Small Business Loans in Wisconsin: How To Get Funding

Wisconsin is a state committed to fostering entrepreneurship. True to form, many organizations offer support to small business owners in the area.

For example, the Wisconsin Small Business Development Center (Wisconsin SBDC) can help you with free consulting, training, and resources. Meanwhile, the Wisconsin Economic Development Corporation (WEDC) supports entrepreneurs with financial assistance, mentorship, and more.

However, if you’re starting or building a company, you may still need loans to achieve your goals. So, read on to find out how to get funding for your Wisconsin-based business.

How to Apply for a Small Business Loan in Wisconsin

Getting funding at the right time can help small business owners build successful companies. Make the loan application process easier with these steps.

1. Understand Your Eligibility and Loan Criteria

The first step is to know why you need to take out a loan. Understanding your business needs and goals can help determine how much to request. In addition, knowing the reason can lead you to identify the right type of loan and lender for you.

Since you have to convince loan providers to lend to you, be aware of the factors that could affect your eligibility. The main criteria that lenders look for include your credit score, time in business, and your company’s annual revenue.

2. Prepare Business and Financial Information

Your documents should do the talking to get loan providers to lend you money. You can strengthen your application with a business plan that includes how you’ll use the loan amount and how you plan to pay it back.

As a starting point, make sure you have the following papers handy:

  • Identification documents, e.g., passport, driver’s license, employer identification number (EIN), or Social Security number (SSN)
  • Business licenses, Articles of Organization, or Articles of Incorporation
  • Business income tax returns
  • Personal income tax returns
  • Business financial statements, e.g., balance sheets, cash flow statements, and profit & loss (P&L) statements
  • Collateral documents if you plan to secure your loan with a personal or business asset

3. Identify the Right Loan Type and Lender

There’s more work to do when picking the right loan and lender. First, check if you meet their requirements.

Traditional lenders like banks and credit unions typically have stricter requirements than online lenders. For instance, banks usually ask for higher annual revenue than online lenders.

At Clarify Capital, you can get approved for a business loan if you’ve been operational for at least six months. We also recommend generating at least $10,000 of income each month. When you work with Clarify, we research for you. The best thing is we have a marketplace of more than 75 lenders, so you get the best rates.

4. Understand the Loan Terms and Conditions

When shopping around, compare loan terms and conditions. Aside from interest rates and repayment periods, these impact the application process and how you can manage your payments.

So, pay attention to collateral and guarantee requirements. Additionally, make sure to ask about their policies on fees and penalties.

Then, to be sure it’s a good fit, read reviews to know about the lender’s service quality. Do they specialize in the type of loan you’re looking for? How do they treat their customers? Do they offer advisory services?

Apply for a loan through Clarify Capital today. We strive to make the process easy and transparent. That’s why you get matched with a Clarify adviser who will help you choose the best loan to suit your business needs.

5. Submit Loan Application and Get Funding

Applying with Clarify is quick and easy. Fill out the online application or call us directly. If you meet the requirements, you can get approved the same day.

After you get confirmation of approval, you can expect to receive your funding in one to two business days.

5 Small Business Loan Options in Wisconsin

There are different loan options, but some loans are easier to qualify for than others. Whether you’re a startup in Madison or a thriving business in Milwaukee, here are some small business loan options through Clarify Capital.

U.S. Small Business Administration (SBA) Loan

The U.S. Small Business Administration offers resources to small business owners. You can access business resources like loans, grant programs, webinars, and affordable training through the agency.

SBA loans usually offer the lowest interest rates because the SBA partially guarantees them. If a borrower fails to pay, the lender still gets paid up to 85% of the unpaid balance. Entrepreneurs can borrow through SBA lenders and nonprofits. You can choose from different loan programs, including 7(a) loans, SBA 504 loans, and Microloans.

Short-Term Loan

Short-term loans are popular with entrepreneurs because they’re straightforward. Business owners receive the loan amount upfront. Then, they repay the loan plus interest in fixed payments over a term ranging from six months to two years.

Working Capital Loan

Working capital loans are a business financing option designed to fund the everyday operations of a company. Cash flow gaps happen for many reasons, like delayed customer payments, slow sales, or equipment failure. Businesses use working capital loans to pay rent, utilities, or payroll.

Business Line of Credit

A business line of credit works like a credit card, but you get better interest rates and higher credit limits. It’s best for business owners looking for a flexible financing solution because they get access to the cash they can draw as needed.

Invoice Factoring

Invoice factoring lets entrepreneurs borrow money with unpaid invoices as collateral. You receive a percentage of your total invoice value for a fee. Then, you turn over your accounts receivables to the factoring company, and they collect from your customers on your behalf. The lender takes their fee, and any remaining amount is paid to you.

Invoice factoring offers a good financing solution to business owners who sell on credit and offer long payment terms.

Wisconsin Small Business Loan FAQs

If you’re starting or growing a business in the state of Wisconsin, here’s what you need to know about small business loans in your area.

Can I Get a Wisconsin Business Loan With a 500 Credit Score?

You can get a business loan with a 500 credit score, but with some difficulty. Your credit score represents your creditworthiness to lenders. That’s why the higher your credit score, the better interest rates and terms you can get. However, some business owners can be approved with a credit rating as low as 450.

At Clarify, we recommend a minimum credit score of 550 to qualify for loans. If you’re unsure whether you can get approved for a loan because of your credit score, speak to a Clarify adviser to explore your options.

What Type of Loan Can I Get for My Wisconsin Small Business?

The type of loan you can get depends on your business needs and the eligibility requirements you can meet. There are different types of small business loans, and some are easier to qualify for than others.

Rest assured that you can find one that suits your situation and goals. When you work with Clarify, your adviser will help you choose the best financing option.

Are Small Business Loans Easy to Get?

You can get small business loans easily, but you have to do the work. Understand your business needs and make sure you have your documents handy. Then, research lenders and learn about loan terms and conditions.

If you want to skip the hassle, call Clarify today to discover financing options available to you.

Fund Your Wisconsin Small Business With Help From Clarify Capital

Let Clarify Capital help you get the funding you need to grow and build a successful business in Wisconsin. Skip the work of researching lenders and loans.

With Clarify, your adviser will walk you through the whole process. They’ll help you choose the best solution for your financing needs. Apply with Clarify Capital today!

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