Financing
We’re proud of our record of each year helping WBDC's entrepreneur clients procure more than $3 million in financing. Our Finance Program assists business owners with all of the financial aspects of running a business, including understanding financial statements, compiling financial projections with specific estimates for a cash flow statement, developing a financial strategy, preparing a loan package and pre- and post-loan technical assistance.
Financial assistance is available in both English and Spanish. Because it’s difficult to find financing for businesses that are losing money or not gaining market share, we recommend you first read`"Can I Qualify for a Loan?"
Programs/Services
WBDC'S SMALL BUSINESS LOAN PROGRAM.
WORKSHOPS
Targeted Workshops and Seminars – The WBDC offers financial courses within its core entrepreneurial training workshops, as well as individual workshops.
“Wine and Cheese Introduction to the WBDC” – This complimentary session helps aspiring and established business owners clarify their needs while learning more about WBDC resources, including our Finance Program.
“JumpStart” –
Prospective entrepreneurs and business start-ups should enroll in this 5-week series to learn how to strengthen your business.. Please click here for complete workshop descriptions.
“FastTrac Planning” –
This 12-week series equips prospective emerging and established entrepreneurs with a vision for success and an in-depth, action-oriented business plan which helps to steer growth and secure capital. Please click here for complete workshop descriptions
“Take the Mystery Out of Financing for your Business” –
We're experts, as each year we have helped round up $3 million in loans for our clients. This workshop spells out the criteria lenders use to evaluate your business. Also, we will teach you how to prepare a financial package that will motivate lenders to say "yes". Financial Counseling
Business Counseling - WBDC business counselors meet with clients individually to work through financial issues, discuss and develop financial strategies, and to package loans. For an appointment, please contact Eva Brown at ebrown@wbdc.org or Teresa Prim at tprim@wbdc.org
Specialized Assistance
Referrals to Specialized Business Professionals – The WBDC has assembled a group of experienced professionals in a variety of fields, including accountants, lawyers, graphic designers, and sales consultants. For referral information, please contact the WBDC at 312.853.3477 X 0 or wbdc@wbdc.org
Get a Loan
WHAT IS DEBT FINANCING?
Debt financing is borrowed money expected to be repaid over a specified period of time.
WHAT IS A LENDER LOOKING FOR?
Lenders look for three things when determining whether or not to loan you money:
- Cash Flow - Previous profitability of your business and its industry and market information that predicts future profitability.
- Collateral - a second source of repayment, most often personal or business assets.
- Credit History –Your personal credit is a strong indicator of how likely you'll repay new debt and obligations.
WHAT ARE MY OPTIONS?
- Traditional BANK lenders: Many banks use special loan programs such as the Small Business Administration
- Loan Guarantee Programs, the State of Illinois loan programs, and the City of Chicago loan programs
- Microlenders in the Chicago area
- Non-bank financing, such as Accounts Receivable financing programs (Factoring), and PO Financing.
(
See Glossary for definitions of these and other business terms.) and equity financing.
NEXT STEPS:
- Read Can I Qualify for a Loan? in the Tools section.
- Review the Business Plan Outline and confirm your business plan correctly answers the questions.
- Read the Debt Vs. Equity handout in the Tools section.
- Attend WBDC Finance Training Seminars, such as Take the Mystery Out of Obtaining Financing.
- Contact WBDC Finance Counselor Eva Brown at ebrown@wbdc.org or Teresa Prim at tprim@wbdc.org to submit your business plan.
Please refer to the sample cash flow and loan package checklist to identify necessary documents for your loan package.
Find an Investor
FIND AN INVESTOR
WHAT IS EQUITY FINANCING?
Equity financing offers capital to high-growth firms (companies whose values increase at least 20% to 30% per year) that are ‘patient’ (repayment is not expected in the short term). In exchange for offering this high-risk capital, the business receiving this type of financing may offer partial ownership and control of her business to these investors.
WHAT IS AN INVESTOR LOOKING FOR?
Equity providers look for several characteristics in the companies they invest in, including:
- An experienced management team – with a background in the same industry or as an entrepreneur.
- Potential high growth in revenue, size, and market share,
- Proprietary technology, patents, or other business processes, tools, or systems that only your business offers and is a barrier to competitors.
- An exit strategy (e.g., going public or acquisition by another corporation) within a reasonable time frame.
WHAT ARE MY INVESTOR OPTIONS?
- Friends & Family: For the initial capital to develop the product/service.
- Angel Investors: To develop the initial market.
- Venture Capital: To grow the business into new markets.
WBDC SERVICES
- Review and critique the business plan and executive summary.
- Coaching Teams comprised of investors and service providers who help a company develop their business model and refine their presentation for prospective investors.
NEXT STEPS:
- Read the material on obtaining equity that's available for downloading.
- If you have a business plan and an executive summary, e-mail them to Eva Brown at ebrown@wbdc.org or Teresa Prim at tprim@wbdc.org for initial review and comments. If you don’t yet have a business plan, go to Develop Your Business Plan.
