Things to consider when preparing to apply for a BusinessLine® line of credit:
- Typically, guarantors have a FICO® Score of at least 680 at the time of application, and have been in operation for at least 6 months.
- A Wells Fargo BusinessLine® line of credit account requires personal guarantees from any owner with 25% or more ownership in the applicant business, with a minimum combined aggregate of 51% ownership.
- Additional information related to applying for credit can be found at our Business Resource Center:
All business applicants are unique and some exceptions may apply. All applications are subject to final credit approval.
How do I access or view my FICO Score with Wells Fargo?
Credit Close-UpSM is a centralized hub on wellsfargo.com where customers can easily view and manage their FICO® Score. Customers access Credit Close-Up within Wells Fargo Online®, through the Wells Fargo Mobile® app, or mobile browser. To enroll in Credit Close-Up, new and returning FICO® Score users will need to agree to updated Terms and Conditions.
My FICO Score is lower than 680. How does this impact my BusinessLine® line of credit application?
Your personal and business credit histories are some of the factors considered by lenders when reviewing credit applications. Typically, the lender decides based on the five Cs of credit: character, capacity, capital, collateral, and conditions.
What other factors are considered by lenders when reviewing a credit application?
When you apply for business credit, the lender will carefully examine your application to determine your creditworthiness. The lender will make a decision based on the five Cs of credit: character, capacity, capital, collateral, and conditions.
- Character: How you have handled past credit obligations. Both business and personal credit histories and experience are relevant.
- Collateral (when applying for secured credit options): Personal and business assets, such as investments, real estate, equipment, and cash.
- Capital: Business assets that can easily be turned into cash that may offer additional reassurance that your business can survive unexpected setbacks.
- Conditions: Internal and external factors affecting the ability of a business to repay a loan, and the intended use of the loan.
- Capacity: How you and your business will generate enough cash to repay the loan, along with any other personal or business commitments.
What is a personal guarantee of a business loan?
A personal guarantee is a condition a lender puts in a business loan agreement that requires business owners to be personally responsible for paying back the loan if the business fails to repay.
- A Wells Fargo BusinessLine® line of credit account requires personal guarantees from any owner with 25% or more ownership in the applicant business, with a minimum combined aggregate of 51% ownership.
How will my business partner’s credit worthiness impact the lender decision?
If your business partner is required to be a personal guarantor of the loan, then the business partner's credit worthiness will be considered by lenders when reviewing the application. A good credit rating increases the company's overall borrowing power. A poor credit rating can hinder the business' ability to get approved for credit.
