Finance Your Business
 > Get a Loan
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What is debt financing?
Debt financing is money that is borrowed and expected to be repaid over a specified period of time.
What is a lender looking for?
Lenders look for three major things when determining whether or not to loan you money:
- Cash Flow - Previous profitability of the business and/or industry and market information that ‘proves’ 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 will repay new debt and obligations.
What are my options?
- Traditional BANK lenders: Many banks use special loan programs such as - Small Business Administration Loan Guarantee Programs, State of Illinois loan programs, City of Chicago loan programs
- Microlenders in the Chicago area
- Non-bank financing, such as Accounts Receivable financing programs
Next Steps:
1. Read Can I Qualify for a Loan? in tools section.
2. Review the Business Plan Outline and make sure that your business plan is answering the correct questions.
3. Read Debt Vs. Equity handout in Tools section.
4. Attend the WBDC Finance Training Seminars such as Take the Mystery out of Obtaining Financing for Your Business.
5. Contact DuWarn Porter, a WBDC Finance Specialist, at (312) 853-3477 ext. 56 to make arrangements for submitting your business plan. Please refer to the sample cash flow and loan package checklist to identify the documents that will need to be part of your loan package.
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