Bank of America secured business loans review
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.
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
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.
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.