Wells Fargo Logo
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6.5

Overall Score

LAST UPDATED: October 7th, 2022

Wells Fargo is a long-time American financial institution, with roots reaching back to the California Gold Rush in the mid-1800s. Wells Fargo was founded in 1852 and opened for business in San Francisco and Sacramento, California. Since then, they have expanded with over 6,000 locations across the United States. The six-horse stagecoach is an easily recognizable symbol for Wells Fargo and dates back to the period of time when Wells Fargo operated a stagecoach line across the western part of the U.S. Wells Fargo is currently the fourth largest banking institution in the United States. Consumers that choose Wells Fargo should remember that they must have a credit score of 550 or higher.

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The Good

  • Loan Terms
  • SBA-Approved Lender
  • Lines of Credit

Loan Terms

Wells Fargo's business loan and credit options are geared mainly toward small businesses, even more so than other banking institutions. Their BusinessLoan™ term loan amounts range from $10,000 to $5 million and are unsecured, meaning they do not require collateral. The repayment terms range from two to six years and interest rates start at 6.5 percent. They also offer a 0.25 percent discount on that rate if a business applicant sets up automatic payments from a Wells Fargo business checking account.

SBA-Approved Lender

Wells Fargo is an SBA approved lender for SBA 7(a) and 504 term loans. Wells Fargo also offers four more types of business loans. Their equipment loan is very similar to a business term loan except that the vehicle or equipment purchased with the loan is used as collateral. The other three types of loans offer higher loan amounts ($50,000 to $500,000), prime-based interest rates, and require commercial real estate as collateral.

Lines of Credit

The Wells Fargo business lines of credit are marketed to both established businesses and new businesses. For businesses that are more than two years old, the credit amounts extend from $5,000 to $100,000 and do not require collateral. For new business, a secured line of credit with a Wells Fargo savings or CD account is available. The interest rates for each of these credit lines is tied to the prime rate.

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The Bad

  • Application Process
  • Fees
  • Missing Information
  • Focuses
  • Reputation
  • Service Area

Application Process

There is a substantial amount of business and personal information needed to complete an application. The needed information includes:

  • The business name, address, phone and fax numbers, and tax identification number
  • The date the business was established
  • Ownership type and the number of owners
  • Annual revenue
  • Business banking account numbers and balances
  • The applicant's name, address, phone number, citizenship, and social security number
  • Annual household income
  • Personal banking account numbers and balances
  • Primary contact information

Fees

For a BusinessLoan™ term loan, as well as an equipment loan, there is a $150 flat documentation fee; however, it can be waived if the business loan is part of a Business Services Package. For secured loans of larger amounts, there are larger closing costs based on a percentage of the loan amount. It is similar for the business lines of credit. There is an opening fee of $0 to $250, depending on the loan amount, with a similar renewal fee each year. For larger lines of credit, the fees are correspondingly larger as well.

Missing Information

Overall, there were several items that Wells Fargo left undisclosed about their loans:

  • APR range
  • Minimum application requirements (credit score, time in business, annual revenue)

Focuses

Wells Fargo focuses mainly on financing for established businesses with a predictable revenue. Startups and new businesses will have a more difficult time finding funding through Wells Fargo.

Reputation

Wells Fargo has a fair number of online positive reviews, but there are many more easily found negative reviews. Most of the complaints are related to excessive or seemingly unnecessary fees and overdrafts. Many complaints also specifically pointed to a lack of reliable customer service in an industry that relies on in-person processes and relationships. However, even some of the negative reviewers acknowledge that the lack of customer service indicates a focus on effective fiscal management; in other words, that Wells Fargo is more concerned with managing its financially responsibly than to catering to customers.

Service Area

Several U.S. states do not have physical Wells Fargo locations, which leads us to believe that you cannot take out of a business loan if you are in one of those states. States without Wells Fargo locations include...

  • Hawaii
  • Oklahoma
  • Louisiana
  • Missouri
  • Kentucky
  • West Virginia
  • Maine
  • New Hampshire
  • Vermont
  • Rhode Island
  • Massachusetts
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The Bottom Line

Wells Fargo is a well-established banking institution that offers financing options to small businesses through a variety of loan and line of credit types. By providing unsecured loan and line of credit options, small business owners have more opportunities to qualify for and secure financing. The company is also an SBA lender, giving both established and emerging businesses the opportunity of apply for and securing SBA loans. Wells Fargo does charge upfront fees for several of the financing options, but the fees for the unsecured and smaller funding sources are fairly minimal while more extensive financing requires larger closing costs. While Wells Fargo has received a large number of negative reviews, they continue to be one of the most prominent banks in the United States. Those who do not apply for business loans from Wells Fargo or other big banks should consider seeking financing through alternative lenders.

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Star Rating

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4.4

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47 Reviews

Review Breakdown

5 grade

64%

4 grade

23%

3 grade

4%

2 grade

0%

1 grade

9%

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Mario Martin Huntsville, TX

Some years earlier I had researched quite a few "business loan" lenders, and of course "interest rates" was the main concern that I had. I've used business loans in the past from a few reliable resources, so I knew exactly what I was looking for in my business loan effort. My "son-in-law" had suggested that I give Wells Fargo some consideration. Initially I wasn't interested in using a bank because of the higher interest rates and the undue delays that I had experienced in the past. I went online and researched Wells Fargo and scheduled an appointment with a Wells Fargo representative. I was so impressed with the knowledge, sensitivity and professionalism of the Wells Fargo representative that I applied for the loan. Needless-to-say, the loan process was easier than I expected, and the interest rates competitive. What impressed me the most was how detailed oriented, and personally involved Wells Fargo continued to be in the beginning and end helping me to reduce my anxiety!

1 year ago

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Mary Kate F Greenville, SC

I have been a customer of Wells Fargo for many years now and have had an extremely good experience with them… they have a plethora of financial tools and products to provide you with the best options and resources for taking out a loan. They truly help you and guide you along every step of the way, doing everything they can to find the right loan for your business, not to mention all the while exhibiting top notch customer service! Wells Fargo has also always been very professional, being receptive and responsive to any issues that I have ever had concerning my loans. Overall, I am satisfied with Wells Fargo and would recommend them should you or your business ever be in need of a loan.

2 years ago Edited March 28, 2022

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scotty Saint Paul, MN

I had pretty good credit score at the time when I got my business loan from Wells Fargo. They laid out a few options for me that they thought would fit my business plan as well as my income and revenue. Even today they still offer advisors and any kind of help I would need as a small business owner and most of it's for free which I really appreciate. It's also nice having one of the big boys on the block represent you cuz you have just that much more confidence in your investing. I would say one thing about the actual process mine is probably a goofy case, but whoever was entering the loan in their system entered it as a debt consolidation loan. So after I got word that my new loan had been approved I logged on to their business portal and I seen that it was still pending so I logged into my personal web personal banking and I seen my credit card was paid off and some of the loan was on there still that I could use. So I called over there explaining them what happened I said I wasn't a debt consolidation that was supposed to be for my small business loan and without hesitation I don't know if this is the only way they could process it in their system but they made it look like as if I paid that loan off that day got the loan and paid it off and then got another loan which was my small business loan so it actually boosted my credit pretty good help me out in the beginning of my tough times as a small business owner. I would recommend Wells Fargo business loans and business portal for banking for any small business or large business I've been with them for 20 years plus.

2 years ago

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Christopher M Harper Katy, TX

I have been with Wells Fargo for many years. During this period have interacted with them in many ways both personally and from a business perspective. I find they provide a customer focused experience and when an appointment is set with them, I find they allocate the time and spend their time working out how they can help resolve the issue you have, or explain how their services could be of benefit in other areas of your life. The personal bankers have helped in providing a dedicated resource that you can call and email for immediate assistance. This has been especially helpful from the business perspective.

2 years ago Edited March 23, 2022

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Autumn Lewiston, ID

When starting a small business I looked into Wells Fargo business loans as a possible lender. I liked that all their loan information was listed on their website and was easy to read and understand. They have options for different interest rates, repayment terms, and were good communicators with me. I ended up going with another lender that was more reputable.

2 years ago

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JAKE American Fork, UT

I have used Wells Fargo for a business loan in the past and they were a good company to work with. The application process was ok. It was more complicated than other online companies I have worked with. There was a few extra steps that were a little time consuming. Interest rates were a good. Customer service was ok. I found it more effective to go into a branch when I had questions.

5 years ago

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K.M. P. Charlotte, NC

I really liked that there were multiple types of financing available with high borrowing amounts. It seems that the rates tend to be inexpensive and they have a few additional fees. Most of their website advertising is clear & informative, but they require you have a high credit score requirement and the funds can take a while to disburse.

1 year ago

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Stacy Carter Red Cliff, CO

Wells Fargo business loan was an okay experience. They did what they said they would do, without any bells and whistles. It was a very unpersonalized experience, but everything went as they said it would go.

2 years ago

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Dale L Farmer Littleton, CO

I have been banking with them for a long time. They have been very helpful when I had problems and when applying for a business loan.

4 years ago

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Brittany Norfolk, VA

I like the variety of the financing offers you can choose from the also the application process was simple

2 years ago

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Jennifer Palmer, AK

Fair rates and good locations with very nice associates

2 years ago