Bank of America vs. Wells Fargo
Both Bank of America and Wells Fargo are brick-and-mortar banks with a wide U.S. reach. Bank of America offers more loans, including term loans, SBA loans, lines of credit, equipment loans and commercial real estate loans. Wells Fargo focuses on lines of credit and SBA loans.
Both banks offer multiple lines of credit catering to small businesses in different growth stages. Both offer secured and unsecured lines of credit with similar credit limits, though you’ll need much higher annual revenue of $2 million for Wells Fargo’s secured line.
They also both offer options for startups. You may receive a higher credit limit up to $50,000 if you go with Wells Fargo’s Small Business Advantage® line of credit, and you won’t need to back it with a cash deposit as you would with Bank of America’s cash-secured credit line.
With Wells Fargo, you’ll need a personal credit score of at least 680. Bank of America doesn’t state its minimum credit score requirement for every loan. It requires at least a 700 FICO score for its unsecured business line of credit and unsecured term loan. But as long as you have strong credit and revenue, you open up the possibilities of many different loans with Bank of America.
Bank of America vs. U.S. Bank
Bank of America and U.S. Bank offer similar loan options. Bank of America’s offerings span everything from term loans and business lines of credit to SBA loans and equipment loans. U.S. Bank covers SBA loans, lines of credit, equipment loans and term loans.
U.S. Bank’s equipment loans stand out apart from competitors. It offers financing up to $2.5 million and allows borrowers to finance up to 25 percent of additional costs like installation, tax and freight. You also don’t have to pay a down payment if you choose a term between 24 and 60 months, and you may be able to get a longer term loan. Bank of America only allows you to pay off equipment loans for up to five years.
While both banks offer multiple lines of credit, Bank of America provides a credit line for startup businesses that U.S. Bank doesn’t offer. The Bank of America cash-secured line asks for a $1,000 cash deposit to secure it, and credit limits start at $1,000. U.S. Bank provides four lines of credit, including its Cash Flow Manager that offers credit lines up to $250,000. Unlike Bank of America, you won’t have to pay an annual fee on lines over $50,000.
The main difference between these two banks are in the specific products and features they offer. You’ll want to compare the individual products to make the best decision for your business. Bank of America does offer business rewards if you already bank with the lender, potentially reducing the interest rate you’ll receive.
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To select the top small business lenders, Bankrate considers more than 20 factors. These factors include loan amounts, approval and funding times, credit requirements, APR or factor rate ranges, fees, and easy-to-find rate and fee disclosures. Bankrate reviewed more than 30 lenders and gave each a rating, which consists of five categories:
- Accessibility: Factors considered in this category include minimum loan amounts, approval and funding speed, minimum annual revenue and minimum credit score.
- Affordability: This section measures interest or factor rates and fees.
- Transparency: How easy it is to find important rates, fees and eligibility requirements are considered in this category.
- Customer experience: Customer service hours, online applications and app availability are considered in this category.
- Flexibility: This category considers factors like the number of loan products and ability to change payment due date.
Editorial disclosure: All reviews are prepared by Bankrate.com staff. Opinions expressed therein are solely those of the reviewer and have not been reviewed or approved by any advertiser. The information, including rates and fees, presented in the review is accurate as of the date of the review. Check the data at the top of this page and the lender’s website for the most current information.
