Wells Fargo is ditching the paperwork for small businesses in need of short-term credit with the introduction of FastFlex, an online, fast-decision loan that is funded as soon as the next business day.
The market for small business loans has been a prime target for fintech startups who have been taking on the conservative banking establishment by offering smart online services to companies seeking alternatives to the often lengthy and time-consuming process of applying for a bank loan. Innovations in lending have led to a slew of new players in invoice and supply chain financing, equity crowdfunding and SME-to-SME loan packaging practices as a credible alternative to traditional bank lending.
Wells Fargo says FastFlex will form a key part of its ambition to achieve a five-year $100 billion lending goal by providing a more convenient option to a traditionally underserved market.
“Because small businesses want faster, more convenient loan options, online and at competitive rates, we created Wells Fargo FastFlex Small Business Loan,” says Lisa Stevens, Wells Fargo’s head of small business. “With a $100 billion lending goal, we want to make every responsible small business loan we can. FastFlex Small Business Loan will help by offering short-term credit through an easy, fast-decision application process that includes competitive interest rates, clear terms and as-soon-as next day funding.”
The typical FastFlex Small Business Loan customer is expected to have strong cash inflows, and short-term credit needs for funding. Loans will be available with one-year terms, at amounts ranging from $10,000 to $35,000, with required payments made on a weekly basis automatically deducted from the customer’s business-deposit account.
It will be available to Wells Fargo business-deposit customers who have been a customer of the bank for at least one year.
Built inhouse, the new loan product has already been piloted with a number of pre-qualified accounts, and will be rolled out to all customers later this month.