John was a business enthusiast. He was thinking of opening his commercial truck venture, but unfortunately, his bank balance did not support him taking on more debt or having cash to access. So instead, he ended up working as a taxi driver.
John killed his passion because he did not know about various finance sources available at the Bank of America. But don't let that happen to you.
With Bank of America, equipment financing is not an issue anymore. There are various financing options available at this bank, which you can utilize for your commercial truck business.
Business Advantage Auto Loan
The Business Advantage Auto Loan allows you to refinance or purchase vehicles of various kinds; including light trucks you can purchase to start your venture. This loan will also give you a rate lock guarantee of 30 days for finding the truck of your choice.
To be eligible for this loan, vehicles' minimum value, including light trucks, must not be lower than $10,000. The maximum vehicle age in used trucks and vehicles must not exceed five years with mileage less than 75,000 miles.
You can apply for this loan online. It does not have complicated procedures, nor does it charge any application fees.
30-day Rate lock
The 30-day rate lock policy gives you extra time to search for your desired truck with all the features and affordable price.
Get the Vehicle
When the loan gets approved, go and receive your check. The check will be made payable to your truck dealer or seller.
Bank of America Equipment Financing
The Bank of America also offers an equipment financing option. Equipment financing can be utilized to finance packing types of machinery, office equipment, printing presses, heavy-industrial equipment, stationary, construction equipment, commercial trucks, trailers, etc.
It has an origination fee equal to 0.5% of the total amount financed.
You can acquire this loan to finance equipment and trucks of around $25,000 with no maximum limit on larger trucks, trailers, and vehicles.
Loan for Small Business Administration
If you are planning to open a small commercial truck business and if it comes under the definition of small business administration (SBA), then collateral and documentation requirements would be subject to the SBA guidelines.
Age and Citizenship Requirement
To acquire an equipment financing loan for your commercial truck business, your age must be 18 or above, or your state of residence must permit you to contract for automotive financing legally. It would help if you were either a US citizen or a permanent or non-permanent resident.
Secured Line of Credit
Through Bank of America's secured credit line, you can support your commercial truck business's ongoing expenses. This credit line is usually secured through a certificate of deposit or a blanket lien that would be on your assets.
Annual Renewal of Credit
This credit option will give you a chance to renew the contract annually if your commercial truck venture needs more credit, especially during the initial years. Moreover, renewal does not require any cash advance charges no interest until the funds are used.
How to Qualify for This Loan?
To be eligible for a secured line of credit, your commercial truck business must be running for a minimum of two years under your ownership and have annual revenue of at least $250,000.
You can apply for this loan by visiting your nearest bank branch to complete the application form in-person. Additionally, you can also complete the application form over the phone.
Line Amount and Terms
After completing the application form, the bank management will review your application and determine your line's amount and terms.
When the fund for your commercial truck business gets approved, a specialist in business lending will contact you and help you promptly to get the funds.
Unsecured Line of Credit
Unlike a secured line of credit, unsecured does not require any collateral. Through this credit line, you can bridge the gap between your commercial truck business's receivables and payables.
Moreover, its policies on the renewal of the loan, the loan terms, cash advance, and interest charges is the same as the secured line of credit, which means that it also has an annual renewal policy (upon your discretion) with no advance fees in cash and no interest charges unless you start using the funds.
Your commercial truck business should be operating for at least two years under your ownership to qualify for this loan. And should earn a minimum annual revenue of $100,000.
Secured Business Loan
The Bank of America also allows you to expand your existing business of all kinds, including commercial trucks or refinance your debts. This business loan provides you the opportunity of determining the loan collateral yourself.
Lower Interest Rates and Repayment Terms
Through secured business loans, you can get loans at a comparatively lower rate with convenient repayment terms.
The eligibility criteria for this loan are the same as the secured line of credit. Your commercial truck business must be running for a minimum of 2 years with annual revenue of $250,000.
You have the option to either visit any branch in-person or complete the application over the phone.
The decision on Loan Amount, Terms, and Funds
The concerned employees at Bank of America will determine the amount of your loan, including the terms. Afterward, when your funds get approved, the lending specialist will contact you and help you finance.
Business Advantage Term Loan (Unsecured Business Loan)
Through a business advantage term loan, you can finance your commercial truck business with a lump-sum amount of working capital to improve your cash flows. Moreover, an unsecured business loan, as the name suggests, does not require collateral.
This loan allows you to finance your commercial truck business at lower rates and appropriate repayment terms.
To qualify for this loan, you should meet the requirements stated for an unsecured line of credit. These requirements are:
- Your commercial truck business must be operating for at least two years.
- It should have minimum annual revenue of $100,000.
Based on these options, you can easily choose a package that suits your requirement and the budget you are following. So good luck with purchasing!