Financing
We’re proud of our record of helping WBDC clients procure on average $3 million per year in financing. Our Finance Program assists aspiring business owners with all 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.
The program is open to clients who've completed the first draft of their business plan. 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
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 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 6-week series to learn how to establish your business.. Please click here for complete workshop descriptions and registration.
“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” – We're experts, as each year we have helped secure $3 million in loans for our clients. This workshop spells out the criteria lenders use to evaluate your business. 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 package loans. To schedule an appointment, please contact Eva Brown at ebrown@wbdc.org
NEXT STEPS
1. Download the Debt vs. Equity flyer in the Tools Section to self-determine what type of financing is best
for you.
2. Attend the WBDC Finance Training Seminars such as Take The Mystery Out Of Obtaining
Financing For Your Business.
3. If you haven't yet prepared a Business Plan, go to Develop Your Business Plan to get instruction
on this necessary First Step.
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 major things to decide if they should 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 will 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.
NEXT STEPS:
- Read "Can I Qualify for a Loan?" in the Tools section.
- Review the Business Plan Outline and confirm your business plan answers its questions.
- Read the Debt Vs. Equity handout in Tools section.
- Attend WBDC Finance Training Seminars, such as Take the Mystery Out of Obtaining Financing for Your Business.
- Contact WBDC Finance Counselor Eva Brown at ebrown@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
What is equity financing?
Equity financing offers capital to high-growth firms (companies whose values increase at least 20% to 30% per year) where repayment is not expected in the short term. In exchange for offering this high-risk capital, the business that receives this type of financing offers partial ownership and control to these investors.
WHAT IS AN INVESTOR LOOKING FOR?
Equity providers look for several characteristics in the companies which they invest, 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 are barriers 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 beta test and develop the initial market.
- Venture Capital: To grow the business into new markets.
WBDC SERVICES
- A review and critique of your business plan and executive summary.
- Coaching teams comprised of investors and service providers who help you develop your business model and refine a presentation for prospective investors.
NEXT STEPS:
- Read the material on obtaining equity available for downloading.
- If you have a business plan and an executive summary, e-mail them to Eva Brown at ebrown@wbdc.org for our initial review and comments.
