Business loans may be required for a new business or an existing business that’s moving into a new line of production. Wells Fargo covers one’s business finance needs with a wide range of solutions including credit cards, lines of credit, business loans, letters of credit, SBA loans, Business Real Estate Financing, Healthcare Practice Financing, and more!
For years now, Wells Fargo has been encouraging small businessowners to take their business to new heights. For this,they offer various types of loan products.Some of these are secured loans and many of them are unsecured loans. The traditional model of loans against collaterals is part of a secured loan, which is available on low interest.
Nonetheless loans are dependent on various variables including loan amount, tenure, rate of interest, collaterals offered, and more.
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Cash flow is an important aspect in one’s business. Wells Fargo covers its customers using lines of credit, where an approved amount may be borrowed by the business in bits and parts. This helps the borrower as the interest is applicable only on the amount taken and not the approved amount!Credit lines help businesses secure more orders and unsecured loans.
Wells Fargo also covers its borrowers on Small Business Administration Loans (SBA Loans). These are partially guaranteed by the SBA and the borrowers get the best terms and rates, which are unavailable in an open market otherwise.
There are two types of SBA loans:Wells Fargo SBA 7(a) Loans and Wells Fargo SBA CDC/504 Loans.
The Wells Fargo SBA 7(a) Loans can fund a business’ working capital, equipment and real estate financing needs for tenures up to seven, ten or twenty-five years respectively. The loan amount, however, has a ceiling limit of $5,000,000 for small businesses.
Remember: this loan option is not for refinancing a debt or paying a business’ delayed taxes.
Typical unsecured business loans are at 8.25% for tenures of up to one to five years and/or an amount of $10,000 to $100,000. This can be used for business expansion
Office renovation, increasing working capital or other expenses. It has a one-time opening fee of $150.
Do remember though that the rate of interest, tenure and loan amounts depicted here are indicative and will vary as per the borrower’s credit score and other factors. These are solely decided by issuing bankers.
For medium sized business, Wells Fargo Business Loans offer the Wells Fargo Advancing Term Loan. This is more like a line of credit offered for an amount of $100,000 to $ 500,000! The amount a business borrows in a year gets converted to loans of up to 5 years.
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This loan can be secured only against accounts receivable, cash in hand, inventories, equipment and machinery employed by the business. However, the loan collateral cannot include office premises.
This loan is for businesses that have an annual turnover of $ 2,000,000 to 5,000,000.
Illustrated above are only a few of the main and commonly availed loan types. There are other options too and one will need to reach a Wells Fargo loan officer for more information!
In conclusion, Wells Fargo stands behind most businesses to assist them in their growth and hence develop the economy of the nation. With Wells Fargo, one surely can’t go wrong!