If you’re considering a small business loan or line of credit to help your business take that next step, Bank of America could be a great option. With millions of small business customers and a great variety of products and rates, they may just have what you’re looking for. Like with any bank, it’s good to know how to be prepared before applying for a loan or opening an account. Here’s an overview of some of Bank of America’s offerings and what you need to know before you apply.
What You’ll Need
Because you’re applying for credit for your business rather than a personal loan or line of credit, the information you’ll need to apply will be different. You’ll still need your name, but the rest of the information, unless you’re an owner, guarantor, or controlling manager, will be about the business. You will need:
- Business street address and the date the business moved to that address
- Phone number
- Tax ID#
- Type of business
- The date your business was established
- Acquisition date of current ownership
- Number of employees
- Annual net profit
- Annual gross sales
- List of outstanding debts, including lender, balance, and monthly payment
As well, you’ll need to provide the following information about each business owner, guarantor, and controlling manager:
- Name and title of individual opening the account
- Name and address of the entity for the account
- Name, birthdate, Social Security number (or passport number and country of issuance for non-American citizens), and residential address for each beneficial owner and controlling individual (will also need percentage of ownership for each beneficial owner).
- Personal income information
- Residence status (rent or own) and monthly housing payment
There are four basic types of small business financing through Bank of America. Here are some key details of each of them to know before you begin an application:
|Finance Type||Finance Amount Limits||Interest Rates||Additional Fees|
|Unsecured Business Line of Credit||$10,000 – $100,000||6.25%||$150 Origination Fee|
|Unsecured Business Loan||$10,000-$100,000||5.50% and up||$150 Origination Fee|
|Secured Business Line of Credit||$25,000 and up||5.25% and up||Variable based on line amount|
|Secured Business Loan||$25,000 and up||4.50% and up||0.5% of finance amount|
While the specific credit requirements for financing are proprietary, Bank of America requires that your business has been under existing ownership for at least two years and brings in at least $100,000 in annual revenue. You’ll also need what they describe as “satisfactory personal credit, typically defined as a FICO score of 670 or higher. You can check your personal and business credit score for free with Nav.
You are NOT required to have a Bank of America account before applying for financing for your business, and will have the option to apply either online, in person, or on the phone.