Wells Fargo is established as a household name in banking. They offer a full suite of financial services for consumers and businesses. So, is a Wells Fargo business line of credit right for your operations? And, should you use this type of financing to help you build business credit?
Let’s look at a summary of the business lines of credit offered through Wells Fargo. Then, we’ll peek in at the rewards and benefits. After that, fin details about interest rates and more. Here’s everything you need to know to answer that question.
What is a Wells Fargo Business Line of Credit?
A Wells Fargo business line of credit is a revolving line of credit extended by Wells Fargo Bank. It can help increase your business working capital. Like a credit card, you’ll pay interest only on the amount you use, but the interest rate will typically be lower than that of a credit card.
With a line of credit just for cash flow/working capital, you may be able to access from $5K to $1K through the service. You can leverage both unsecured and secured business lines of credit through Wells Fargo, depending on your situation.
Unsecured Lines of Credit Available Through Wells Fargo
Wells Fargo offers two unsecured business lines of credit: Small Business Advantage® and BusinessLine®. These offers can help you take advantage of unexpected business opportunities or increase your cash flow temporarily.
The Small Business Advantage® line of credit was created for young businesses. If your company is less than 2 years old and you have established business credit, this is the type of line you’ll want to look into.
A BusinessLine® line of credit is designed for established companies. So, if your business is two or more years old and you have an established business profile, start here.
Secured Line of Credit Available Through Wells Fargo
If your credit profile needs some work, a line of credit secured by your business collateral provides another option.
And, what if your business doesn’t have an established credit profile? As with most major banks, Wells Fargo offers secured credit lines. With collateral, you can access a BusinessLine® secured Wells Fargo business line of credit.
And, Prime lines of credit are for enterprise companies who need the benefits offered by secured financing.
Then, with responsible payment history, you could graduate up to an unsecured credit line pretty easily. Speak with an account representative once your financing is established for more information.
Wells Fargo Business Line of Credit Comparison:
*WSJ Prime Rate typically lingers around 5% and is continually changing. Wells Fargo’s business lines of credit are subject to a 5% floor rate.
**Annual fees will only be charged after the first year that you have a revolving business line of credit with Wells Fargo.
Does a Wells Fargo Business Line of Credit Offer Rewards?
The business lines of credit themselves that Wells Fargo offers do not come with rewards, in the typical sense. For example, a PNC business credit card offers cash rewards, points, travel, and more. You won’t be able to leverage any of this through the program, but there are benefits.
For one, you can link your line of credit with a MasterCard access card. And, this can provide you with promotions and partner offers you may not otherwise qualify for.
Another unexpected perk is that you can use your line of credit as overdraft protection on your Wells Fargo business checking account. So, if you’re at risk of paying NSF fees, the funds in your credit line account can provide insurance.
Final Thoughts
Wells Fargo has been around since the 1800s and is a trusted name in finance. When you work with this company to secure financing and build credit for your business, you can expect your experience to be in alignment with best practices. Choose the Wells Fargo business line of credit that’s right for you and apply today.
| And, if you need help obtaining business lines of credit like this, get our training that teaches how to obtain $100K in business credit in 30 days. |