Don’t Forget About FastFlex
The OnDeck-Chase partnership isn’t the only game in town when it comes to fast weekly payment bank loans. Wells Fargo announced their own program, called FastFlex, in 2016 as part of a goal to lend $100 Billion to small businesses over five years.
deBanked was shown an anonymized bank statement snippet recently of a merchant that was purportedly being debited daily by Wells Fargo. So we reached out to Wells to ask if there might be a daily payment loan product that had not yet been announced.
“[F]or Wells Fargo’s FastFlex Small Business Loan, we only offer the weekly payment option, in which required payments are made on a weekly basis automatically deducted from the customer’s business-deposit account,” they responded. “None of our Small Business loan products have daily payments.”
While the mystery remains unsolved, Wells already compares its FastFlex product to OnDeck, Kabbage, and CAN Capital on their website. Loan amounts ranging from $10,000 to $35,000 come with 1-year terms, weekly repayment, and interest rates starting at 13.99%. Their loan calculator approximates a 1.09 total cost factor on a $25,000 loan.
Their underwriting criteria comprises of cash flow history, existing credit obligations, credit experience, payment history, and relationship status with Wells Fargo. Merchants are funded the day after accepting the terms.
Users on a handful of message boards have reported that cash flow history weighs heavily in the approval.Last modified: November 13, 2017