Bank of America Business Loans Review
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Pros and cons of
Pros
- Wide array of business lending products
- Rate discounts available for veterans and Bank of America Preferred Rewards members
- Relatively low minimum loan amounts compared to other big banks
- Cash-secured credit line available to help new businesses build credit and business history
Cons
- Not transparent about maximum rate ranges
- Most products only list interest rates, not APR, making it hard to determine the total cost
- May need to apply over the phone or in person
- Limited options for startups
- Negative customer reviews on Trustpilot and Better Business Bureau
small business loans review
is a traditional bank lender offering a diverse selection of business products, merchant solutions and resources to help business owners grow and succeed. With over 3,000 branches nationwide, this bank could be a good fit if your business needs extra in-person support or services like access to local networking opportunities or safe deposit boxes. Small business financing options include term loans, lines of credit, auto loans, equipment financing, SBA loans and more. rates are considered competitive, with minimum rates listed for almost all products.
Most lending products are geared toward well-established companies with at least two years of business history, although early-stage startups can apply for a cash-secured line of credit after only six months in business. Getting a startup business loan with could help boost your business credit profile, helping you qualify for more funding down the road.
In addition, there are a range of opportunities and perks available for underserved members, such as the Center for Women Entrepreneurs and rate discounts for veteran business owners. Business members can also enjoy cashback bonuses and discounts via Preferred Rewards for business program.
Despite all that has to offer, be aware that customer reviews are on the low side — only 1.3 out of five stars on Trustpilot, and 1.12 out of five stars on Better Business Bureau. Consumers complain about poor customer service, long wait times on the phone, difficulty navigating its website and high fees for basic services.
- Business owners with good to excellent credit. If you want to take out an unsecured loan or line of credit, you’ll need a personal FICO Score of at least
Preferred Rewards program
One perk to using checking account, you can receive exclusive rewards, discounts and benefits on your business loans and products — all for free.
As seen below, interest rate discounts are based on your business’s tier, determined by a three-month average daily balance. Other benefits of the Preferred Rewards program include a 5% interest rate booster for savings, $10 cash back for payroll services, complimentary financial analysis with a Merrill® Financial Solutions Advisor, no monthly maintenance fees and more.
While other banks offer certain business perks, such as Chase’s Ultimate Rewards program for any of its business credit cards, Preferred Rewards program for your personal accounts and credit cards.
Preferred Rewards Member Tiers
| Tier | Three-month average daily balance | Interest rate discount |
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| Gold | $20,000 to $49,999.99 |
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| Platinum | $50,000 to $99,999.99 |
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| Platinum Honors | $100,000 or more |
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small business financing at a glance
| Product | Loan amounts | Repayment term | Estimated interest range | Fees |
|---|---|---|---|---|
| Unsecured term loans | Starting at | months | Starting at | origination fee |
| Secured term loans | Starting at | Up to months | Starting at | of amount financed as origination fee |
| Unsecured lines of credit | Starting at | Revolving with annual review | Starting at | No cash advance fees |
| Secured lines of credit | Starting at | Revolving with annual review | Starting at | Upfront and renewal fees:
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| Cash-secured lines of credit | Starting at | Revolving | Variable |
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| Business auto loans | Starting at | months | Starting at APR APR rates include the cost of the interest rate and any other standard fees | Not disclosed |
| Equipment financing | 12 to months | Starting at | origination fee | |
| Commercial real estate loans | Starting at | Up to months | Starting at | upfront fee |
| SBA 7(a) loans | Up to months | for variable-rate loans | Not disclosed | |
| SBA Express loans | Up to months | for variable-rate loans | Not disclosed | |
| SBA 504 loans | Starting at | Up to months | About 3.00% Terms and rates based on SBA guidelines. | Not disclosed |
Unsecured term loans
Secured term loans
Secured term loans require collateral, but interest rates are typically lower than unsecured products — starting at
Veterans can qualify for a 25% reduction on origination fees — to claim the discount, you’ll need to provide proof of your service.
Unsecured line of credit
With a business line of credit, you can borrow up to your credit limit as often as needed — only paying interest on the withdrawn amounts. You can use the funds for long-term or occasional expenses, such as hiring new staff or seasonal dips in revenue.
Secured line of credit
While secured business lines of credit can unlock lower interest rates, you typically need to provide a blanket lien on your assets or a certificate of deposit (CD). Credit lines start at charges the following fees for secured lines of credit:
- For amounts up to $100,000: $150 upfront and annual review fee
- $100,000.01 to $250,000: $250 upfront and annual review fee
- $250,000.01 and up: 0.50% of the credit limit
Cash-secured line of credit
A cash-secured line of credit from
Business auto loan
You can borrow
The vehicle must meet the following requirements to be eligible for financing:
- Weight under 2.5 tons
- Have less than 75,000 miles
- Be valued at least $10,000
- No more than five years old
You can talk to a specialist to discuss other options, such as vehicle leasing.
Equipment financing
Vehicles weighing over 2.5 tons and other types of equipment can be financed through
Commercial real estate loans
SBA 7(a) loans
can typically approve and fund your SBA loan in around two weeks, compared to the average turnaround time of 30 to 90 days. (The SBA takes two to 10 days to approve 7(a) loans, but that doesn’t include the time it takes for the lender to approve the loan, which can add a significant amount of waiting time.)
SBA Express loans
SBA Express loans are similar to SBA 7(a) loans, except with smaller loan amounts and faster turnaround times. While standard SBA 7(a) loan applications can take five to 10 business days for the SBA to review, SBA Express loans take a maximum of 36 hours – but that doesn’t include the time it takes
SBA 504/CDC loans
SBA 504 loans are often issued for real estate, machinery or equipment, with a maximum term of
Health care practice loans
in financing for dentists, physicians, optometrists and veterinarians. Suggested uses for financing include starting a new practice, acquiring a practice, expanding your practice and consolidating debt.
Franchise financing
There’s even a dedicated team specifically for McDonald’s franchise financing.
borrower requirements
| Minimum annual revenue |
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| Minimum time in business |
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| Minimum credit score |
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business loan requirements vary by product. The easiest product to get is the cash-secured line of credit, which requires the least amount of business history and revenue. All other conventional loan products require at least two years of business history with minimum annual revenue requirements of at least $100,000.
While
Be aware that unless you have an excellent credit score, it’s likely the interest rate you’re offered will be higher than the advertised starting interest rates. Check out LendingTree Spring to help you monitor and improve your credit score.
Required documents
When you apply for a business loan with the , you can expect to provide some or all of the following info and documents about your company:
- Business name, address and phone number
- Business tax ID or Employer Identification Number (EIN)
- Industry and business start date
- Date of acquisition (if applicable)
- Number of employees
- Annual gross sales and net profit
- Recent personal and business tax returns
- Business’ outstanding debts, including lender name, account balance and monthly payment amount
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Personal information for all owners/guarantors/controlling managers:
- Name and title, date of birth and Social Security or passport number
- Personal income
- Monthly housing payments
Gathering all required paperwork in advance can speed along the loan application process, helping you access your funds faster.
Alternatives to
| KeyBank | PNC | ||
|---|---|---|---|
| Minimum credit score | for unsecured lending products | Not disclosed | Not disclosed |
| Loan products offered |
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| Starting interest rate |
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| Not disclosed |
| Loan amounts |
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| Minimum annual revenue |
| Minimum not disclosed, but has maximum caps for SBA loans:
| Not disclosed |
| Minimum time in business |
| for SBA loans |
Even though it only lists starting rates and amounts for most products, is still more transparent than other large, traditional financial institutions. If you’re trying to figure out which bank has the most competitive rates, the best way to find out is to fill out applications at multiple financial institutions.
vs.
could be a great choice for those wanting to explore an extensive range of SBA options, such as SBA International Trade Loans or Working Capital CAPLines — products not offered by . As an SBA Preferred Lender, SBA products are only offered in 17 states, although its conventional products are more widely available. In comparison, SBA products appear to be offered nationwide.
Businesses need to operate for a minimum of three years to qualify for SBA financing with , with no details on requirements for its other lending products. In comparison, early-stage startups can consider the cash-secured line of credit with after just six months of operation. At first glance, offers higher funding amounts, such as up to with its SBA 504/CDC loan. That said, doesn’t publicly disclose maximums for all of its products.
Unlike , doesn’t list any details regarding its business loan interest rates. While it could offer competitive rates, you won’t know for sure until you submit an application.
vs.
is another traditional bank offering a wide selection of conventional and SBA loans for businesses of all sizes. Like , requires a minimum of two years in business to qualify for most products, although they may be able to offer creative funding solutions for startups.
small business loans have lower minimum borrowing amounts, with both banks having the same maximum for the SBA 7(a) loan. However, large corporations generating $5 million or more a year might be eligible for corporate funding — which can go up to or higher.
doesn’t publicly disclose its rates and fees, so you’ll need to apply to both banks to find out which one is right for you. Keep in mind that you may be eligible for interest-rate deductions with Preferred Rewards program, whereas only offers rewards for its business credit card.
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