When we are talking about small business, the first thing that comes to mind is either a little restaurant or a shop, a beauty salon or a gas station, anything that is actually small and does not have huge annual revenues.
As per US Small Business Administration there are certain sizing rules to determine if your business is actually a small one.
These rules vary for different fields of activity or industries; still their numbers change our understanding of small business with standard 500 employees and over $6 million annual revenue characteristics.
Bank of America offers several options for different small business owners, for different periods of time and on variable profitable terms. Interest rates vary from deal to deal, still if you are hunting for low interest rates, a bank is the only place to find them.
Let’s check and compare the main three small business borrowing options from the Bank of America.
What Is Business Line of Credit About?
By definition, business line of credit is about your small business cash flow. So the main aim of it is to make this flow as smooth and stable as possible. The initial loan offer from the Bank of America starts with $25,000 and can reach $1 million.
If your loan is secured with property or any other collateral, this amount can be even higher.
Interest rates are paid on drawn amount only and if credit line is paid to zero, no interest rates are required. In general, the rate depends on the prime rate of the bank.
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How Beneficial Are Business Term Loans?
Such small business loans by Bank of America are initially secured. They can be given for 3 or 5 years depending on the loan collateral. Besides, you can pick up ether fixed or flexible interest rate for this loan.
The first one grants a stable monthly payment while a flexible rate offers beneficial low rates at the beginning with riskily high rates when the loan term is ending.
Advantages of Business Credit Cards
When it comes to the line of credit or term loans, they are usually provided for long-term purposes, and the initial credit amount is fixed.
However, if you are interested in more flexible conditions, Bank of America also includes convenient business credit cards. The main advantages of such cards are:
- Not fixed, flexible credit amount
- Ideal for daily usage and business expenses
- Direct access to funds when you actually need them
- Generous cash back and travel reward system for special business credit cards, for instance, 3% for office supplies purchase in the store
- Basic business credit card has low rates and no annual fees
- No extra fees for international transactions
Finally, one more thing that refers to all Bank of America small business loans benefits is excellent customer support service.
Information: Small Business Loans from Bank of America 2017