Wisconsin Business Loans

A business line of credit is a flexible loan arrangement that allows you to borrow money up to a predetermined credit limit. Think of it as a credit card for your business but with better terms. The key advantage is flexibility; you can borrow what you need, when you need it, and only pay interest on the amount you use.

Businesses commonly use lines of credit to manage cash flow, cover short-term expenses, seize growth opportunities, or deal with unexpected emergencies. Unlike traditional loans, where you receive a lump sum, a line of credit gives you ongoing access to funds as long as you don't exceed your credit limit. It's a handy financial tool that provides quick access to capital without a new loan application each time you need funds.

An SBA loan, or Small Business Administration loan, is a specialized type designed to support small businesses in the United States. The SBA doesn't directly provide loans but guarantees a portion of the loan made by approved an SBA lender, such as banks or credit unions. This guarantee reduces the risk for lenders, making it easier for small businesses to access financing.

SBA loans come in various forms, including 7(a) loans for general purposes, CDC/504 loans for real estate and equipment, SBA Express Loan program, and microloans for small capital needs. These loans offer more favorable terms, lower interest rates, and more flexible eligibility requirements than traditional business loans.

An asset-based loan is a type of financing where you use your business assets, such as accounts receivable, inventory, or equipment, as collateral to secure a loan. In essence, it's a borrowing arrangement where the value of the company's assets determines the loan amount. These loans are particularly useful for businesses with substantial assets but limited cash flow or credit history.

Lenders assess the value of the assets and extend credit based on that valuation. Asset-based loans are often used for working capital needs, expansion, or to manage cash flow. If the borrower fails to repay, the lender can seize and sell the collateral assets to recover the loan amount.

Invoice financing, or accounts receivable financing, is where you receive immediate funds by selling your unpaid invoices to a lender or a financial institution.

Instead of waiting for customers to pay their invoices, you can access a significant portion of the invoice value upfront. The lender typically provides a percentage of the invoice amount, and once the customer pays the invoice, the remaining balance, minus a fee, is released to the business.

Invoice financing helps companies improve cash flow, meet immediate financial needs, and reduce the time spent waiting for payments, making it a valuable tool for managing working capital.

A business term loan is a straightforward business loan with a fixed loan amount, a predetermined interest rate, and a set repayment term. You’ll receive the loan amount upfront and repay it over a specified period, typically one to five years or more.

These loans are commonly used for significant investments, such as buying equipment, expanding operations, or launching new projects. The fixed terms and predictable payments make budgeting and planning for the future easier. Business term loans are a popular choice for long-term financing needs.

Equipment financing is a specialized business financing that allows you to acquire essential equipment and machinery without paying the full purchase price upfront. Instead, the business borrows the funds needed to buy the equipment and makes regular monthly payments over a specified period. The equipment often serves as collateral for the loan, reducing the lender's risk.

This type of financing is beneficial for businesses that rely on specific equipment, such as manufacturing, construction, or healthcare companies. It helps them access the necessary tools to operate and grow while preserving their working capital for other needs.

Purchase order financing is where you get the necessary funds to fulfill your customer’s purchase order for goods or products. This type of financing is typically used by businesses that lack the capital to purchase or manufacture the required inventory to meet customer demand.

You secure a purchase order loan instead of turning down orders or delaying delivery. The lender provides the funds needed to fulfill the order, and once the goods are delivered and the customer pays, you repay the lender along with fees. Purchase order financing helps you fulfill orders and maintain customer relationships by ensuring timely deliveries.

Inventory financing is a type of business financing tailored for inventory purchases. It often comes as a line of credit or term loan designed to cover the cost of goods. What sets it apart is that many inventory loans can fund up to 100% of the inventory's cost. This type of financing is most suitable for businesses with inventory that moves quickly, either because it's presold or easy to sell. It gives you enough inventory to meet customer demand without tying up all your available capital, helping you optimize cash flow and grow your operations efficiently.

A bridge loan is designed to "bridge" or fill anticipated cash flow gaps. While any existing business can use a bridge loan, it's most effective when it has access to a line of credit to manage cash flow needs. Bridge loans offer short-term financing solutions to cover expenses or investments until more permanent funding becomes available. They are often used during transitional periods, such as waiting for long-term loan approval, selling assets, or waiting for customer payment. These loans are a flexible tool for businesses, helping them maintain operations and seize opportunities without being hindered by temporary financial constraints.