PBN.com:
It’s not quite a return to small-town banking, where personal relationships determined loan approvals, but Bank of America is taking a more intimate look at its small business clients with a new program that promises access to an unsecured, up-to-$100,000 line of credit. The product came after a 1-year study in which the bank’s small business customers expressed frustration in three areas: access to capital, time management and payroll administration, said Mario Ruggiero, senior vice president and Northeast business development leader for Bank of America.
The unsecured credit line, called Business Credit Express, was developed in response to clients’ feedback, Ruggiero said. Most banks don’t lend to small businesses until they have been in operation for at least 60 days. With Business Credit Express, bank clients can gain access to capital after being in business as little as one day.
The idea is to ‘give more access to capital quicker,’ he said.
Customers can apply for the line of credit without filling out lengthy applications. Rather, a meeting with one of Bank of America’s small business bankers will take care of the application process. Approval is instant in some cases.
When asked if it’s risky to offer small businesses an unsecured line of credit after a single day of operation, Ruggiero said ‘we took a different approach to it.’ Instead of looking at the past history of the business – since there is none – or at cash or collateral, the bank looks at the business owners’ personal credit scores, ‘how they handle bills personally.’
Subscribe 
