February 28, 2022
How to Get a Small Business Loan in Wyoming
If you’re a small business owner in Wyoming or hope to become one, small business loans should be on your radar. In this post, we’ll cover everything you need to know about small business loans in Wyoming.
Uses for Wyoming Business Loans
Small business loans in Wyoming can help you cover a variety of business-related expenses. These might include:- Commercial Real Estate
- Equipment
- Inventory
- Payroll
- Marketing
- Insurance
- Expansion Costs
Types of Small Business Loans in Wyoming
Small business loans in Wyoming vary from lender to lender, which is why it’s wise to shop around and explore all your options. Note that the lender and loan you choose will determine eligibility requirements and funding time.Term Loans
Term loans are available through banks, credit unions, and online lenders. Upon approval, you’ll receive a sum of money all at once. You’ll repay your loan over time via fixed monthly payments, ranging from a few years to several years or even longer. Most term loans offer great rates and favorable terms.SBA Loans
Even though the U.S. Small Business Administration (SBA) backs SBA loans, you’ll need to find an SBA-approved lender to apply for one and receive funding. While the application process is more involved than other options, the benefits of SBA loans are low rates and lengthy terms of up to 10 years or 25 years for commercial real estate construction or acquisition.Microloans
Microloans are small loans of up to $50,000. If you’re an entrepreneur and can’t qualify for traditional loans, microloans may be helpful. They’re usually offered by nonprofit organizations or government entities like the SBA or USDA. Through the SBA microloan program, you may lock in a competitive rate and loan terms of up to 7 years.Equipment Loans
Every business depends on equipment like computers and phone lines to operate; that's where equipment loans come in. You can use equipment loan proceeds to cover the cost of new or used equipment. Since they’re secured to the equipment itself, you’ll likely get approved, even with bad credit. Just keep in mind that you’ll only be able to use the funds toward your equipment.Line of Credit
Similar to a credit card, a business line of credit is a flexible additional business financing option. Once you receive it, you’ll be able to access funds whenever you need up to your credit limit. While you can use a line of credit to pay for anything, it’s especially useful for short-term capital, inventory purchase, supplier payments, or emergency expenses.Merchant Cash Advance
A merchant cash advance (MCA) offers a lump sum of cash in exchange for a percentage of your future sales, typically from debit and credit cards. Instead of interest rates, MCAs charge factor rates, which may be confusing to understand. Most lenders will require you to repay them daily or weekly over a period of 3 to 12 months.Invoice Factoring
Invoice factoring makes it easy to turn your accounts receivables into fast cash. A factoring company may advance you up to 80% or 90% of your unpaid invoices. While invoice factoring is convenient, it can be expensive due to interest rates and common fees like late payment fees, returned check fees, and wire transfer fees.Useful Resources for Wyoming Business Owners
If you own a small business in the state of Wyoming, it’s a good idea to keep these resources on your radar.- Wyoming Small Business Development Center (SBDC): The University of Wyoming, the Wyoming Business Council, and SBA partner to offer Wyoming SBDC. You can receive market research support to launch your venture, pursue financial assistance, and learn how to expand through government contracting.
- IMPACT 307: IMPACT 307 is a network of incubators in Wyoming with a mission to strengthen entrepreneurship in Wyoming. It offers business mentorship programs and start-up challenges.
- Wyoming Business Council: The Wyoming Business Council promotes small business growth in the state. Its website contains answers to frequently asked questions, such as “how do I register my business” and “what permitting/licensing do I need.”