Find the Best Small Business Loans in Milwaukee, WI

How to get a business loan in Milwaukee

Milwaukee is a popular place for those starting a business. There are a variety of state, local and federal programs designed to help companies in the region, and Entrepreneur magazine ranks Milwaukee as one of the best urban areas for entrepreneurs.

If you’re planning to start a new business or expand an existing one, you may need a business loan to secure the necessary funding. There are many types of loans, and choosing the best one for your situation can be confusing. The most common business loans in Milwaukee are:

• Term loans are the most common types of business loans. These loans provide upfront cash that is paid back over a predetermined period of time. They can be short-term or long-term loans.
• Business lines of credit are similar to credit cards. They allow businesses to access funding up to a specified amount, and the company only pays interest on the amount used.
• Invoice financing is ideal for companies that need a quick infusion of cash. The company’s outstanding invoices serve as collateral for the loan.
• Merchant cash advances give a company cash upfront that is repaid by withholding a certain percentage of the company’s daily credit and debit card sales.
• Equipment loans are used to purchase needed equipment. These loans may require a down payment, and the purchased equipment serves as collateral for the loan.
• U.S. Small Business Administration (SBA) loans are offered from third-party lenders and partially secured by the U.S. Small Business Administration. These are generally long-term loans with a rigorous application process.

Even if you have a bad credit history, you may be able to receive a loan from an alternative lender in Milwaukee. Alternative lenders often have online applications for business loans and focus on a company’s business plan and viability more than credit history or rating.

You’ll need to decide between a fixed-rate or a variable-rate loan. Most loans will have monthly installments, but your interest rate can fluctuate with the market if it’s a variable-rate loan, making fixed-rate loans favorable for most business owners because of its consistency. However, a variable-rate loan can benefit your company by having a lower rate during favorable market conditions.

Most lenders in Milwaukee charge fees on your loan, but the type and amount may be different. When comparing loans, look for origination fees, underwriting fees and closing fees, all of which can affect how much funding you receive from your loan. The total cost of fees should be between 1 and 5 percent of the amount you’re borrowing.