Bank of america small business loan
Have you decided to start a small business of your own Running short of fund No matter, the Bank of America is at your service to provide you a loan. No matter what type of business you want to start. There are lots of options available; you can choose the best one suited to you.
So, have a nice sleep as the Bank of America is known for its smart and quick service for the customers. The best of the service is for you provided your papers and other requirements found in order. The Bank of America is the largest commercial bank in US. The HQ of this bank is situated in Charlotte, North Carolina. Measured with regard to deposits, Bank of America smal business loan has been rated as the third largest in the world by the 2006 Forbes Global 2000. The Bank of America is well known for its global reach in a significant way. Besides, US it has its reach in Canada, middle-east, Asia, Europe, Africa and Latin America.
There are three main divisions of Bank of America. These divisions are: a) Global Consumer and Small business banking (GC&SBB), b) Global Corporate & Internet Banking (GCIB), and, c) Global Wealth & Investment Management (GWIM). Among the divisions, the first one, i.e., GC&SBB, will deal your matter of getting a small business loan.
Why a person needs a Bank of America smal business loan There are many factors related to it. It may be because of starting a whole new small business. Moreover, there are several other factors with regard to it. One may need a small business loan for other purposes like, improving the cash flow related to the business, to have payroll funds, to met with seasonal and permanent working capital, to get emergency cash, etc. In addition to this, the requirement of loan may also be needed for other purposes like, fixed asset purchase, permanent working capital, business expansion to other fields, or acquisition of other business, etc. Now, let us see the steps ahead to get a business loan As a first step, the person has to apply online to get a loan or by calling the Bank of America people at 1.888.600.4000. However, if someone wants to apply online for a loan, then he needs to establish a user ID and password. The website will provide all necessary information and guidance in this regard. The person interested for the loan has to accept all the terms and conditions of the product framed by the Bank. In case of making a call to the above-mentioned number, the auto answering machine or the customer friendly representatives will guide the person with all details. Now let us see, what are the different ways to obtain the funding for the small business First, the person has to decide about his plan in details. What type of small business he wants to start, then going through all the pre-steps like market survey, details about availability of resources/ raw materials, details about availability of skilled or unskilled labour, etc, the interested person can move further.
Then once the person has decided all above, he has to finalize how much of amount he needs and then he may choose to go to small business administration (SBA). The Small Business Administration will furnish all the details of loan facilities. The SBA has facilities of different types of SBA Government guaranteed start-up loans. The person can get the benefit of these loans. Let us look at what a SBA loan is and what is the relationship with the Bank of America SBA is nothing but a federal agency, which provide help and support to establish the growth of a business and also helps to start an entire new business. The Bank of America is also an active participator with SBA in providing loans. The SBA Express loan is the primary lending program. In addition to this, one can go to Loans, Lines and Leases in order to find out about various conventional loans and lines of credit that Bank of America provides for small business. Now, there may be confusion in the mind that, whether the person should choose a loan or a line of credit or a lease This is again depending on what the purpose is. Lets look at this matter in short. In case of a term loan, a term loan provides the finance to the person for related capital expenditures. Such capital expenditures may be fixed assets or other equipment needs. As a rule, these may be amortized for a longer period of time, say, 1 to 5 years period. Whereas, in case of a line of credit, it will facilitate the person with more flexibility and convenience to easily access funds as per the need of the customer. This type of facility is for short term financing needs. For this, there is no need to apply for a new loan. Lastly, in case of a lease, it is related with a vehicle or equipments. A lease can provide the customer with a vehicle or equipment loan along with some additional benefits.
In order to start a Bank of America smal business loan, there are different types of loans available from Bank of America. Lets see, how actually a loan can support your business A loan gives your business an instant flow of funds. The said fund may be required for different or a specific purpose to strengthen or to give a boost to your business. The said loans can be secured or unsecured one. This depends on the basis of the total asset you opt for financing. The said finance of your asset again can be based on fixed or variable rates. In Bank of America, there is a provision for payment of this rate via auto-debit system. If the person chooses this option, then the Bank of America gives a rate discount. This payment can be made from Bank of America business checking account. The loan from Bank of America can be of different types. You can get the loan say as,
* Unsecured loan,
* Equipment loan
* Real Estate loan
* Investment-secured loans
* Vehicle loan
* Agriculture loan
Let us look at the varieties of loans one by one.
Unsecured loan: Unsecured loans are approved with a quick approval process. By this type of loan, the borrower can get a competitive loan with fixed-rate financing for different purposes. The advantage for this type of loan is, the use of business or personal assets as collateral/guarantee is not mandatory. Now, let us see, for which type of person, the Bank of America designs the unsecured loan. Unsecured loans are designed and best fitted for those business owners who needs the credit for say, purchasing inventory and materials. Moreover, a person interested for purchasing a vehicle or any sort of equipments for his business can also avail this facility. The businessman who needs an improved cash flow and also a permanent working capital can select unsecured loans as one of the best options. Such type of loan is also suitable for refinancing debt purpose and also for financing accounts receivable purpose. Such type of loan is available up to the amount of $ 1,00,000. The Bank of America provides a one-time lump sum with fixed monthly payments. The maximum term for secured loan is up to 3 years. For the borrowers of unsecured loan, the annual fee is $0. Whereas, the origination fee is $200, in case the loan is below $50,000. Then for loans greater than the said amount, 0.5% of loan amount is required. Moreover, if the borrower chooses to make payment via auto-debit from a Bank of America business checking account, then there is a discount of 1%.
Equipment loan: If the borrower wants to purchase any equipment, no matter new or used equipment, this type of loan is available. Various equipments related to printing or distribution, such a loan is available. Moreover, this type of loan is also available to purchase a heavy duty truck say 2.5 tons or more. In addition to these, as per provision of the Bank of America, the equipment loan is also available for the borrowers to purchase computers, machine tools and even an aircraft. The advantage of this type of loan is that borrower can borrow up to 100% of the purchase prices at a competitively fixed rate. It is understood that, equipment loans are available for those borrowers who wants the loan to procure finance for new or used equipment. The minimum amount is $ 5000 and it may be more. As told, the rate of interest is competitively fixed and provides lump sum fixed payments, which is to be payable monthly. The term period varies for different equipments. For example, the term period is up to 6 years in case of normal equipments, up to 7 years for heavy duty trucks and what about an aircraft For an aircraft, it is up to 15 years. Sounds good Yes, of course, the period is friendly to the borrowers. Just like the unsecured loan, the annual fee is $0. The origination fee is $200, again in case the loan is below $50,000. For a loan amount greater than the said amount, 0.5% of loan amount is required. Moreover, if the borrower chooses to make payment via auto-debit from a Bank of America business checking account, then as usual, there is a discount of 1%.
Real Estate loan: Real Estate loans are suitable for those borrowers who want to finance new or existing commercial real estate. Bank of America real estate loans helps the borrower to finance real estate assets. This Real estate loan may be related with different aspects of Real Estate field such as construction of a real estate, purchase of a real estate, re-financing an owner occupied business property. The said loan is also available to expand or remodel existing facilities. The term for payment is up to 20 years. The payment option is what we call as a balloon option. This loan is available from minimum of $5000 onwards. This loan provides a one-time lump sum amount. Another important point with regard to this type of loan is the funds will be distributed as per the schedule of the construction and not together. This is secured by the owner-occupied real estate. Just like the above-mentioned loans, the annual fee for Real Estate loan is $0. The origination fee is 1% of the loan amount. Moreover, if the borrower chooses to make payment via auto-debit from a Bank of America business checking account, then like in other cases, 1% discount will be provided to the borrowers.
Investment-secured loan: The Bank of America has designed this type of loan in such a way that, this option is called as the most flexible loan option. The feature of Investment-secured loan is to increases borrowers access to the capital and provides him with more flexible payment options in comparison to other loan options. Such type of loans is designed for the borrowers who need credit for purchasing inventory and materials, purchasing vehicles and equipment and just like the options as stated in the case of an unsecured loan. Such loan is available up to $ 1,00,000. The borrower can use his CDs, marketable securities, or his savings to secure such a loan. This loan is also providing one-time lump sum fixed monthly payment option. There are both competitive fixed or variable rate of interest. Maximum term, period for Investment-secured loan is up to 5 years. There are convenient monthly repayment terms including the auto-debit payment facility as stated above and in this regard, the 1% discount is also there. The annual fee is $0. Whereas, the origination fee is $200, in case the loan is below $50,000. Again for loans greater than the said amount, 0.5% of loan amount is required.
Vehicle loan: The borrower of a vehicle loan can borrow up to 100% of the purchase price. The Bank of America has given this option to procure new as well used auto vehicles or a van or a truck, less that 2.5 tons. There is a competitive fixed rate. The loan is available for a minimum amount of $5000 or above amount. This loan option also provides one-time lump sum fixed monthly payments. The rate of interest is fixed. The loan is secured by the vehicle, which has to be purchased. The available term is up to 6 years. The annual fee is $0. The origination fee varies from $25-100. In case of discounts, there is only 0.25% discount if the borrower pays via auto-debit from Bank of America business checking account.
Agriculture loan: As the name of the loan depicts, this type of loan is available for agricultural purpose. If the borrower wants to finance any equipment, land, or production related to agriculture, farming and ranching then agricultural loan is available at Bank of America. The payment option is also different from other. There are payment options of paying quarterly, half yearly and annually. The loan is suitable for borrowers who need finance for both crop and livestock production expenses. Moreover, for the purpose of breeding livestock, the loan is available. It is also available for the cause of purchasing land for farming and ranching. The loan amount is for a minimum of $ 5000 and above. This facility provides one time lump sum monthly payment option. This is secured by the equipment or land you are financing. Repayment term may be quarterly, half yearly, or, annually. There is also another feather to its cap. There is a support system provided by a specialized agricultural lending team. The maximum term period of such loan is up to 7 years. For Assurance of the Farm service Agency (FSA) Guarantee programme, the Bank of America is a most preferred lender. The annual fee is again $0 and the origination fee is 1% of the loan amount. If the customer pays through the auto-debit option, 1% discount will be provided.
So, these are the different options of Bank of America smal business loan purpose provided by the Bank of America. Let us conclude the discussion with certain advantages related to loans provided by Bank of America for small businesses. The first and foremost is, Bank of America smal business loan is the most trusted financial advisor available in US. This Bank is dedicated and supported with a smart team for the success of entire plan made by the customer. The business financial options have been found to be friendly and easy as the Bank of America has varieties of lending solutions as per the needs of the business people. The service is streamlined, always updated and tends to be very swift. Moreover, as another support system, there are more than 16700 ATMs and 5800 banking centers across the entire United States. The Bank of America is a permanent lender of SBA. The track record of this Bank has been proven and therefore helping the small business owners. Moreover, if you log on to the official website (www.bankofamerica.com), you will get more useful information. The facility for talk to a specialist is another valuable option provided by the website. Moreover, there is a business resource centre, which offers varieties of tools to help the customers in different ways. These tools include interactive workshops, online guides, useful calculators, prevention of identity theft, and so on and so forth.
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