Unsecured line of credit
If your business doesn’t yet have a lot of assets or you don’t want to risk losing them with a secured line of credit, an unsecured line of credit might be right for you. You’ll pay an annual fee to maintain the line of credit each year, and you won’t pay interest until you draw down your line of credit. Another handy feature of this product is that there are no additional fees for cash advances, so if your business needs cash frequently, this could be a good option.
Unsecured term loan
Bank of America term loans are about as standard as they come. You can choose from a wide range of financing amounts and terms. Its rates are also very competitive compared to other online lenders and other small business finance companies.
Secured line of credit
If you want to get the cheapest rates possible on a line of credit and are absolutely confident in your ability to repay, you can pledge a business asset as collateral and get a secured line of credit. Bank of America accepts CDs or a “general lien on your assets” as collateral.
Guaranteed term loan
You can also use collateral for a secured term loan if you wish – a general lien on business assets or a CD. Depending on the type of warranty you choose, you can opt for up to four years for general business assets or five years if using a CD.
Commercial real estate loans
If you need to buy a new property or upgrade your existing business footprint, Bank of America offers several different home loan options. You can use a commercial real estate loan to buy a new property, refinance an existing real estate loan, or use your capital for business purposes.
The term of these loans varies; you can choose between a 10-year term with a lump sum payment at the end or a 15-year loan with fixed payments. Be sure to think carefully about which one your business can afford.
Although you can use a line of credit or a term loan to purchase commercial equipment if you wish, a better option would be an equipment loan as the rates are much cheaper. This is considered a secured loan, but the equipment you are financing serves as collateral, similar to a car loan. Bank of America also offers equipment leasing options if you need to upgrade equipment by the end of a term loan.
Loans for healthcare practice
Bank of America has spent a lot of time developing its financing options for healthcare practices (doctors, dentists, and veterinarians). One of the cool things is that when you take out a healthcare practice loan, Bank of America gives you a free assessment of your business and offers strategies for improvement. It also offers a unique home loan program for doctors that can make buying a home easier.
Unlike most SBA loans, Bank of America says its SBA loans have easier qualifications than a standard business loan as long as your business isn’t “generally eligible for conventional credit.” However, it does not explain exactly what this means in practical terms. Still, if you’re interested in an SBA loan, it’s worth contacting Bank of America to find out more. It is also a preferred lender with the SBA.