Microfinance can offer Wisconsin small businesses much-needed access to capital. By providing information and resources, state governments and other programs are helping businesses succeed through careful financial planning that could make the difference between success or failure. Learn more about microfinance in Wisconsin here.
What is Microfinance?
Microfinance is the practice of providing access to financial services, such as banking and credit, to businesses that may not qualify for traditional forms of financing. This type of service can be especially beneficial for entrepreneurs who are working on a smaller scale with limited resources. Microfinance lenders provide loans and other services in amounts much lower than those offered by traditional banks and financial institutions, making them accessible and beneficial to small business owners.
The state of Wisconsin provides certain guidelines to regulate the microfinance industry in the state. All lenders must abide by these regulations, which include consumer protection laws that are designed to safeguard borrowers from unfair and possibly predatory practices. The law also requires licensed microfinance lenders to provide consumers with information about costs, terms, and conditions of the loans they offer. Additionally, a borrower has the right to cancel a loan within three days of signing a contract without having to provide any explanation for doing so.
Opportunities for Access to Capital in Wisconsin.
Wisconsin provides many resources for entrepreneurs and borrowers seeking access to capital. The state boasts a strong network of microfinance lenders, credit unions, banks, and other financing organizations that provide a variety of loan types including peer-to-peer loans, unsecured small business loans, secured business loans, and more. Additionally, the state offers numerous grants and incentives for businesses in the form of tax credits, deductions, and funding programs designed to support small businesses.Wisconsin Microfinance at a Glance
Financial Training and Education Resources in Wisconsin.
The state of Wisconsin provides many financial training and education resources to help aspiring entrepreneurs and small business owners become better equipped to manage their finances. The Wisconsin Small Business Development Center (SBDC) offers a range of programs focused on helping businesses secure capital, create sustainable business plans, access funding sources, and more. Additionally, the Wisconsin Loan Origination Network (Woln) helps connect borrowers with lenders in the state that offer microfinance loan products.Wisconsin Microfinance at a Glance
Challenges Facing the Wisconsin Microfinance Industry.
Despite the resources available to Wisconsin entrepreneurs and small business owners, one of the biggest challenges facing the microfinance industry in the state is a lack of access to capital for small businesses and start-ups. There are a number of reasons why this can be challenging, such as perceptions about risk among larger banks or even credit requirements that may be too high for some businesses. However, by partnering with a trusted lender like Woln or utilizing other resources available in Wisconsin, aspiring business owners can find a way to access the capital they need.