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Find the Best Business Loan Companies in Madison, WI

Downtown Madison and suburbs like Fitchburg and Monona are popular areas for new restaurants, health and beauty stores and charming sidewalk boutiques. If you’re thinking about becoming part of the small business community in Madison, business loans can help you get started. Madison.com has partnered with ConsumerAffairs to create this guide by comparing loan options and customer reviews of 25 businesses and choosing eight favorites from the top commercial lending companies in Madison.

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Types of business loans in Madison

madison skyline

Not all business loans are the same. Some loans are designed specifically to help you pay for equipment and machinery, while others are made to help you buy real estate or fund construction projects. Some of the most common types of business loans in Madison are the following:

  • Equipment financing: Equipment financing makes it possible for business owners to purchase heavy machinery, vehicles or industry-specific equipment or technology. This money can be used to repair old equipment or buy new equipment without interrupting the cash flow of your business.
  • Merchant cash advances: A merchant cash advance is a way to get quick cash when you need it. Unlike other loans or cash advances, repayment of the advance is based on future sales. So when your business is doing well and credit card sales are up, you’ll be paying more toward the repayment of your cash advance. Merchant cash advances are easier to qualify for with bad credit, but compared with business installment loans, the loan amounts are smaller, the fees are higher and the terms are shorter.
  • Startup business loans: There are many ways for Madison entrepreneurs to fund their own businesses. A startup loan is designed specifically to help a new business. Different startup business loans have different requirements for qualification.
  • Business lines of credit: A business line of credit allows a business owner to borrow money when they need it, up to a limit, and helps keep expenses organized. Business lines of credit generally have higher limits and lower interest rates than business credit cards.
  • SBA loans: SBA loans are backed by the U.S. Small Business Administration. These loans typically have an interest rate between 6% and 10%, and eligibility depends on your credit, how long you’ve been in business and your current debt-to-income ratio.
  • Business real estate financing: If your Madison-based business requires a physical location, real estate financing helps with the purchase of an existing property or new construction. Term lengths on commercial real estate loans are between five and 20 years. These loans are used to buy office spaces, retail shopping centers, warehouses or apartment complexes for commercial use.

How to get a business loan in Madison

Getting a business loan to open up a restaurant on State Street near the Capitol will look different from getting a loan to start a dairy farm in Dane County.

The application process varies depending on the type of business loan and the lender, but all lenders will need information about your financial status, business plan and credit history to determine if you qualify. Some documents you will be asked to submit during your application process include:

  • Bank statements
  • Tax returns
  • Business plans
  • Financial statements

Consider checking your individual and business credit history for accuracy and ways to improve your credit score before applying for a business loan in Madison. Shop around at multiple lenders to find a loan with the most favorable terms for your situation.

Madison business loan FAQ

Who is eligible for small business loans?

To be eligible for a 7(a) loan from the Small Business Administration — the primary type of small business loan guaranteed by the federal government — a business must operate for profit, do business in the U.S. or a U.S. territory, have owner equity to invest and use other financial resources before asking for assistance.

What is the typical interest rate on a business loan?

Different loans have different interest rates, but the average interest rate for an SBA loan is 6% to 10%. Interest rates for cash advances can be anywhere from 20% to 250%, and traditional bank loans have interest rates from 4% to 13%.

How do business loans work?

Business loans are designed to give entrepreneurs and small business owners the funds they need to cover business-specific expenses. This money can be used toward buying commercial property, supplies or equipment. It can also be used for payroll, inventory or to pay existing debts.

What business development resources exist in Madison?

For assistance with business planning, marketing workshops, online and in-person classes, networking events and financing, Madison business owners should check out the following resources:

  • Greater Madison Chamber of Commerce, which facilitates networking and training events and provides opportunities for businesses to connect with the community
  • The Madison chapter of SCORE, which offers free mentoring and education for small business owners, and workshops on marketing, working remotely and finance
  • Wisconsin Small Business Development Center, which provides consulting, education, referrals and networking connections, and a variety of tools and resources to help growing businesses
  • WWBIC, which offers classes geared toward starting, managing, and growing a business for female business owners

Madison business loan company information

Accredited Partner

SmartBiz Loans

SmartBiz Loans offers term loans and SBA loans to qualified applicants. These loans can be used for various business expenses. The company’s advanced matching technology matches business owners with trusted banks that provide funds. SmartBiz Loans offers loans ranging from $30,000 to $5 million and repayment terms of six months to 25 years.

SmartBiz Loans (866) 283-8726
Accredited Partner

National Business Capital & Services

National Business Capital & Services is an online marketplace for many types of small business loans. Applying takes only minutes, and you are connected with a network of 75-plus vendors that can help find the right funding. Business owners can apply for a loan up to $5 million with National Business Capital & Services.

National Business Capital & Services

Currency

Currency offers multiple funding options for entrepreneurs in need of equipment financing. You can get funding for specialty equipment and heavy machinery. Currency offers loans up to $500,000. The company also offers programs with 0% interest.

Currency

Oak Bank

Oak Bank offers business loans and lines of credit. These loans can be used for real estate purchases, new construction, working capital, business expansion or equipment financing. The lines of credit allow business owners to only borrow the money they need and pay interest only on what’s taken out. The company offers short-, intermediate- and long-term commercial loan options. Oak Bank is located at 5951 McKee Road, Ste. 100, Fitchburg, WI 53719.

Oak Bank

Capitol Bank

Capitol Bank’s term loans can be used for equipment leasing, vehicles, renovations or new building. The company also provides business lines of credit and SBA loans. It offers business term loans with a maximum loan amount of $350,000. Capitol Bank has two nearby locations, including one at 710 N. High Point Road, Madison, WI 53717.

Capitol Bank

IncredibleBank

IncredibleBank has financing options for growing, expanding and starting a business in Madison. The company’s business term loans range from $2,000 to $5 million. Repayment terms are typically up to 10 years. The company also offers commercial construction and real estate loans, SBA loans and business lines of credit. IncredibleBank is located at 8329 Murphy Drive, Middleton, WI 53562.

IncredibleBank

Park Bank

Park Bank offers commercial real estate loans, construction loans, lines of credit and term loans. The company’s business credit cards have no annual fee, and the bonus points earned can be used toward business expenses. Park Bank has several locations in and around Madison, including one at 33 E. Main St., Madison, WI 53703.

Park Bank

Town Bank

Town Bank offers multiple SBA loans and lines of credit. Business credit cards come with tools and programs to help business owners track their expenses, monitor spending and assist with tax filing. Town Bank has multiple locations in Wisconsin, including one at 10 W. Mifflin St., Madison, WI 53703.

Town Bank