7 Ways Wells Fargo Business Loans Can Help Your Company

7 Ways Wells Fargo Business Loans Can Help Your Company
Amy Fontinelle
on March 22, 2020
Read in 4 min

Wells Fargo, the nation’s third-largest bank, is a logical place to shop if you’re looking for a small business loan.

The bank offers secured and unsecured lines of credit, secured and unsecured term loans, SBA loans, commercial real estate loans, and healthcare practice loans.

If you’re interested in a small business loan from this lender, here’s what you need to know.

Secured Line of Credit Business Loan from Wells Fargo

If your business needs to establish or rebuild credit, a secured line of credit can help you do that while supplementing your cash flow or helping you fund new business opportunities.

Revolving credit lines as small as $5,000 and as large as $100,000 may be available, with rates as low as the Wells Fargo Prime Rate (4.25% as of June 14, 2018) plus 1%.

You only pay interest when you borrow against your line.

This line of credit has a $50 annual fee but no foreign transaction fees.

Cash advances over the counter or via ATM will carry a fee; so if you need cash, this form of financing isn’t for you.

For collateral, you’ll need a Wells Fargo savings or certificate of deposit account.

The more you can offer in collateral, the larger your line of credit is likely to be.

Wells Fargo Unsecured Business Line of Credit

If you lack collateral, Wells Fargo offers small businesses unsecured revolving lines of credit from $5,000 to $100,000.

A line of credit can cost you less in interest if you need to borrow smaller amounts intermittently instead of a lump sum all at once.

Like with the secured line of credit, interest rates can be as low as the Wells Fargo Prime Rate plus 1% and you only pay interest when you borrow against your line.

This lender has two unsecured lines of business credit:


The BusinessLine line of credit is ideal for businesses in operation for 2+ years,

Small Business Advantage

While the Small Business Advantage line of credit is ideal for younger businesses and is capped at $50,000.

The annual fee for your line depends on how big it is. There are no foreign transaction fees.

The BusinessLine has no scheduled annual review; the Small Business Advantage line has a five-year term.

You can also earn 1 reward point for every $1 spent when you use your line of credit MasterCard to make purchases.

That means you won’t miss out on the rewards you could get with a business credit card, and you’ll get a lower interest rate, too.

Unsecured Business Term Loans from Wells Fargo

If you need to borrow $10,000 to $100,000 without putting up collateral, consider the unsecured Wells Fargo Business Term Loan.

You can repay it over one to five years at fixed rates of 6.50% to 22.99% depending on your credit history and how much you want to borrow.

If you only need to borrow $10,000 to $35,000, consider the FastFlex Small Business Loan.

It requires fixed weekly payments from your Wells Fargo business account for one year and charges an interest rate of 13.99% or higher.

Unsecured term loans are best for business expansions, facility remodels, emergency repairs, and other large, one-time expenses.

At the high end, these unsecured loan rates are comparable to credit card rates.

But because term loans have a finite repayment schedule, you may pay less in interest compared to if you dragged out repaying a credit card balance forever.

Equipment Financing from Wells Fargo

Wells Fargo’s Equipment Express loan is for small business owners that need to borrow $10,000 to $100,000 and can repay it over 2 to 6 years.

Fixed rates start at 5.75% for vehicle loans and 6.25% for other types of equipment.

Your rate will depend on your loan term, credit history, and collateral.

Wells Fargo will lower your interest rate by 0.25% if you pay automatically from your Wells Fargo business checking account.

You can borrow up to 100% of the collateral’s value.

There are no annual, application, or prepayment fees and you can use one loan for multiple purchases.

But there is a $150 one-time loan opening fee.

Use the proceeds of your equipment financing loan for any number of purposes: vans, trailers, passenger vehicles, food service equipment, manufacturing equipment, packaging equipment, health care equipment, and more.

Wells Fargo SBA Loans

Wells Fargo is one of the best banks for small business loans if you’ve had trouble getting approved.

For businesses that aren’t financially strong enough to qualify otherwise, the government’s guarantee to banks through the Small Business Administration loan offers an incentive to lend anyway.

That doesn’t mean you’re guaranteed to get approved, just that you’ll get a second look with less stringent lending standards.

You can use an SBA loan for the same purpose you would use a regular business loan for:

  • purchasing real estate or equipment
  • funding construction
  • acquiring a business or buying out a partner
  • expanding your business
  • obtaining working capital
  • and more.

Wells Fargo issued more Small Business Administration loans than any other lender in 2016.

It made more than 1,500 of these loans totaling nearly $459 million.

Loan amounts, fees, interest rates, and terms vary by loan type.

SBA 7(a) and SBA 504 loans are available.

Related: Government Loans: The Ultimate Guide to SBA Lending

Commercial Real Estate Wells Fargo Business Loans

Wells Fargo offers commercial real estate loans to purchase, refinance, or use existing equity.

The bank also offers a credit line.

If you want to purchase or refinance, loans from $50,000 to $750,000 are available with no application or appraisal fees.

The origination fee is 1% or $5,000, whichever is lower.

For a purchase, you can borrow up to 80% of the property’s value; for a refinance, you can borrow up to 75% of the property’s value.

Commercial equity loans and lines are available from $50,000 to $500,000 with the same fees, and you can borrow up to 75% of the property’s value.

Wells Fargo Healthcare Practice Loan

Wells Fargo offers a number of ways to finance up to 100% of your healthcare practice’s needs, whether you’re just getting started, acquiring a practice, buying equipment, expanding, or refinancing debt.

American Dental Association and American Animal Hospital Association members are eligible for preferred rates.

Interest rates are fixed; loan limits depend on your industry.

Wells Fargo Small Business Review – The Bottom Line

Wells Fargo offers all the major categories of business financing.

Its lines and loans have low APRs for the most qualified borrowers, but less qualified borrowers may find that their rate is too high or that they need to apply for an SBA loan.

Fortunately, Wells Fargo is the top SBA lender in the business.

That’s a major reason why it made our list of the best banks for small businesses.

You should always shop around to make sure you’re getting the best rate and terms, but Wells Fargo’s business loans are worth a look.

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Amy Fontinelle Finance Journalist

Amy Fontinelle is a writer, editor, and personal finance expert.

Her articles have appeared at Investopedia, Bankrate, MassMutual.com, The Simple Dollar, Interest.com, Yahoo, Forbes.com, SFGate.com, Bankaholic, Mortgage-Calc.com, Saving Advice and other sites.

Amy’s clients include personal finance websites, financial institutions, public policy organizations, academic journals, and professional economists.

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