It’s 2016 and Wells Fargo has decided to get into the online small business loan venture. It’s unusual for a big business to attempt to gain market share in an already established business model and analysts are speculating that the bank might be anxious because of all the potential business they are losing to alternative lenders. One of the biggest hurdles Wells Fargo has to overcome is the easy business financing that alternative online lenders are known for. Put another way; the online lenders are just much faster than big banking institutions and loans are always time sensitive.
While Wells Fargo fights to match the speed of online business loan companies, their rates and strict rules may still deter a lot of the businesses that turn to online business loans. The new Wells Fargo online business loan venture’s interest rates range between 13.99% and 22.99% and the bank still puts a lot of weight on the credit score of the company that is getting the loan.
The answer is definitely ‘yes’, Wells Fargo wants to take over online lending’s, but can they? They are late to game already and there are plenty of well-established and respected alternative lending companies that are known for easy business financing. A representative from Wells Fargo said they were playing around with the idea of partnering with an online lending company but decided against it, stating they would be able to provide a better product if they created it themselves.
Ace Biz Funding is an alternative online lender with experience, speed, and great rates. When it comes to your small business loan, trust the best and trust the experienced.