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Business Advantage

Frequently Asked Questions: Business Loans

  • Hide What types of business financing does Bank of America provide?

    Our business financing recommendation page is a good place to see all the types of financing options we offer. You can use the business financing recommendation tool to sort through the options to find the one that’s most appropriate for your specific business situation.

  • Show Should I choose a fixed or variable interest rate?

    It all depends on your specific business situation and your tolerance for risk. A fixed interest rate provides the security of knowing what your interest rate and payment will be throughout the life of your loan. A variable interest rate loan may give you a lower rate and payment amount initially, but there’s a chance that the rate and payment amount may rise or fall in the future.

  • Show How can I reduce the amount of my monthly term loan payments?

    Extending the number of months you take to pay off a term loan will lower your monthly payment. However, it will take you longer to pay off the debt and the total cost of borrowing the money will be higher. The type of collateral you pledge to secure your loan may have an impact on your interest rate, too.

  • Show What will my closing costs be?

    Closing costs vary depending on the type and size of the credit request. Before your closing, you will receive a detailed accounting of all closing costs.

  • Show Once I am approved for financing, how do I access my funds?

    If your financing request is approved, a Bank of America representative will let you know about the various ways you can access your funds after the loan documents are signed. These methods vary depending on the type of financing you're getting.

  • Show Does Bank of America offer funding for new business startups?

    No. All Bank of America business financing requires that your business be under current ownership for at least 2 years. However, there are several ways to obtain the funding you need. The Small Business Administration (SBA) is a good place to start learning about startup financing that may be available to you. You should also understand that there's a lot of work you need to do before you apply for any financing, including developing a business plan. This article will explain some of the pre-financing due diligence you should be doing.

  • Show Do you provide agricultural financing?

    Yes. Please visit our agricultural financing page for additional details.

  • Show What does loan-to-value ratio mean?

    The loan-to-value-ratio (LTV) is the ratio between the unpaid principal amount of a loan, or credit limit in the case of a line of credit, and the appraised value of the collateral. Expressed as a percentage. For example, if you have an $80,000 first mortgage on a commercial property with an appraised value of $100,000, the LTV is 80% ($80,000 / $100,000 = 80%).

  • Show What are soft costs?

    Soft costs are costs associated with the purchase of an item that are not part of the item price. For example, taxes, freight charges and delivery fees are soft costs.

  • Show Can I apply online for a business loan?

    Sorry, we don't offer online applications at the present time. However, we have small business credit specialists standing by to assist you with whatever questions you may have. Call us at 1.866.543.2808 (Mon.–Fri. 7 a.m.–7 p.m. or Sat. 7 a.m.–4 p.m.; all times Eastern).