Our Take
4.8
The bottom line:
Bank of America Business Advantage Unsecured Term Loan
Pros & Cons
Pros
- Several types of business loans available.
- Competitive interest rates.
- Preferred Rewards program can offer interest rate discounts and other perks.
- Offers specialized commercial real estate, equipment and healthcare practice financing.
- Fee discounts available for veteran-owned businesses.
Cons
- Multiple years in business required to qualify.
- May need to visit a Bank of America branch or schedule a phone appointment to apply.
- Personal guarantee likely required.
Full Review
How much do you need?
We’ll start with a brief questionnaire to better understand the unique needs of your business.
Once we uncover your personalized matches, our team will consult you on the process moving forward.
Bank of America is best for borrowers who:
- Have established businesses. Bank of America requires that your business be under current ownership for at least two years in order to qualify for most types of financing.
- Are current Bank of America customers. Small-business owners with eligible Bank of America and/or Merrill business bank accounts can qualify for the Preferred Rewards program, which offers interest rate discounts, as well as other benefits.
- Don’t need cash fast. Bank of America offers limited online loan applications. More likely than not, you’ll need to apply for a business loan over the phone or in person. However, if timing isn’t a top concern you’ll be able to benefit from the competitive interest rates and loan terms that Bank of America can offer.
Types of Bank of America business loans
- Secured and unsecured term loans.
- Secured and unsecured lines of credit.
- Business auto loans.
- Equipment financing.
- Commercial real estate loans.
- Franchise financing.
- Healthcare practice loans.
Bank of America business loans and lines of credit features
Secured Business Loan | Business Advantage Unsecured Term Loan | Secured Business Line of Credit | Business Advantage Unsecured Line of Credit | Cash Secured Line of Credit | |
---|---|---|---|---|---|
Loan amount | $25,000 to $250,000. | $10,000 to $100,000. | $25,000 and up. | $10,000 and up. | $1,000 and up. |
Time in business required | 2 years. | 2 years. | 2 years. | 2 years. | 6 months. |
Minimum annual revenue required | $250,000. | $100,000. | $250,000. | $100,000. | $50,000 in annualized revenue. |
Fees | Origination fee: 0.5% of financed amount. | $150 origination fee. | Upfront and renewal fees vary based on credit line amount.
$25,000 to $100,000: $150 fee.
$100,001 to $250,000: $250 fee.
Above $250,000: 0.5% of the credit line amount. | None. | No origination fee. $150 annual fee (waived the first year). |
Terms | Up to four years when secured by business assets. Up to five years when secured by certificate of deposit. | 12 to 60 months. | Revolving terms with annual renewal. | Revolving terms with annual renewal. | Revolving terms with annual renewal. (Opportunity to move to an unsecured line of credit after 2 years in operation.) |
Repayment schedule | Monthly. | Monthly. | Monthly. | Monthly. | Monthly. |
Bank of America business auto, equipment and real estate loans features
Business Advantage Auto Loan | Equipment Loan | Commercial Real Estate Loan | |
---|---|---|---|
Loan amount | $10,000 and up. | $25,000 and up. | $25,000 and up. |
Time in business required | Undisclosed. | 2 years. | 2 years. |
Minimum annual revenue required | Undisclosed. | $250,000. | $250,000. |
Fees | No application fee. | Origination fee: 0.5% of financed amount. | Upfront fee: 0.75% of financed amount.
Additional fees and closing costs such as property insurance, flood hazard insurance and/or appraisal may apply. |
Terms | 48 to 72 months. | Up to five years when secured by business assets. | Up to 10 years with balloon payment. Up to 15 years with full amortization. |
Repayment schedule | Monthly. | Monthly. | Monthly. |
Bank of America SBA loans
Bank of America SBA loan features
Loan amount | $25,000 to $5 million. |
Estimated APR range | Varies based on your business’s qualifications, but subject to SBA maximums. |
Fees | Guarantee, origination, packaging, processing and other miscellaneous fees may apply. |
Repayment terms | Maximum of 25 years. |
Repayment schedule | Monthly. |
Where Bank of America stands out
Variety of loan options
Competitive rates and terms
Discounts and rewards available
- An active Bank of America business checking account.
- Three-month combined average daily balance of $20,000 or more in qualifying Bank of America business deposit accounts and/or Merrill business investment accounts.
Where Bank of America falls short
Hard to qualify
Slow application process
Limited information available online
How to apply for a business loan from Bank of America
- Business name, address and phone number.
- Business tax identification number.
- Nature of the business, date of establishment, number of employees.
- Annual net profit and annual gross sales.
- List of outstanding debt obligations (if applicable).
- Name, date of birth, residential address.
- Social Security number (for U.S. citizens) or passport number and country of issuance (for foreign individuals).
- Country of citizenship and country of residence.
- Percentage of ownership.
- Personal income.
- Residential status (rent or own) and monthly housing payment.
Alternatives to Bank of America business loans
iBusiness Funding
Bluevine
Compare your business loan options
Methodology
New elevated offer