Bank of America Small Business Loans: 2023 ReviewCheck Your Rate
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Overview of Bank of America
Pros and Cons of Bank of America
Types of Small Business Loans Offered by Bank of America
Secured and Unsecured Business Term Loans
Secured and Unsecured Business Lines of Credit
Business Auto Loans
Commercial Real Estate Loans
Bank of America Small Business Loan Terms, Rates, and Fees
Who May a Bank of America Small Business Loan Be Right For?
Is an existing Bank of America customer. The bank offers Preferred Rewards to eligible customers, which can mean interest rate discounts and other benefits. Has an established business. The bank will only work with businesses that have been in business (with its current ownership) for at least two years. Has excellent credit. Bank of America doesn’t disclose its minimum required credit scores, but banks typically only loan to businesses with high credit scores.
Who Bank of America May Not Be Right For
Owns a new business. Like many other banks, Bank of America generally doesn’t offer financing to startups. Can’t meet the revenue requirements. Bank of America loans require, at a minimum, annual revenues of $100,000. Needs cash fast. Unlike online lenders that often finance within 24 hours after approval, it may take several days or weeks to get access to capital with Bank of America.
Bank of America Loan Fee Structure
Bank of America Loan Repayment
Bank of America Funding Eligibility Requirements
Secured loan: At least 2 years in business under existing ownership Minimum $250,000 in annual revenue Unsecured loan: 2 years in business under existing ownership $100,000 in annual revenue Commercial real estate loan: Minimum 2 years in business under existing ownership Minimum $250,000 in annual revenue Commercial auto loan: Minimum vehicle value of $10,000 Maximum vehicle age of 5 years, less than 75,000 miles
Applying for a Bank of America Small Business Loan
Business name, address, and phone number Business tax ID Nature of business Date the business was established Business acquisition date of current ownership Number of employees Annual net profit Annual gross sales List of outstanding obligations, if any (list should include lender, current loan balance or credit limit, and monthly payment) Name, date of birth, residential address Social Security number (U.S. citizens) or passport number and country of issuance Country of citizenship and country of residence Percentage of ownership Personal income Residential status (rent or own) and monthly housing payment
Bank of America Alternatives to Consider
OnDeck: OnDeck is a well-respected online lender that offers business lines of credit and business term loans. Qualification requirements tend to be lower than Bank of America’s. However, rates tend to be higher. Biz2Credit: Biz2Credit is an online lender offering term loans, commercial real estate-secured loans, and working capital loans (which function like merchant cash advances) to small businesses. They typically fund much faster than Bank of America, but rates will likely be higher. Lendio: Unlike Bank of America, Lendio is a lending marketplace that allows you to access a wide variety of different types of business loans through a single application. They partner with both alternative and traditional lenders. Lantern by SoFi: Lantern by SoFi is a lending platform that connects borrowers to small business loans offered by some of the biggest lenders. A single application gives you access to multiple loan options, including term loans, short-term loans, business lines of credit, invoice financing, and commercial real estate loans. Loans up to $2 million are available to help you grow your enterprise.
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