Small businesses in Milwaukee and Wisconsin have been experiencing a boom in small business loans over the last year, despite whispers of economic concerns. In October 2007, the Business Journal of Milwaukee reported Milwaukee area businesses received 72 Small Business Administration loans compared to only 38 in October 2006. (http://www.wisconsinsbdc.org/)
Starting or expanding a small business is challenging and one of your most important decisions is whether to lease or purchase. The answer to which route you choose is based on a variety of considerations such as available cash flow, monthly expenses vs. fixed capital outlay, budget considerations, and obsolescence.
Deciding to purchase using small business loans
Getting a small business loan is a great way to finance your business needs. You can ease the process by first making sure you know as much as possible about all the options available to you, and how to successfully apply for your small business loans or financing.
Small business loans through the Small Business Administration
There are several local resources for beginning the application process for a small business loan in Milwaukee or Wisconsin. The Small Business Administration (SBA) is an independent agency of the Federal Government, established by Congress to advise and help the nation’s small businesses. The two Wisconsin offices - Milwaukee and Madison - are listed below.
Small Business Association
MadisonDistrict Office
740 Regent Street, Suite 100
Madison, WI 53715
(608) 441-5263 Fax (608) 441-5541
Small Business Association
Milwaukee District Office
310 West Wisconsin Ave. Room 400
Milwaukee, WI 53203
(414) 297-3941 Fax (414) 297-1377
It is important to remember that the Small Business Association does NOT give out grants (money that does not need to be repaid). However, several types of small business loans are available through the Small Business Association in Wisconsin. This small business loan provider gives special consideration to minority and/or women-owned businesses and often offers loans to businesses that local banks turn down for funding. Choosing which small business loan is appropriate for you can be a daunting task, made easier thanks to a Milwaukee-specific user friendly guide of loan products.
When applying for your small business loan, remember to check the fine print to ensure that you meet the qualifications for the loan type you apply for, or you may face a lot more red tape, corrections, or other obstacles.
Deciding to lease
If these loan options do not fit the needs of your specific business, consider leasing. Leasing your machinery, office equipment and trailers, allows you to conserve more cash for your business since there are no small business loan down payments, and also may give you greater tax benefits.
There are many reasons why you as a business owner might choose to lease. For one, leasing conserves credit lines. Because money is not borrowed when you lease, your existing credit lines are not affected and are still available for your company’s growth. Leasing also conserves on capital by providing an alternate source of financing that is suited to depreciating assets. Bank lines are perfect for keeping on top of the day-to-day operations of a business. Long term equipment acquisitions are a different matter.
There are also important tax benefits to consider. Because lease payments are made from before tax earnings rather than with after-tax earnings, depending on the structure of the lease, 100 percent of your lease payments may be fully deductible.
Leasing can also be a great solution to your budget limitations. Maybe you just don’t have the budget and you’re going to have to choose quality over quantity. Through leasing you get both quality and quantity – leasing allows you to get what you really want, instead of accepting a lesser piece of equipment that just meets requirements, but doesn’t leave much room for growth.
And if your budget is conservative, leasing offers flexible, customized lease paying schedules so that you can pay for your equipment as it pays for itself – through use!
Whichever financing option you choose – small business loans or leasing – investigate resources in your own back door first. Local lenders and financing resources often provide extra opportunities not afforded by larger, national lenders or suppliers.
Being aware of the resources available for obtaining small business loans and financing in Milwaukee or Wisconsin will arm you with the best tool for meeting the challenge of getting your small business up and going, and that’s “knowledge.”
1/29/08
Contact Advantage Leasing for your small business leasing needs right here in Milwaukee, Wisconsin |
