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How to Get a Small Business Loan in Wisconsin
May 19, 2022
wisconsin

How to Get a Small Business Loan in Wisconsin

Wisconsin is home to more than 461,525 small businesses, according to the most recent figures by the U.S. Small Business Administration (SBA). These businesses employ 1.3 million workers and comprise 49% of the private workforce in the state. The top industries for Wisconsin small businesses include professional, scientific, and technical services, construction, retail trade, real estate, and health care. 

If you own a small business in the Badger state or would like to launch one, small business loans may come in handy, no matter your industry or goals. Here’s what you need to know about small business loans in Wisconsin. 

Uses for a Small Business Loan in Wisconsin

Wisconsin business loans can cover a variety of business-related expenses. You can also use them to build or grow your credit. Some of the most common uses for additional working capital include:

  • Startup costs
  • Commercial real estate
  • Debt consolidation
  • Refinancing
  • Inventory
  • Equipment
  • Expansion costs

Types of Small Business Loans in Wisconsin

There are many different types of small business loans in the state of Wisconsin. When you do your research, you’ll find that some loans are easier to qualify for than others. However, loans with strict requirements usually offer better rates and terms. The most common types of small business loans include: 

Term Loans

Traditional bank loans offer a large sum of money upfront. You repay them through fixed monthly payments over a few months to a few years or even longer. While they typically require excellent credit and sufficient revenue, bank loans are known for low-interest rates and attractive terms. You may get one at a bank, credit union, or online lender. 

Find Out If You Qualify

Line of Credit

A line of credit may make sense if you’d like a flexible financing solution. Upon approval, you can withdraw funds whenever you’d like up to a set credit limit, usually based on your credit and other factors. It’s similar to a credit card but typically offers larger amounts and lower rates.

SBA Loans

SBA loans are partially guaranteed by the SBA and given by SBA-approved lenders. They offer up to $5 million in funding with repayment terms of up to 25 years. There are several SBA loan programs, including:

  • The Standard 7(a)
  • 7(a) Small Loan
  • SBA 504 Loan
  • Export Loan
  • SBA Express
  • Veterans Advantage
  • CAPLines

Commercial Mortgage 

A commercial mortgage works a lot like a traditional mortgage you take out when buying a home. But it’s intended to fund commercial property, like an office building or warehouse. You can also use it to renovate a space for your business. In most cases, commercial mortgages come with variable interest rates that fluctuate based on the market.  

Microloans

Microloans are usually offered by mission-based nonprofits and government organizations, like the SBA and USDA. If you need a smaller loan of up to $50,000, a microloan might make sense. In addition to funding, many microloan lenders offer mentorship and other resources for entrepreneurs and small business owners. 

Equipment Loans

If your business depends on equipment, like computers, fax machines, headsets, or routers, equipment loans should be on your radar. Depending on the business lender, you can fund up to 100% of the cost of new or used equipment. Since equipment loans are secured to your equipment, they’re easier to get.

Invoice Factoring

Invoice factoring is when you sell your invoices to a factory company for a lump sum of cash. The factoring company will own your invoices and collect payment from your customers on your behalf. Invoice factoring can be a smart move if you have slow-paying customers and cash flow issues.

Merchant Cash Advance

If you accept debit and credit card payments from your customers, a merchant cash advance (MCA) can give you easy access to cash. While repayment methods vary, most lenders require you to pay them back through a percentage of your total sales. You can get approved for an MCA, regardless of your credit. 

Business Resources for Wisconsin Business Owners

Consider these resources to support your small business in Wisconsin.

  • Wisconsin Small Business Development Center (Wisconsin SBDC): Whether you’re a startup or have been around for a while, Wisconsin SBDC can help you with free consulting, training, and resources. Its events focus on financial management, accounting software, performance reviews, and employee retention. 
  • Wisconsin Economic Development Corporation: This organization strives to support entrepreneurship in Wisconsin. Through a capital catalyst program, a partner grant, mentorship, and more, it does this.
  • InnovateCreated by the University of Wisconsin, Innovate’s mission is to foster a strong culture of innovation and entrepreneurship on campus. It collaborates with several campus-based and affiliated organizations. 

Conclusion: Achieve Your Goals with Wisconsin Business Loans

With small business loans in Wisconsin, you can receive the capital you need to succeed with your venture. However, before you sign on the dotted line and commit to a loan, compare the various options. This way, you can select the right one for your particular business. 

Fora Financial

Editorial Note: Any opinions, analyses, reviews or recommendations expressed in this article are those of the author's alone, and have not been reviewed, approved, or otherwise endorsed by any of these entities.

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Fora Financial is a working capital provider to small business owners nationwide. In addition, the Fora Financial team provides educational information to the small business community through their blog, which covers topics such as business financing, marketing, technology, and much more. If you’d like to see a topic covered on the Fora Financial blog, or want to submit a guest post, please email us at [email protected].