Wells Fargo Business Loans Review: July 2023 (2024)

Pros Explained

  • Earn rewards on your line of credit: Wells Fargo’s unsecured business lines of credit offer a rewards program similar to what you’d find on a rewards credit card. You’ll get a Mastercard access card to make purchases from your line of credit and earn 1 point for every $1 spent, which you can use toward travel, gift cards, and other items. You’ll also get 1,000 bonus points for every month you make $1,000 or more in qualifying purchases, plus a 10% points credit when you redeem online (10% of redemption value).
  • Line of credit options for all levels of business: For newer business owners, those that have been in business for two or more years, or larger organizations with $2 million or more in sales, Wells Fargo has a line of credit product to match.
  • Good choice if you prefer in-person assistance: As a traditional bank with many locations throughout the U.S., Wells Fargo can offer a more human approach to business lending than you might find with an online lender that is focused on a more digital experience.

Cons Explained

  • Wells Fargo business term loans are no longer available: The bank used to offer four different business loans (Equipment Express loan, Wells Fargo BusinessLoan term loan, FastFlex small business loan, and Advancing term loan), but they have been discontinued. You can apply for an SBA term loan with Wells Fargo, however.
  • Ability to apply online is limited: You must be a Wells Fargo banking customer for at least one year in order to apply online. In addition, if you’re aiming for a credit line of over $100,000, you’ll need to call for an appointment at a branch.
  • Credit requirements are relatively strict: A 680 credit score, which is what Wells Fargo says their borrowers should have, is in the “good” credit range. This leaves out business owners who may have issues with their personal credit. In addition, anyone who is a guarantor on the loan will be held to the same standards.

Types of Business Loans Offered by Wells Fargo

Wells Fargo offers three different business lines of credit products as well as SBA loans.

Unsecured Lines of Credit

Wells Fargo BusinessLine

This line of credit is for businesses that have been operating for at least two years. You can get a $10,000 to $150,000 revolving credit line with rates starting at Prime + 1.75%. There is an annual fee but it’s waived the first year.

Wells Fargo Small Business Advantage

If you’ve been in business less than two years, this is the product for you, with credit lines from $5,000 to $50,000. There’s no annual fee, but you’ll pay a higher rate (starting at Prime + 4.50%).

Secured Line of Credit

Prime Line of Credit

Businesses with more than $2 million in annual sales with larger borrowing needs can apply for this secured line of credit from $100,000 to $1,000,000. It’s backed by your assets such as accounts receivable, inventory, or equipment, and you’ll pay a 0.50% origination fee at account opening and each year.

If you take a Prime Line of Credit, there will be a first-priority lien placed on all present and future accounts receivable, inventory, equipment, general intangibles, and certain other non-cash personal property. That means Wells Fargo is the first debtor to be paid back with collateral, if necessary.

SBA Loans

Wells Fargo offers SBA 7(a) and SBA 504 loans. These small business loans are for businesses with net worth below $15 million and an average net income below $5 million.

Time to Receive Funds

Wells Fargo business lines of credit do take a bit of time to process. For an unsecured line, you’ll have to wait for written notification from Wells Fargo to find out if you’re approved and for how much. For the Wells Fargo Prime Line of Credit, expect the underwriting to take up to two weeks after you submit all of the documents required.

Borrower Requirements

  • Minimum recommended credit score: 680
  • Time in business: The Wells Fargo BusinessLine line of credit requires a minimum of two years in business. Newer businesses can apply for the Wells Fargo Small Business Advantage line. For the latter, you’ll also need to meet SBA requirements, which includes having household personal liquid assets below $500,000.
  • Personal guarantees are required from any owner with 25% or more ownership; the Small Business Advantage line requires the same from owners with 20% or more ownership.
  • Prime Line of Credit requires businesses to have $2 to $10 million in annual sales.

Wells Fargo Business Loan Features

Secured line of credit available: Wells Fargo Prime Line of Credit utilizes collateral including accounts receivable, inventory, or equipment.

Existing customers can apply online: If you have already been a Wells Fargo bank account holder for a year or more, you can complete your business line of credit application online.

Customer Service

Customer service is available by phone seven days a week. There is no online chat available, but the customer service page has all of the pertinent contact information.

Customer Satisfaction

Wells Fargo has had some reputational challenges including financial scandals, lawsuit payouts, and poor ratings from the Better Business Bureau. It also ranks last in J.D. Power’s 2022 Small Business Banking Satisfaction study.

Wells Fargo has a current government action pending involving its home lending division. That’s after having paid $3.7 billion in penalties in 2022 stemming from a Consumer Financial Protection Bureau (CFPB) action, which alleged mismanagement of auto loans, mortgages, and deposit accounts.

Applying for a Wells Fargo Business Loan

Most applications for a Wells Fargo business line of credit will involve getting on the phone or stopping in to a branch to speak with a loan specialist. However, if you are a banking customer, you can begin the process online.

You’ll need to provide general business information including the date the business opened, your business tax ID, the number of owners, and gross annual revenue. Each owner will have to provide a personal guarantee along with their personal contact information and annual household income.

If you’re applying for a Wells Fargo Prime Line of Credit, you will need to show two years of personal and business tax returns, a personal financial statement, and two years of a company-prepared, year-end financial statement.

Once all of your information is submitted, processing can take a couple of weeks.

Alternative Business Loan Lenders

LOC AmountUp to $250,000Up to $250,000Up to $250,000
Loan Terms3-18 monthsUp to 24 months6-12 months
Recommended Minimum Credit Score650625625

Final Verdict

Wells Fargo offers business lending products to established businesses that prefer an in-person banking relationship. If you’re looking for a line of credit in particular, there are three options available that cater to most business needs. For term loans, however, Wells Fargo only offers SBA loans. If you meet the lending requirements, you could qualify for favorable rates and terms. Should problems arise, stay on top of them and document everything since Wells Fargo’s customer service reputation is reported to be shaky at best.

What Types of Business Loans Does Wells Fargo Offer?

Wells Fargo offers SBA business loans and business lines of credit.

Is Wells Fargo a Preferred SBA Lender?

Yes, Wells Fargo is a Preferred SBA Lender, offering SBA 7(a) and SBA 504 loans. As a preferred lender, Wells Fargo can approve and process a loan application more rapidly than a non-preferred lender.

Does Wells Fargo Give Business Loans With Bad Credit?

Wells Fargo typically offers business lines of credit to borrowers with 680 or above credit scores, which makes it an unlikely choice for a business loan with bad credit. SBA loans also tend to have good credit score requirements, though specifics are not disclosed.

How Do You Qualify for a Business Loan at Wells Fargo?

Each Wells Fargo business lending product has its own requirements, but to qualify, borrowers usually have to have a 680 credit score or above. You’ll also have to have two years in business if you’re applying for the Wells Fargo BusinessLine line of credit, or have more than $2 million in annual sales for the Prime line of credit.

Wells Fargo Business Loans Review: July 2023 (2024)


Wells Fargo Business Loans Review: July 2023? ›

Wells Fargo Unsecured Business Lines of Credit. Things to consider when preparing to apply for an unsecured business line of credit: Typically, guarantors have a FICO® Score of at least 680 at time of application.

What credit score do you need for business loan from Wells Fargo? ›

Wells Fargo Unsecured Business Lines of Credit. Things to consider when preparing to apply for an unsecured business line of credit: Typically, guarantors have a FICO® Score of at least 680 at time of application.

How long does it take for Wells Fargo to approve a business loan? ›

If you applied for a Wells Fargo Prime Line of Credit, it will take up to two weeks for processing after you have submitted the required documentation. Your underwriter will provide you with guidance on additional requirements for your business.

Is Wells Fargo a preferred SBA lender? ›

Wells Fargo is a Preferred SBA lender and its interest rates on small business loans are generally nationally competitive. Not all details about financing terms for small business loans are available on the bank's website, however, so you should be prepared to call a banker or visit a branch directly.

What credit score do you need for a Wells Fargo FHA loan? ›

Wells Fargo's underwriting process typically requires a credit score of 620 or higher to get a mortgage.

Does Wells Fargo do a hard pull for business credit card? ›

Yes, the Wells Fargo business credit cards will do a hard pull. You will need a credit score of at least 700 to get a Wells Fargo business credit card, with the exception of the Wells Fargo Business Secured, which is available to applicants with bad credit.

What FICO score is used for business loans? ›

Instead of a personal credit score, the SBA uses the FICO Small Business Scoring Service (SBSS) when evaluating 7(a) loan applicants. The system calculates the business owner's credit bureau data, financials and other factors to produce a number between 0 and 300.

How likely are you to get approved for a business loan? ›

And depending on where you apply for a loan, whether a traditional bank or an alternative lender, there could be many more factors. Tradition banks approve only 27.7% of small businesses for a loan. The main reasons are they consider small businesses high risk and their ROI may not be as strong.

Is it easy to get approved for Wells Fargo? ›

The Wells Fargo credit card approval odds are best for people who have at least good credit (a credit score of 700+). Just keep in mind that the higher an applicant's credit score is, the higher their approval odds are likely to be.

What do banks look at when approving business loans? ›

Lenders will want to review both the credit history of your business (if the business is not a startup) and, because a personal guarantee is often required for a small business loan, your personal credit history. We recommend obtaining a credit report on yourself and your business before you apply for credit.

What is the easiest SBA loan to get approved for? ›

SBA Express

This term loan or line of credit offers fixed or variable SBA loan rates as well as the easiest SBA application process, quick approval times, flexible terms, and lower down payment requirements than conventional loans.

What bank is better than Wells Fargo? ›

The bottom line: Chase is a better choice for CDs, but Wells Fargo has easily manageable checking options. When it comes to savings accounts, it could be a tight race between the two banks. Chase is on Insider's list of the best national banks. Wells Fargo and Chase are two of the biggest national banks in the US.

Are SBA loans easier to get? ›

Because they're backed by the U.S. government, they're less risky for banks than issuing their own loans. But SBA loans are usually harder to get than online business loans, which may require less time in business and lend to borrowers with lower credit scores.

What FICO score does Wells Fargo use? ›

FICO® Score 9 from Experian®

Simple access via Wells Fargo Online, to help you know where you stand.

Can I buy a house with a 592 credit score? ›

Can I get a mortgage with an 592 credit score? Yes, your 592 credit score can qualify you for a mortgage. And you have a couple of main options. With a credit score of 580 or higher, you can qualify for an FHA loan to buy a home with a down payment of just 3.5%.

Can I buy a house with a 596 credit score? ›

Generally speaking, you'll need a credit score of at least 620 in order to secure a loan to buy a house. That's the minimum credit score requirement most lenders have for a conventional loan. With that said, it's still possible to get a loan with a lower credit score, including a score in the 500s.

Does Wells Fargo have high credit limits? ›

Wells Fargo credit card limits aren't particularly high; the minimum credit limit offered is $1,000, though some cardholders have reported receiving starting spending limits as high as $14,000.

Does Wells Fargo report to Dun and Bradstreet? ›

The only secured business credit card that reports to D&B is the Wells Fargo Business Secured Mastercard.

How long does it take to get a line of credit for a business? ›

It can take anywhere from a day or two to several months to be approved for a line of credit. As a general rule, online lenders are faster than banks, and banks are faster than the SBA. For credit cards, you're looking at seven to 10 days in most cases.

Do business loans look at personal credit? ›

Are you applying for a business loan? Commercial lenders may look at both your business and personal credit scores before they approve your application. If you have poor personal credit and you're wondering if it will affect your approval or the terms of your commercial loan, the answer is yes, it can.

How much of a business loan can I get with a 700 credit score? ›

You can borrow $50,000 - $100,000+ with a 700 credit score. The exact amount of money you will get depends on other factors besides your credit score, such as your income, your employment status, the type of loan you get, and even the lender.

How much of a business loan can I get with a 650 credit score? ›

The minimum credit score required for the SBA 7(a) business loan is 650. The 7(a) loan is the most in demand SBA loan program to date. It guarantees small business owners up to $750,000 of working capital from their local 7(a) lender, with a partial guarantee from the Small Business Administration.

How hard is it to get a 250k business loan? ›

Almost all business lenders offer loans in this amount, so you won't be locked out of loan rates based on the loan's size. But you might struggle to qualify for a loan of this size from any lender if your business has been around for less than a year or you have a credit score below 670.

Why is it so hard to get a small business loan? ›

Because of stricter regulations, it's hard for banks to innovate and start using information other than credit scores to determine risk. If you have bad credit, it's much harder to get a business loan from a bank because they don't use all the data that alternative lenders do.

What percentage of business loans are denied? ›

But what happens when your application for a loan is denied? Research that shows the percentage of small business loans that get denied is quite high. Only around 57% of general small business loan applications made to traditional banks are approved, with SBA loans having a 52% approval rate.

Why would Wells Fargo deny me? ›

Reasons why your Wells Fargo card application was denied:

Insufficient income. Too many recent applications. Too many open Wells Fargo accounts. Poor payment history.

Why did I get denied for Wells Fargo? ›

Your credit score is too low. Work on managing your credit. If you have missed payments, get up-to-date and stay current. You have too much debt relative to your income.

What is the Wells Fargo 15 month rule? ›

Wells Fargo application rules

Wells Fargo has one major rule that applies to all its credit cards -- one welcome offer from any of its cards per 15 months. Welcome offers refer to any special offers that apply during an introductory timeframe, and can include: Sign-up bonuses.

How to convince a bank to give you a business loan? ›

5 Tips for Creating a Convincing Forecast for the Bank
  1. First, Build a Real Relationship. It is very difficult for any small business owner to walk up to someone to ask for assistance. ...
  2. Know the Numbers. ...
  3. Explain How You Made Your Forecasts. ...
  4. Show How They Get Their Money Back. ...
  5. Personally Guarantee the Loan.
Jan 28, 2016

What questions do banks ask for business loan? ›

Here are six questions a lender will typically ask you.
  • How much money do you need? ...
  • What does your credit profile look like? ...
  • How will you use the money? ...
  • How will you repay the loan? ...
  • Does your business have the ability to make the payments required under the loan? ...
  • Can you put up any collateral?

Do business loan companies verify bank statements? ›

Bank statement lenders will want to verify your bank statements with proof of deposit. Also, they'll likely want details about your account such as account number, balance, and the names on the account.

Can I get a business loan with a 500 credit score? ›

Yes, it is possible to get a small business loan even if you have bad credit. This is because your credit score doesn't matter as much as the overall financial health of your business. Many lenders require a minimum credit score of 500, at least six months in business, and more than $30,000 in annual revenue.

What is the minimum credit score for SBA? ›

The minimum credit score required for an SBA loan depends on the type of loan. For SBA Microloans, the minimum credit score is typically between 620-640. For SBA 7(a) loans, the minimum credit score is typically 640, but borrowers may find greater success if they can boost their credit score into the 680+ range.

Do people get denied for SBA loans? ›

There are all sorts of reasons why your loan application may not get through, but some of the more common ones are: You have a low overall personal or business credit score, or a poor credit history.

What is the downside of Wells Fargo? ›

The main drawback we see with Wells Fargo are the low APYs on most accounts — if you're looking to earn money through interest, this is not the bank for you. Wells Fargo should also be avoided by people who struggle with overdraft fees. The standard overdraft fee is $35 at a max of three a day.

Is Capital One under Wells Fargo? ›

Is Capital One owned by Wells Fargo? Wells Fargo does not own Capital One, but the two financial institutions have some corporate connections. In 1994, Signet Financial Corp. started the company now known as Capital One, and Signet is now part of Wells Fargo.

Who is Wells Fargo biggest competitor? ›

The main competitors of Wells Fargo are three of the other big four major U.S. banks—JPMorgan Chase, Bank of America, and Citigroup. Combined, these four banks together hold between 40% to 45% of all bank deposits in the country and serve the majority of personal and commercial accounts in the United States.

What disqualifies you from getting an SBA loan? ›

Ineligible businesses include those engaged in illegal activities, loan packaging, speculation, multi-sales distribution, gambling, investment or lending, or where the owner is on parole.

What disqualifies you from getting a business loan? ›

Ineligible businesses

Some lenders will not lend to companies that operate in certain industries. Some industries are high-risk, so some banks won't lend to companies in real estate, sales, or investing. Other common disqualifying industries include gambling, adult entertainment, dispensaries and cryptocurrency.

How hard is it to get a SBA loan for a new business? ›

Owning a brand-new business is one of the top reasons it's difficult to get an SBA loan. Traditional lenders view funding startup businesses as “risky.” They usually require the business to be at least two years old before they'll consider an approval.

Does Wells Fargo do a hard pull? ›

Wells Fargo may carry out a soft or hard credit pull when you submit a credit limit increase request. If there's a hard inquiry, you can expect your credit score to temporarily drop by a few points.

Does Wells Fargo give loans with bad credit? ›

The company doesn't publish a minimum credit score needed for a personal loan, but if you're interested in an unsecured personal loan, you should at least have a credit score between 660 and 749. Wells Fargo bad credit loans aren't unheard of, but if your credit is poor, your interest rate will be much higher.

What is the minimum credit score for Wells Fargo reflect? ›

The Wells Fargo Reflect® Card credit score requirement is 700 or better. That means people with good credit or better have a shot at getting approved for the Wells Fargo Reflect Card.

What credit score do you need for a $400000 house? ›

What credit score is needed to buy a house? For most loan types, the credit score needed to buy a house is at least 620.

What credit score is needed for a 300k house? ›

Some mortgage lenders are happy with a credit score of 580, but many prefer 620-660 or higher. If your credit score is lower, it is advisable to explore different lenders..

How accurate is credit karma? ›

Here's the short answer: The credit scores and reports you see on Credit Karma come directly from TransUnion and Equifax, two of the three major consumer credit bureaus. The credit scores and reports you see on Credit Karma should accurately reflect your credit information as reported by those bureaus.

What credit score do you need for a $250000 mortgage? ›

A $250,000 mortgage is relatively easy to find and will be offered by virtually every lender offering home loans. However, you must meet the lender's requirements to be approved for a loan. Most conventional lenders will want a credit score in the mid to high 600s but may go as low as 620.

What credit score do you need for American Express? ›

While some issuers offer cards designed for those with less-than-stellar credit scores, American Express does not offer any subprime or secured cards. In most cases, you need at least good credit to get approved for an American Express card, which FICO typically defines as a score of 670 or higher.

What is the lowest credit score you can have and still buy a house? ›

It's recommended you have a credit score of 620 or higher when you apply for a conventional loan. If your score is below 620, lenders either won't be able to approve your loan or may be required to offer you a higher interest rate, which can result in higher monthly payments.

Can I get a business loan with a 600 credit score? ›

The minimum credit score required for express loan is 600.

With this type of loan, borrowers will be notified within 36 hours of applying as to whether or not they've been approved. If you are approved, you'll be able to receive the funds within 90 days.

Can I get a business loan with a 580 credit score? ›

It's possible to get a small business loan with bad credit, but applicants with low credit scores may have a harder time getting approved for traditional loans. What's more, small business owners with bad credit—scores as low as 580—typically can only access high interest rates.

How good does my credit need to be to get a business loan? ›

640 to 700: Business loan providers generally consider a credit score that falls somewhere between 640 and 700 to be good but not excellent. Generally, the minimum credit score for SBA and term loans is around 680.

What is an acceptable business credit score? ›

Businesses are ranked on a scale between 101 to 992, with a lower score correlating to a higher risk of delinquency. A good Business Credit Risk Score is around 700 or higher.

Is it hard to get a 50k business loan? ›

It's often not difficult to get a $50,000 or $100,000 business loan if you have good credit and a solid business plan. There are hundreds of lenders throughout the U.S. that can provide unsecured small business loans.

Can I get a business loan without revenue? ›

It is possible to get startup business loans with no revenue, profits, cash flow or assets. But just because you can get a business loan with no money doesn't mean it's the best option.

Can I get a 5000 loan with a 580 credit score? ›

Requirements for a $5,000 loan vary by lender. But in general, you should have at least Fair credit, which is a score of 580 or above. Lenders may also look at other factors, such as your income and your debt-to-income ratio (DTI), during the application process.

Can I get a business loan with EIN number? ›

Are There Loans That Accept An EIN Instead Of An SSN? Yes, individuals who are not eligible for an SSN can still get business loans using their EIN through some financial institutions. The process is usually just as easy as applying for a loan with your SSN.

Can my business get a loan if I have bad credit? ›

Yes, it is possible to get a small business loan even if you have bad credit. This is because your credit score doesn't matter as much as the overall financial health of your business. Many lenders require a minimum credit score of 500, at least six months in business, and more than $30,000 in annual revenue.

What is a bad credit score for a business? ›

According to Equifax, a business credit score varies on a scale between 0 – 1200, with 0 is the lowest and 1200 the highest business credit score. As a general rule of thumb, a good business credit score is somewhere between 622 – 725. A very good business credit score is between 726 – 832.

Does bad credit affect getting a business loan? ›

Yes, when you have fair or bad credit (FICO credit score below 669), business loans can be hard to get. You'll need to find lenders that specialize in lending to businesses with bad credit, compare multiple offers to find the most affordable option that fits your needs and be willing to accept more expensive loans.

What is a good credit score for a LLC? ›

What is a good credit score for an LLC? A good credit score for an LLC is typically considered to be in the range of 600–800, similar to your personal credit score.

What is a good Duns and Bradstreet score? ›

Types of D&B ratings

To be eligible for loans and decent credit ratings, this particular score should fall within the 80 to 100 range. Anything lower than that may indicate difficulty with making payments. Businesses within the 0 to 49 range are considered high risk and would dissuade investors or lenders.

What does business credit start at? ›

Business credit scores have different ranges. The Experian Intelliscore and the D&B Paydex score both start at 0 and go up to 100. Other scores may start at a different number. If your business hasn't established credit, you may have a low credit score or no credit score at all.

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