Wells Fargo Business Line of Credit: A Complete Guide

For American entrepreneurs and business owners, maintaining healthy cash flow is the lifeblood of their operation. Unexpected expenses, seasonal lulls or growth opportunities require access to flexible capital. A business line of credit offers a revolving source of funds you can draw from as needed, providing a critical financial safety net.

Wells Fargo, one of the largest banks in the United States, offers several business lines of credit products tailored to companies at different stages of growth.

This guide will walk you through the various options, from those designed for new startups to lines for established, multi-million dollar enterprises. We will cover the specific requirements, interest rates and application process, giving you the information you need to make an informed decision for your business.

Wells Fargo Business Line of Credit Options at a Glance

Wells Fargo segments its business lines of credit based on your company’s time in business and annual revenue.

The main options include:

• Small Business Advantage® for new businesses
• BusinessLine® for established companies
• Prime Line of Credit for larger, middle-market businesses

Comparison

Designed for startups and young companies, the Small Business Advantage® line of credit is an excellent option for businesses that have been in operation for less than two years.¹ It’s an unsecured line of credit that helps new entrepreneurs manage cash flow without needing to put up specific collateral.

For businesses that have passed the two-year mark, the BusinessLine® line of credit offers a higher credit limit. This product remains an unsecured line of credit, making it a popular choice for established small and medium-sized businesses.

The Prime Line of Credit is a secured revolving line of credit. Terms are up to three years for lines from $100,000 to $500,000, and one year for lines from $500,001 to $3,000,000.²

Small Business Administration (SBA) Loans

In addition to its direct lending products, Wells Fargo is an SBA-preferred lender, offering government-backed loans that can be a valuable option for businesses that may not qualify for conventional financing.³

SBA 7(a) Loans: Ideal for business acquisitions, expansions, and working capital, with amounts up to $5 million.³

SBA 504 Loans: Geared toward acquiring major fixed assets like land, buildings, or essential equipment, with amounts up to $15 million.³

The process of securing a business line of credit involves meeting the bank’s qualification criteria and submitting a thorough application. Understanding these steps can help streamline the process.

How to Get a Wells Fargo Business Line of Credit: Requirements and Application

Wells Fargo Business Line of Credit Requirements

While specific requirements vary by product, Wells Fargo generally evaluates applications based on a framework known as the five Cs of credit: Character, Capacity, Capital, Collateral, and Conditions.⁴

• Character (Credit History): Wells Fargo will review both your personal and business credit history. For its unsecured lines, guarantors typically need a FICO® Score of at least 680 at the time of application.⁴
• Capacity (Cash Flow): The lender assesses your business's ability to generate sufficient cash flow to repay the funds you borrow.
• Capital: The amount of money you and other owners have invested in the business is reviewed to ensure you have a financial stake in its success.
• Collateral: For a Wells Fargo secured business line of credit like the Prime Line, you must have business assets (such as accounts receivable, inventory, or equipment) to pledge as security.⁴ Collateral is not required for the BusinessLine® or Small Business Advantage® lines.¹
• Conditions: The bank will consider the intended use of the funds, the length of time you’ve been in business, and broader economic conditions.

Understanding Personal Guarantees

For its unsecured products, Wells Fargo requires owners to personally guarantee the debt. This means if the business is unable to repay the line of credit, the owner is personally responsible for the balance.

For the Small Business Advantage® line, personal guarantees are required from any owner with 20% or more ownership, with a minimum combined aggregate of 51% ownership.⁴

For the BusinessLine® line, personal guarantees are required from any owner with 25% or more ownership, with a minimum combined aggregate of 51% ownership.⁴

How to Apply for a Wells Fargo Business Line of Credit

You can apply for the unsecured lines of credit online or in person at a Wells Fargo branch. For the Wells Fargo Prime Line of Credit, you must call their dedicated line to begin the process.⁴

To complete your application, you will need to provide the following information:

• Legal business name, address, and phone number
• Business tax ID or Social Security number
• Date the business was established and ownership type
• Gross annual revenue
• Personal information for each guarantor (name, address, SSN, date of birth, etc.
• Percentage of ownership and annual household income for each guarantor

For the Prime Line, additional documentation is required, including two years of personal and business tax returns and company-prepared financial statements.⁴

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Understanding Rates, Fees, and Approval Times

Wells Fargo Business Line of Credit Interest Rate

Interest rates are variable and tied to the U.S. Prime Rate, which is the baseline rate banks use for lending. Your final rate is expressed as "Prime + a spread" (e.g., Prime + 1.75%).

• Small Business Advantage®: Rates range from Prime + 4.50% to Prime + 6.50%.¹
• BusinessLine®: Rates range from Prime + 1.75% to Prime + 9.75%.¹
• Prime Line of Credit: Rates start as low as Prime + 0.50% but are subject to a floor rate of 5%.⁵

Associated Fees

• Small Business Advantage®: No annual fee. A 4% fee ($10 minimum) applies to wire transfer advances.¹
• BusinessLine®: The annual fee ($95 or $175 depending on the line amount) is waived the first year. A 3% fee ($10 minimum) applies to ATM and over-the-counter cash advances.¹
• Prime Line of Credit: An annual fee of 0.25% of the total credit line amount is due at opening. There are no cash advance fees.²

Wells Fargo Business Line of Credit Approval Time

The Wells Fargo business line of credit approval time varies by product.

For the unsecured lines (Small Business Advantage® and BusinessLine®), you will receive a written notification from Wells Fargo after your application is reviewed.⁴

For the Prime Line of Credit, processing can take up to two weeks after you have submitted all required documentation.⁴

Final Thoughts

Securing a Wells Fargo Business Line of Credit is an excellent step for managing domestic operational costs. However, for American entrepreneurs and expats running businesses with international connections, whether paying overseas suppliers, hiring global talent, or receiving payments from foreign clients, domestic financing is only part of the puzzle.

Traditional banks often charge high fees and use marked-up exchange rates for international transfers. This is where an alternative like Wise Business can complement your domestic banking.

Save Time and Money On Overseas Payments With Wise Business

Wise Business can help you save big time on international payments.

Wise is not a bank, but a Money Services Business (MSB) provider and a smart alternative to banks. The Wise Business account is designed with international business in mind, and makes it easy to send, hold, and manage business funds in 40+ currencies.

Signing up to Wise Business allows access to BatchTransfer which you can use to pay up to 1000 invoices in one go. This is perfect for small businesses that are managing a global team, saving a ton of time and hassle when making payments.

Some key features of Wise Business include:

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• Access to BatchTransfer: Pay up to 1000 invoices in one click. Save time, money, and stress when you make 1000 payments in one click with BatchTransfer payments. Access to BatchTransfer is free with a Wise Business account

• Auto-conversions: Don't like the current currency exchange rate? Set your desired rate, and Wise sends the transfer the moment the rate is met

• Free invoicing tool: Generate and send professional invoices

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Frequently Asked Questions (FAQs)

Does Wells Fargo offer a business line of credit?

Yes, Wells Fargo offers several business lines of credit tailored to different business needs. The primary options are the Small Business Advantage® line of credit, the BusinessLine® line of credit, and the Prime Line of Credit.

How does a $10,000 line of credit work?

A $10,000 line of credit works like a flexible loan or a credit card for your business. Once approved for a $10,000 limit, you can draw funds from it whenever you need, up to that maximum amount. As you repay the principal, your available credit is replenished. This revolving nature makes it ideal for managing fluctuating cash flow needs.

What is the minimum credit score for a business line of credit?

The minimum credit score for a business line of credit varies by lender. While some online lenders may work with scores in the low 600s, traditional banks like Wells Fargo typically prefer stronger credit profiles. For its unsecured lines of credit, Wells Fargo states that guarantors typically have a FICO® Score of at least 680 at the time of application.⁴

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Sources:

1. Business Lines of Credit | Wells Fargo
2. Prime Line of Credit | Wells Fargo
3. SBA Loans | Wells Fargo
4. Business Line of Credit FAQs | Wells Fargo