You’ve got big plans for your small business. With plenty of money, time, tears, and energy put into establishing it, it’s time to take that next step. With a wide range of financing options on the market today, Wells Fargo business loans stay competitive. Despite a still-recovering public image, Wells Fargo has a variety of options to help your business grow.
Like with any institution, it’s key to understand the details of each loan or finance product they offer in order to know which one works for you and your business. Here’s a breakdown of Wells Fargo business loans, so you can know before you go.
Before You Apply
A Nav survey found that business owners spent an average of 11 hours applying for a single loan. Your time is precious, so it’s best to know as much as you can before diving into the loan process. Wells Fargo generally looks for applicants with a personal credit score of at least 640. While required time in business varies from product to product, you’ll want to come in with a Debt-Service Coverage Ratio (DSCR) of 1.5 or higher, meaning you make $1.50 for every $1 of outstanding business debt you currently have. As well, Wells Fargo Business Loans require a $150 opening fee (which can be waived as a benefit of a Wells Fargo Business Choice Checking or Platinum Business Checking Account, according to information on the Wells Fargo website).
With higher-than-normal cash flow requirements and pretty strict credit history requirements, you’ll want to make sure your credit profile is in tip-top shape before applying with Wells Fargo (you can check your personal and business credit scores for free with Nav).
Wells Fargo Unsecured Business Loan
An unsecured loan has its advantages and disadvantages. While the Wells Fargo Unsecured Business Loan doesn’t require specific collateral, the rates are slightly higher than those typical of a secured loan.
Unsecured loans also carry relatively shorter terms than secured loans or other means of financing. Because of this, they are generally used for singular expenses such as an expansion opportunity or emergency facility repairs or remodels.
| Term | 1-5 Years |
| Amount | $10,000 – $100,000 |
| Rate | Starting at 7.75% |
| Best For | Large one-time purchases, expansion, facility remodels or repairs. |
Equipment Express Loan
If your business expansion plans involve new gear or a new vehicle, Wells Fargo has you covered as well. You’ll have the ability to shop with financing in place and purchase multiple items with one loan all while securing financing with competitive interest rates.
| Term | 2-6 Years |
| Amount | $10,000 – $100,000 |
| Rate | Starting at 6.75% (vehicles), 7.25% for equipment |
| Best For | Buying vehicles for your business, including trucks and trailers, upgrading equipment |
Wells Fargo Advancing Term Loan
A unique option for small businesses, an advancing term loan is a working capital loan that allows you to borrow over a draw period before converting the balance into a term loan. If approved, you’d have a draw limit to work with for up to a year, after which it would convert into a loan.
Unlike the unsecured loan above, this loan would require non-real estate collateral, as well as a .50% origination fee due at opening.
| Term | Up to 1-year draw, loan term varies |
| Amount | $100,000-$500,000 |
| Rate | Varies |
| Best For | Business improvements, business expansion, large purchases. |
This article was originally written on June 28, 2018 and updated on October 17, 2019.
I have a business and personal account with Wells Fargo Bank for over 26 years. I want to borrow $10,000 to buy a car for my business, using the Car title for securing the loan. My business has no credit, My partner in my business will co-signer of the loan who is also on my business account and personal account. I have not bought something on credit for 5 years, my partner has a 814 credit score. Please advice how we can buy a car and have both are name on the loan to re establish my credit personal and business.