How to Get a Business Loan From Wells Fargo

(July 2024)

How to Get a Business Loan From Wells Fargo

In This Article

Are you looking for a way to grow your business, expand your operations, or take advantage of new opportunities? If so, you may be interested in getting a business loan from Wells Fargo, one of the largest and most trusted lenders in the U.S. Wells Fargo offers a variety of loans and lines of credit that can help you meet your business needs, whether you need working capital, equipment, inventory, real estate, or anything else.

Wells Fargo also partners with the U.S. Small Business Administration (SBA) to provide government-backed loans that offer more flexibility and benefits than conventional loans. Use this article to guide yourself through the steps of applying for a business loan from Wells Fargo. Follow these steps to enhance your chances of getting approved and getting the funds you need to take your business to the next level. Definitely, you are excited to read these key points. Read this article step by step to make sure you don’t miss any part of the gems.

To get a business loan from Wells Fargo:

  1. Understand How Business Loan Works
  2. Understand How Wells Fargo Operates
  3. Decide the Type of Loan You Need
  4. Get Familiar With the Requirements
  5. Gather All Your Personal And Business Documentation
  6. Apply for the Loan
  7. Negotiate the Terms and Conditions of the Loan

1. Understand How Business Loan Works

To obtain a business loan from Wells Fargo, understand how a business loan works. A business loan is a way of getting money from a lender, such as a bank, to use for your business. Use the money for different things, such as buying equipment, inventory, or real estate, or paying for everyday expenses. Now, read this:

When you get a business loan, you agree to pay back the money you borrowed, plus some extra money called interest and fees. Interest is the cost of borrowing money, and fees are the charges for using the lender’s service. You usually pay back the loan in regular amounts over a while, such as months or years. If you don’t pay back the loan on time, the lender can take something from you that you promised to give them if you can’t pay. This is called collateral or a personal guarantee.

2. Understand How Wells Fargo Operates

To apply for a business loan from Wells Fargo, understand how Wells Fargo operates.

Can you imagine you are dealing with a  bank that operates in 39 states in the United States, with a total of 4,599 branches and 12,000 ATMs? Here is a list of the states that Wells Fargo covers:

 

  • Alabama
  • Arizona
  • Arkansas
  • California
  • Colorado
  • Connecticut
  • Delaware
  • Florida
  • Georgia
  • Idaho
  • Illinois
  • Indiana
  • Iowa
  • Kansas
  • Maryland
  • Michigan
  • Minnesota
  • Mississippi
  • Montana
  • Nebraska
  • Nevada
  • New Jersey
  • New Mexico
  • New York
  • North Carolina
  • North Dakota
  • Ohio
  • Oregon
  • Pennsylvania
  • South Carolina
  • South Dakota
  • Tennessee
  • Texas
  • Utah
  • Virginia
  • Washington
  • Wisconsin
  • Wyoming

3. Decide the Type of Loan You Need

To procure a business loan from Wells Fargo, decide the types of loan you need. You have access to different types of business loans with Wells Fargo such as:

Wells Fargo is a bank that offers various types of business loans to help you start, grow, or manage your business. Some of the types of business loans you can get from Wells Fargo are:

Secured and unsecured business lines of credit

Choose this loan if you need a revolving credit account that lets you borrow money up to a certain limit and pay it back over time. You only pay interest on the amount you use, not the whole limit. To get secured lines of credit, have collateral, such as equipment or inventory.

Commercial real estate purchase and refinancing loans

Use this loan to buy, refinance, or improve commercial property, such as office buildings, warehouses, or retail stores. Know that these loans have fixed or variable interest rates and long repayment terms, up to 25 years. This is good for you if you want to expand your business location or invest in real estate.

Commercial real estate equity loans and lines of credit

Take out this loan to use the equity in your commercial property as collateral to borrow money for any business purpose.

Healthcare practice financing

Choose this loan if you are a healthcare professional, such as a doctor, dentist, veterinarian, or optometrist. You can use this loan for buying or starting a practice, buying equipment, expanding or renovating a facility, or consolidating debt.

SBA Loans:

These are U.S. Small Business Administration loans which include SBA 7(a) loans, and SBA 504 loans. These loans imply that SBA guarantees a portion of the loan in case you default. This reduces the risk for the lender and makes it easier for you to qualify.

4. Get Familiar With the Requirements

To take out a business loan from Wells Fargo, get familiar with the requirements. Meet some basic criteria that show your creditworthiness and ability to repay the loan. For example; you need to:

  • Have a good credit score, which reflects your payment history and debt level.
  • Be in business for at least two years, which shows your stability and experience.
  • Have a clear and realistic plan for how you are going to use the loan funds and how you want to repay them.

In addition, you must check the SBA website to see if your business meets the SBA loan requirements, such as being a small business, operating in the U.S., and being for-profit.

5. Gather All Your Personal And Business Documentation

To receive a business loan from Wells Fargo, gather all your personal and business documentation. provide some personal and business information that proves your identity, income, assets, liabilities, and ownership.

For example, you need to:

  • Provide your credit ratings, which are numerical scores that measure your credit risk.
  • Provide your bank statements, which show your cash flow and balance.
  • Provide your tax returns, which show your income and expenses.
  • Provide your business plan, which shows your vision, mission, goals, strategies, market analysis, and financial projections.
  • Provide your financial statements, which show your income statement, balance sheet, and cash flow statement.
  • Provide your legal documents, such as your business license, registration, contracts, leases, or permits.

6. Apply for the Loan

To obtain a business loan from Wells Fargo, apply for the loan. Submit your application online, by phone, or by visiting a branch location. Depending on the type of loan you want, you may need to fill out different forms and provide different documents.

7. Negotiate the Terms and Conditions of the Loan

To receive a business loan from Wells Fargo, negotiate the terms and conditions of the loan.

Once you submit your application, you are going to receive a decision within a few days or weeks. If the bank approves your application, you are going to receive a loan agreement that outlines the interest rate, fees, repayment schedule, and other terms of the loan.

Review the agreement carefully and negotiate any changes if needed before signing it. For example, you may want to lower the interest rate or extend the repayment term if possible.

Recap

To get a business loan from Wells Fargo,  understand how business loan works,

from choosing the best option for your business to meeting the requirements to submitting your application, to negotiating the terms and conditions.

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