BMO Harris Small business loans are financial instruments set up to meet the financing needs of micro and small-scale businesses. If you are a business owner with financing needs, you can apply for any of BMO Harris's business loans. This financial credit line offers you an opportunity to raise cash within a short window to meet pressing financial needs. Also, the loans come with low-interest rates and flexible repayment options to ensure that your business does not suffer a liquidity crisis as you try to pay back what you owe.
The repayment schedule, interest rate, and easy application process make it one of the best small business loans on offer today.
Types of Loans offered by BMO Harris
The great thing about applying for a BMO Harris Loan is that you are not limited to just one or a few loan options. This financial provider has a large array of business loans that you can apply for. Here are the loans available for small business owners.
Credit Line for Business
The credit line for business is a quick action loan that you can apply for at short notice. You can apply for it if you have a BMO Harris business card, and you can borrow as much as $120,000. When you apply for it, a line of credit will be set up for you by BMO Harris, but you will not be charged interest for it outright. Instead, you will only be charged interest on the actual amount you withdraw from the line of credit.
Small Business Homeowner Line of Credit
This loan is also a line of credit but is useful for mortgage purposes only. As a business owner, you can apply for this line of credit to be set up for you. Once it is set up, you can use it as collateral to apply for a house. The fund is easy to access, and you only withdraw what you need and pay interest on the withdrawn sum only. There is no application fee attached to this loan.
Small Business Homeowner ReadLine
With this BMO Harris Loan, you can reduce the cost of borrowing for a mortgage. This special loan is both a credit line and a mortgage loan. You can use it to fund daily expenses and access much bigger loans with an extended repayment period.
Operating Line of Credit
An operating Line of credit is a small loan for meeting your pressing short-term financial commitments. Eligible applicants can borrow about $50,000 or more. You can borrow in US dollars, and once the fund is approved, you can access it at any time.
Agri ReadLine Line of Credit
This loan is specially created for small-scale Agri Businesses. It has a convenient borrowing scheme and is best suited for making major purchases from agricultural equipment to landholdings. The funds can also be used to cover daily expenses.
US Dollar Line of Credit from BMO Harris Bank
This is a short term loan for covering daily business expenses. Once approved, the loans can be withdrawn into your personal bank accounts even if it is not a BMO Harris Bank account. It is a short term credit facility.
Commercial Loan Insurance Plan
Under this plan, eligible borrowers can access up to $1 million in various financial benefits. This plan is a great instrument to have in place during times of financial crisis when your business is facing a cash flow issue of a credit crunch caused by poor sales or unpaid invoices. You can use it to insulate your business from financial risks.
Other loan instruments offer by BMO Harris include
Small Business Installment Loans
This loan does not attract any application fees, and you can borrow up to $250,000 worth of credit. In addition, the interest rate is quite low and predictable.
Installment Loan Plan
The installment Loan Plan is a much longer term business loan with a fixed or a flexible interest rate. Applicants are free to pick whichever one they want, and there is a wide range of repayment and amortization terms for it. In addition, the borrowing limit can be extended to $500,000.
Fixed-Rate Term Loan
If you wish to buy capital assets to boost business productivity, this is the perfect BMO Harris Loan to go for. The repayment term is a maximum of 5 years and an amortization period of up 15 years. There are no asset fluctuations associated with this small business loan, so what you pay as interest throughout the loan tenure is predictable.
Variable Rate Term Loan
If you want to take advantage of interest rates when they drop, this is the best loan for you. While it is a variable interest rate loan, you have the option of switching to a fixed interest rate when the rates become too high for you. There are also flexible repayment options under this term loan, and you are free to pick a suitable amortization period.
Canada Small Business Finance Program
The Canada Small Business finance program is a long-term loan of up to 10 years. Under this program, you can enjoy as much as $1million in aggregate financing. This program is backed by the Federal government and is designed for businesses looking to expand their capacity.
US Loans from BMO Harris
You can apply for this loan at more than 280 service locations across the United States with a borrowing limit of $100,003. It only requires very little paperwork to apply for it, and the process is expedited with a flexible repayment schedule.
What Lending Criteria does the Bank Have?
To apply for a BMO Harris small business loan, you need to have an active account with them first. During the application process, you will be asked to provide your name, address, birth date, and any other information of importance to the banker. All this info is required to confirm your identity. Your driver's license or any other document to verify your identity will be requested. Other documents that will be requested of you are
- Bank statement for the last 12 months
- Business assets
- Tax returns over 2 years
- Financial statement from your financial institution
- Debt service ratio report
- Personal/Business credit score
- Business Plan (new business)
BMO Harris interest Rates, Fees & Loan Options
BMO Harris offers a flexible interest rate in aggregate terms. The rates charged on loans are for funds withdrawn, not funds approved. The interest rate is 3.05% for loans of up to $1 million. For loans over $1 million, terms are renegotiated between the parties involved. There is also a special 0.25% interest rate reduction for borrowers with a BMO Harris Checking account.
NB: Please do note the interest rate is never static and subject to change. For an updated rate, kindly visit the BMO Harris website.
BMO Harris Application
Applying for a BMO Harris Loan is mostly online. You will be asked for the following
Identification: To verify your identity, you will be asked to provide a government-issued ID card with your name, date of birth, and image boldly displayed. Your phone number will also be requested.
Pay Stubs: For most loan instruments, you will be asked to provide a pay stub to enable BMO Harris to gauge your income flow. Note that this requirement is only for some small business loan
Tax Returns: You will be asked to provide your tax returns at some point during the application process for the last 2 years. This document is used to evaluate the liquidity and income potential of your business.
To apply for any BMO Harris business loan, kindly visit www.bmo.com and fill in the application form for the appropriate loan you wish to apply for. Depending on the loan, the verification process can take between 3 days or more. Accepting your request is at the exclusive preserve of BMO Harris Bank, and the state of your application will be communicated to you via phone or email.
Summary of BMO Harris Loan Options
The small business loans offered by BMO Harris Bank are very easy to apply for. Due to the wide range of loan options on offer, you have the freedom of choice to pick a loan that you qualify for and are able to service. Another great feature of BMO small business loans is that you are free to pick a loan with a flexible or a free interest rate. Even better is the fact that some of the loans give you the freedom to switch between a flexible and a rigid interest rate as you wish. Therefore, we only recommend that you study the interest rate and your repayment capacity before you apply for it.
If you are interested in learning more about business loans and credit lines offered by other bankers and lenders, please click here.