Wells Fargo Small Business Loans and Financing Review
Wells Fargo offers options for small business owners looking for financing. The bank offers low rates, educational resources, and a variety of sought-after banking solutions for which small businesses can apply online or at a branch.
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Wells Fargo, headquartered in San Francisco, has had a tumultuous few years, and though the bank is one of the largest in the country, recent scandals have forced the bank to close hundreds of branches. Still, despite the ongoing downsizing, the bank is expected to maintain at least 5,000 banks as of 2020, according to a CNN report.
Current struggles aside, Wells Fargo continues to be a competitive option for borrowers, including small business owners looking to secure financing. The bank currently offers a variety of small business products, including unsecured business loans, equipment loans, and business lines of credit.
Getting Small Business Financing Through Wells Fargo
Wells Fargo extends loans, lines of credit, and credit cards to various business entities, though small business products are only available to businesses with an annual revenue of under $5 million.
To apply for a loan or line of credit at Wells Fargo, applicants must be able to provide information about themselves (SSN, citizenship, etc.) and their business (date established, number of owners, gross annual revenue, and so on). If there are multiple members within the entity, each owner with 25 percent or more interest must also be listed as a guarantor and disclose their percent of ownership as well as their gross annual income.
While there are a variety of factors that determine eligibility, an applicant must be a current Wells Fargo customer with a checking or savings account that has been open for at least one year. Additionally, applicants typically must have good credit, though applicant approval depends on a variety of factors, including time in business, existing debt, and revenue. Applicants can apply online or at a Wells Fargo branch, and decision times and access to funds vary based on the products selected.
Wells Fargo’s Small Business Offerings
Wells Fargo provides business owners with a wealth of financing solutions, including SBA loans, which adhere to the requirements, rates, and limits set forth by the Small Business Administration. It also offers business credit cards, business lines of credit, business loans, letters of credit, business real estate financing, and healthcare practice financing. The full list of loan products can be found on the Wells Fargo Small Business page, but here’s a look at some of the small business financing options.
Wells Fargo Business Credit Cards
If you’re looking for a revolving line of credit that rewards you for spending, Wells Fargo offers three business credit cards. Here’s the rundown of the rates, fees, terms, and rewards.
Wells Fargo Business Platinum Credit Card
- Rate: Prime +7.99% to prime +17.99% on purchases
- Intro Rate: 0% for nine months
- Annual Fee: None
- Rewards: 1.5% cash back
- Sign-Up Bonus: $500 cash back-bonus for spending $5,000 in the first three months
Wells Fargo Business Secured Credit Card
- Rate: Prime +11.90% on purchases
- Intro Rate: None
- Annual Fee: $25 per card
- Rewards: 1.5% cash back
- Sign-Up Bonus: None
- $500 to $25,000 credit line
Wells Fargo Business Elite Card
- Rate: Prime +3.99% on purchases
- Intro rate: None
- Annual Fee: No annual fee
- Rewards: 1.5% cash back
- Sign-Up Bonus: $1,000 cash back bonus when you spend $25,000 in the first three months
- For businesses with annual sales over $1 million
Wells Fargo Small Business Advantage
The Wells Fargo Business Advantage Line of Credit is designed for a small business that has been in operation for less than two years. Lines of credit can be taken out for $5,000 to $50,000, depending on creditworthiness, and are often used for supplementing cash flow, making upgrades or expansions, or covering unexpected costs.
Interest rates are based on the current prime interest rate plus 1.75% to 6.50%, with current rates starting at 7%. New accounts are fee-free for the first year, and any line of credit under $10,000 will continue to remain fee-free. Those between $10,000 and $25,000 are subject to a $95 fee, and lines of credit over that amount are subject to a $175 fee.
Wells Fargo FastFlex Small Business Loan
This unsecured small business loan is designed for small business owners who have significant one-time expenses, are expanding or remodeling their business, or need to make costly one-time emergency repairs. Loans are approved for amounts ranging from $10,000 to $35,000, with a repayment term of one year with weekly fixed payments. The application process can take place in person or online, with instant decisions and funds as early as the next business day.
Interest rates start at 13.99% and are based on a variety of factors including the applicant’s credit history, amount requested, etc.
Wells Fargo caters to the unique needs of small business owners, and its solutions show that. The small business loan process is simple, easily accessible, and transparent, helping applicants make educated financial decisions.
With a robust resource center, including a pre-application payment estimator, competitive rates, locations across the U.S., and minimal fees, many business owners, including those in the startup stage, might find Wells Fargo to be worth considering.
With the controversy in recent years regarding some of the bank’s business practices, some would-be borrowers may see these transgressions as a thing of the past. Others might see them as a significant red flag.
In the end, if you’re looking for financing, are an existing Wells Fargo customer, and can look past their reputation struggles, Wells Fargo’s loans, lines of credit, and credit card solutions might be a good match when partnered with their low rates and robust resources.3.78 Wells Fargo Small Business Financing
Author: Jeff Gitlen