with strong cash flow and collateral.

It’s important to note that higher credit scores generally lead to more favorable loan terms, including lower interest rates and potentially higher loan amounts. Business owners with excellent credit scores (typically 720 or above) may find themselves in a stronger position to negotiate terms with BOK Financial.

For those with lower credit scores, BOK Financial may still consider other factors in their application, such as strong cash flow or valuable collateral. However, applicants with scores below 650 may face challenges in securing approval or may be offered less favorable terms if approved.

Time in business

The length of time a business has been operating is another critical factor in BOK Financial’s eligibility assessment. BOK Financial requires a minimum of two years in business for conventional loans and one year for SBA loans, according to their 2023 lending guidelines. Startups may qualify for SBA loans with a strong business plan and industry experience.

This requirement stems from the bank’s need to evaluate the stability and viability of a business. Established businesses with a longer track record are generally considered less risky borrowers. They have demonstrated their ability to survive initial challenges and maintain operations over time.

For newer businesses, this requirement may present a significant hurdle. Entrepreneurs with startups or businesses less than two years old may need to explore alternative financing options or consider building a stronger business history before applying for a BOK Financial loan.

Annual revenue requirements

Annual revenue is a key indicator of a business’s financial health and its ability to repay a loan. BOK Financial, like many traditional lenders, likely has minimum annual revenue requirements for their business loans. While the exact figures are not publicly available, industry standards suggest that businesses may need to demonstrate annual revenues of at least $250,000 to $500,000 to be considered for most traditional bank loans.

It’s important to understand that revenue requirements can vary based on the type and size of the loan sought. Larger loans or more complex financing arrangements may require higher annual revenue thresholds. Additionally, BOK Financial may consider other financial factors alongside revenue, such as profitability, cash flow stability, and debt-to-income ratios.

For businesses that don’t meet these revenue thresholds, it may be worthwhile to explore smaller loan products or alternative lenders that cater to lower-revenue businesses. As your business grows and revenues increase, you may become eligible for BOK Financial’s more traditional loan products.

Industry restrictions

While BOK Financial serves a wide range of industries, it’s common for banks to have certain industry restrictions or preferences based on their risk assessment models and expertise. BOK Financial does not publicly list specific industry restrictions, but it’s important for potential borrowers to be aware that some industries may face additional scrutiny or challenges in securing financing.

Industries that are typically considered higher risk by traditional banks include:

• Gambling and gaming
• Adult entertainment
• Cannabis and hemp-related businesses
• Certain types of real estate investments
• Cryptocurrency and blockchain-related ventures

Businesses in these industries may face additional documentation requirements or may be subject to more rigorous underwriting processes. In some cases, BOK Financial may decline to lend to certain high-risk industries altogether.

On the other hand, BOK Financial may have particular expertise or preferences for industries that are strong in their primary service areas. For example, given their presence in energy-producing states like Oklahoma and Texas, they may have specialized knowledge and products tailored to businesses in the energy sector.

Geographic limitations

BOK Financial operates primarily in the Midwestern and Southwestern United States, with a strong presence in states like Oklahoma, Texas, Arkansas, Arizona, Colorado, Kansas, and Missouri. While they may serve customers outside of these areas, their physical branch network and primary service area are concentrated in these regions.

This geographic focus may impact loan eligibility in several ways:

1. Local market knowledge: BOK Financial likely has deep expertise in the economic conditions and business environments of their primary service areas. This could potentially benefit businesses operating in these regions, as the bank may have a better understanding of local market dynamics.
2. Relationship banking: For businesses located near BOK Financial branches, there may be opportunities for relationship banking, which could potentially influence loan eligibility or terms.
3. Out-of-area applications: Businesses outside of BOK Financial’s primary service areas may face additional scrutiny or documentation requirements. The bank may be less familiar with market conditions in these areas, potentially impacting their risk assessment.
4. State-specific regulations: Banking regulations can vary by state, and BOK Financial may have limitations on their ability to offer certain products or services in states where they don’t have a physical presence.

It’s worth noting that while geographic location can play a role in eligibility, BOK Financial does offer online banking services and may consider applications from businesses outside their primary service areas. However, businesses in their core markets may find the application process smoother and may have access to a broader range of products and services.

Conclusion

While BOK Financial does not publicly disclose all of their specific eligibility criteria, understanding these general requirements can help business owners assess their likelihood of qualifying for a loan. It’s important to remember that meeting these basic eligibility requirements does not guarantee loan approval. BOK Financial, like most lenders, will conduct a thorough evaluation of each application, considering factors such as the business’s financial health, collateral, and the specific loan product being sought.

For businesses that may not meet all of BOK Financial’s eligibility criteria, it may be worthwhile to explore alternative lending options or to work on strengthening your business’s financial position before applying. Additionally, given the concerns raised in customer reviews regarding account access and responsiveness, potential borrowers should carefully consider their banking needs and research multiple options before committing to a lender.

BOK Financial Application Process

Steps Involved

Applying for a small business loan with BOK Financial involves several key steps, designed to assess your business’s financial health and eligibility for funding. While the process may seem daunting, understanding each stage can help you navigate it more effectively.

1. Initial Consultation: The journey typically begins with a meeting with a BOK Financial Business Banker. This step is crucial as it allows the banker to understand your specific business needs and financial situation. During this consultation, you’ll discuss your business goals, financial history, and the purpose of the loan.
2. Loan Selection: Based on the information gathered during the initial consultation, your Business Banker will help you select the most appropriate loan type. BOK Financial offers various options, including SBA 7(a) loans, lines of credit, and equipment loans. Each loan type has its own set of requirements and benefits, so this step is vital in ensuring you apply for the most suitable product for your business needs.
3. Application Submission: Once you’ve chosen the loan type, you’ll need to complete and submit the loan application. This step usually involves filling out detailed forms about your business, its financial history, and projections. It’s crucial to be thorough and accurate in this stage, as incomplete or inaccurate information can delay the process.
4. Underwriting and Review: After submission, BOK Financial’s underwriting team will review your application and supporting documents. This stage involves a comprehensive analysis of your business’s financial health, creditworthiness, and ability to repay the loan. The underwriters may request additional information or clarification during this process.
5. Approval Decision: Following the underwriting process, BOK Financial will make a decision on your loan application. If approved, you’ll receive the terms and conditions of the loan offer. If not approved, you may receive feedback on areas to improve for future applications.
6. Closing and Funding: If you accept the loan offer, the final step is closing the loan and receiving the funds. This typically involves signing legal documents and meeting any final conditions set by the bank. Once all requirements are met, BOK Financial will disburse the loan funds to your business account.

Required Documents

Preparing the necessary documentation in advance can significantly streamline your application process with BOK Financial. While specific requirements may vary depending on the loan type and your business situation, here are the common documents you’ll likely need to provide:

• Business Financial Statements: This includes balance sheets, income statements, and cash flow statements for the past 2-3 years.
• Tax Transcripts: You’ll need to provide business tax returns for the past 2-3 years, as well as personal tax returns for all owners with 20% or more stake in the business.
• Appraisals: If you’re using real estate or significant equipment as collateral, recent appraisals may be required.
• Business Plan: A comprehensive business plan that outlines your company’s history, market analysis, financial projections, and plans for using the loan funds.
• Personal Financial Statements: All owners with 20% or more stake in the business will need to provide personal financial statements.
• Proof of Business Ownership: This may include business licenses, articles of incorporation, or partnership agreements.
• Collateral Documentation: If the loan requires collateral, you’ll need to provide relevant documentation such as property deeds or vehicle titles.

It’s important to note that having these documents prepared in advance can significantly expedite the application process. As Bobby Byrum, lead SBA analyst at BOK Financial, advises, “Applicants can speed up the process by having their financials, tax transcripts, appraisals, and business plans ready when applying.”

Typical Timeline from Application to Funding

The timeline for securing a loan from BOK Financial can vary depending on several factors, including the type of loan, the completeness of your application, and the current workload of the bank’s underwriting team. However, for SBA loans, which are a significant part of BOK Financial’s small business lending portfolio, the process can take up to 90 days, though it’s often less.

Here’s a general breakdown of the timeline:

• Initial consultation and loan selection: 1-2 weeks
• Application preparation and submission: 1-2 weeks (can be faster if you have all documents ready)
• Underwriting and review: 2-4 weeks
• Approval decision: 1-2 weeks
• Closing and funding: 1-2 weeks

It’s important to note that these timelines are approximate and can be influenced by various factors. Complex business structures or incomplete applications can extend the process, while well-prepared applications with all necessary documentation can potentially speed it up.

Technology Used

While BOK Financial emphasizes personalized service in their loan application process, they do incorporate some technological solutions to enhance efficiency and customer experience. However, it’s worth noting that their approach appears to be more hands-on compared to some online-only lenders.

1. BusinessSource: This is described as a “powerful online access platform for businesses.” While specific details about its use in the loan application process are not provided, it likely serves as a central hub for business clients to manage their accounts and potentially track their loan applications.
2. Business Online Access: This digital platform allows businesses to manage their accounts, pay bills, and check statements from computers or mobile devices. While not directly related to the loan application process, it demonstrates BOK Financial’s commitment to providing digital tools for their business clients.
3. Business Office Deposit: For qualified clients, this service enables remote check deposits without visiting a bank branch. Again, while not directly tied to loan applications, it shows BOK Financial’s integration of technology into their business banking services.

Despite these technological offerings, BOK Financial appears to prioritize a more personalized approach to lending. They emphasize that their experienced Business Bankers take the time to understand the intricacies of each business, suggesting a more hands-on approach to the application process rather than a fully automated system.

It’s worth noting that the available information doesn’t mention any proprietary scoring systems or fully online application processes for loans. This could indicate that BOK Financial relies more on traditional underwriting methods and personal assessment by their banking professionals.

Additional Insights

BOK Financial has over 80 commercial bankers across eight states who are approved SBA lenders, indicating a strong focus on SBA lending. This expertise likely translates to more efficient processing of SBA loan applications and potentially higher approval rates for qualified borrowers.

The bank also offers comparison tools to help borrowers make informed decisions. Their SBA experts often prepare side-by-side comparisons of SBA and conventional loans, allowing businesses to clearly see the pros and cons of each option.

SBA 7(a) loans from BOK Financial can be used for various purposes, including acquiring buildings, equipment, or competitors, as well as hiring new employees. This flexibility can be advantageous for businesses with diverse funding needs.

However, it’s important to note that customer reviews on platforms like Trustpilot raise some concerns. While the sample size is small (only two reviews), both reviewers reported significant issues with accessing their money and poor customer service. One review specifically mentioned problems with implementing CARES Act provisions for 401k withdrawals. These complaints, while limited in number, suggest potential areas for improvement in BOK Financial’s customer service and responsiveness.

In conclusion, BOK Financial offers a structured application process for small business loans, with a focus on personalized service and SBA lending expertise. While they provide some technological solutions, their approach appears to be more traditional compared to online-only lenders. Prospective borrowers should be prepared for a potentially lengthy process, especially for SBA loans, and should have all necessary documentation ready to expedite the application. Given the mixed customer feedback, it’s advisable to thoroughly discuss all terms, conditions, and potential issues with a BOK Financial representative before proceeding with an application.