Bank of America secured business loans review July 2018 | finder.com
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Bank of America secured business loans review

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Are you a business owner looking for financing from a bank? Bank of America offers a secured business loan that might suit your needs.

Are you planning to buy new equipment or open a new location? One of America’s top banks, Bank of America (BofA) offers business loans with resources to help you along the application process.

Business loans are available to businesses established for two years or more. Which means that if you’re a startup, you may need to look elsewhere for a business loan.

What is a Bank of America secured business loan?

Offering loans from $25,000 to $2 million, BofA’s secured business loans are available to business owners looking to purchase inventory and materials, refinance debt or finance accounts receivables. Business loans come with competitive rates, convenient monthly repayment terms and funds received in one lump sum.

You must secure your BofA’s business loan with either a blanket lien on your assets or a certificate of deposit.

Product details

Product name. Bank of America secured business loan
Interest rate. Competitive
Loan security. Secured
Repayment type. Depends on loan terms
Minimum loan amount. $25,000
Maximum loan amount. $2 million

What are the benefits of a Bank of America secured business loan?

BofA’s secured business loans may help you get the best value for your money. They allow for easy repayment, among other benefits.

  • Competitive rates. Rates are for loans of up to five years when secured by certificates of deposit and up to three years when secured by general business assets. If you’re already a member of BofA, the bank considers its overall business relationship with you before determining a rate.
  • Receive your funds in a lump sum. Your loan funds are a one-time lump sum that you can immediately use as working capital, to improved cash flow, as debt refinancing or for inventory and materials.
  • Convenient repayment terms. Monthly repayment terms include auto-debit payment from a BofA business checking account, making it one less thing to worry about.
  • Secure your loan. You can secure your loan with a blanket lien on your assets or a certificate of deposit.

What to watch out for

BofA offers quick, convenient lending, but you might want to consider the factors below applying.

  • Rate fee. You’ll pay 0.5% of the amount financed in fees when you take out a loan with BofA.
  • No online application. Unlike many of Bank of America’s other loan options, you cannot apply online for a business loan. Instead, you must visit your local branch to apply.
  • Paperwork and processing. Applying for your loan in person means plenty of paperwork and more time to process your loan.
  • Potentially high late fees. You’ll pay a fee if you submit payment after the due date. This fee depends on your loan agreement, so make sure to read it carefully.
  • No eligibility for startups. BofA finances businesses that have been up and running for at least two years. Startups are not eligible for secure business loans.

Compare more business loans from top lenders

Rates last updated July 17th, 2018
Unfortunately, none of the business loan providers currently offer loans for these criteria.
Name Product Product Description Min Loan Amount Max. Loan Amount Requirements
LoanBuilder, A PayPal Service Business Loans
Customizable loans with no origination fee for business owners in a hurry.
$5,000
$500,000
Annual business revenue of at least $42,000, at least 9 months in business, personal credit score of 550+.
LendingClub Business Loans
With loan terms that vary from 1 to 5 years, enjoy fixed monthly payments and no prepayment penalties through this award-winning lender.
$5,000
$300,000
2+ years in business; $50,000+ in yearly sales; No bankruptcies or tax liens; At least 20% ownership of your business; Fair or better personal credit
Excel Capital Management Small Business Loans
Get personalized financing options that suit your unique business needs in just a few simple steps.
Varies by loan type
Varies by loan type
Your business must operate in the US, be at least 1 year old and have monthly revenue of $15,000+.
Kabbage Small Business Line of Credit
A simple, convenient online application could securely get the funds you need to grow your business.
$2,000
$250,000
Must have been in business for at least 1 year. Revenue minimum is $50,000 annually or $4,200 per month over the last 3 months.
OnDeck Small Business Loans
A leading online business lender offering flexible financing at competitive fixed rates.
$5,000
$500,000
Must have been in business for at least one year with annual revenue of $100K+. Must have a personal credit score of 500+.
National Business Capital Business Loans
Get a large business loan to cover your financing needs, no matter what the purpose is. Startups welcome with 680+ credit score.
$10,000
$5,000,000
Your company must have been in business for at least 6 months and have an annual revenue of at least $180,000.
Lending Express Business Loan Marketplace
$5,000
$500,000
At least 3 months in business and $10,000+ in monthly revenue. Your business might also qualify if it's been in business at least 6 months with $3,000+ in monthly revenue.
Fora Financial Business Loans
No minimum credit score requirement and early repayment discounts for qualifying borrowers.
$5,000
$500,000
Business age 6+ months. Monthly revenue $12,000+. No open bankruptcies.
Balboa Capital Small Business Loan
Short-term business financing with no minimum credit score or physical paperwork required.
$2,500
$250,000
Must make $300,000 in annual revenue and be established for at least one year prior.
LendingTree Business Loans
Multiple business financing options in one place including: small business loans, lines of credit, SBA loans, equipment financing and more.
Varies by lender and type of financing
Varies by lender and type of financing
Varies by lender, but you many require good personal credit, a minimum business age and minimum annual revenue.

Compare up to 4 providers

What information do I need to apply?

To apply for a secured business loan, you’ll need to call or visit your local branch. You can make this appointment online.

On the day of your appointment, arrive with the following personal and business information:

  • Your business name and street address (no PO boxes), including the date you moved to that address
  • Your phone number
  • The nature of your business and number of employees
  • The date you established your business or the acquisition date of its current ownership
  • Your tax ID
  • Annual net profit and annual gross sales
  • List of any outstanding obligations

BofA also requires the following information regarding your business’s owner or guarantor:

  • Full name and home street address (no PO boxes)
  • Home phone number
  • Social Security number and date of birth
  • Personal income
  • Residence status and monthly housing payment

I got the Bank of America secured business loan. Now what?

The BofA team is available to answer your questions and get your money to you as soon after approval as possible. Once you’re approved for financing, a representative will let you know about the various ways you can access your funds and help assist you sign your loan documentation.

You have options when paying down your loan:

  • Bill pay. If you use Bank of America’s online banking, you can schedule recurring or one-time bill payments from your checking or money market accounts.
  • By phone. Call Bank of America’s payment line to pay by phone 24/7.
  • By mail. Mail your auto loan payment and loan account number to Bank of America, N.A., P.O. Box 15220, Wilmington, DE 19886-5220.
  • In person. Pay your auto loan in person at any Bank of America branch.

You can avoid late fees by making your payments through a few options:

  • Online bill pay. Bill pay lets you set up a recurring monthly payment for your checking account so you’ll never miss a payment.
  • Change your due date. Change the due date of your payment to a more convenient time of the month to better suit your cash flow.

Bottom line

Whether you’re looking to buy new business equipment or finance your day-to-day, a Bank of America secured business loan could get you the funding you need. If you’ve been in business for over two years, learn more about BofA’s competitive rates and online payment solution.

But before signing any loan agreement, make sure to compare your business loan options to get the most for your money.

Frequently asked questions about Bank of America’s business loans

Aliyyah Camp

Aliyyah Camp is a publisher for finder.com helping folks compare personal, student, car and business loans. When she's not helping people with their personal finances, you can find her going for runs outdoors.

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