Wintrust is a financial holding company that operates fifteen chartered commercial banks in Southern Wisconsin and Northern Illinois. Wintrust Financial is one of the largest banking institutes in America and is listed on the Nasdaq Global Select Market.
Wintrust financial also provides a large array of business loans, each comes with a specific purpose, but they are all designed to aid businesses. Below we have discussed the three types of SBA loans provided by Wintrust financial.
17.SBA 7(a) Loan
- The most popular SBA loan
- Longer Amortization
- Amount: 5 million dollars
- Purpose: Helps small businesses purchase inventory, equipment, and property and enables them to expand.
18.SBA Express Line of Credit
- Amount: 350,000 to 500,000 dollars
- Purpose: Offers support to export businesses that are looking to grow and compete in markets abroad
- Lower down payments on fixed assets
19.SBA 504 Loan
- Lower down payments
- Amount: 10 million dollars
- Purpose: Provides financing for long-term purposes at a fixed rate to fund business expansions. The loans also support economic development so that more jobs are created.
Types of Loans offered by Wintrust Financial
1. SBA 7(a) Loan
- The most popular SBA loan
- Longer Amortization
- Amount: 5 million dollars
- Purpose: Helps small businesses purchase inventory, equipment, and property and enables them to expand.
2. SBA Express Line of Credit
- Amount: 350,000 to 500,000 dollars
- Purpose: Offers support to export businesses that are looking to grow and compete in markets abroad
- Lower down payments on fixed assets
3. SBA 504 Loan
- Lower down payments
- Amount: 10 million dollars
- Purpose: Provides financing for long-term purposes at a fixed rate to fund business expansions. The loans also support economic development so that more jobs are created.
20.Wintrust Business Credit
With the unstable economic conditions currently present in the market, businesses need to hire experienced lenders with a deep understanding of the business. Wintrust business credit is delivered through Wintrust commercial bank, and it provides businesses with revolving lines of credit on inventory and accounts receivable.
21.Commercial Real Estate
Wintrust financial is with you from the initial planning to the final stages of loan approval. The purpose of commercial real estate is to acquire businesses, refinance, and renovate existing businesses, and come with long and flexible terms.
- Buy or refinance a commercial building.
- Value-added projects
- Bridge loans
- Permanent loans
- Rehab loans
- Construction loans
22.Commercial Financing
Wintrust financial is a specialist when it comes to financing fixed assets such as real estate, equipment, and plants.
- Construction
- Transportation
- Technology
- Manufacturing equipment
- Medical
- Healthcare
- Energy
- Materials
- Mining
- Aviation
- Food processing
- Waste recycling
Wintrust Financial Interests, Fees, and Loan Options
28.SBA (7A)
- Interest Rate: 4.25 % for < 25,000 dollars, 3.25 % for 25,0001 to 50,000 dollars, 2.25 % for > 50,0001
- Fees: 0.25 % (short-term loan) 3.5 % (1000,000 dollars)
29.SBA/CDC 504 Loan Program
- Interest Rate: 2.4 % (Ten-year term), 2.35 % (25-year term), 2.41 % (also for 25-year term)
- Fees: 0.25 % (Loan servicing) 0.5 % (SBA Guarantee)
30.SBA Express Lines of Credit
- Interest Rates: 11.25 % (< 25,000 dollar), 10.25 % (25,0001 to 50,000 dollars), 9.25 % (50,001 – 250,000 dollars) 8.25 % (> 250,000 dollars)
- Fees: <150,000 dollars (2 % guaranteed portion of the loan) 150,000 to 700,000 (3 % guaranteed portion of the loan)
31.Wintrust Business Credit
- Interest Rate: Not specified
- Fees: Not Specified
32.Commercial Real Estate
- Interest Rate: Not specified
- Fees: Not Specified
33.Commercial Financing
- Interest Rate: Not specified
- Fees: Not Specified
What Lending Criteria does Wintrust Financial Have?
Below is the basic lending criteria that all the banks follow:
- Credit Score
- Annual Revenue
- Business Plan
- Collateral
- Time in Business
Credit Score
Credit is the most important component of all types of businesses, whether they are small or large. Lenders will always analyze the business's credit score and then decide whether it can pay the loan or not. Therefore, the best way to maintain a healthy credit score is to pay your dues on time.
Credit scores can also be easily obtained from several agencies such as Equifax, Dun & Bradstreet, and Experian. Another way of maintaining a positive credit score is to have a low debt-to-income ratio. Lenders will not invest in businesses that don't have a good credit score.
Annual Revenue
Another important factor that the lenders will review is the annual revenue of the business. Most lenders will only lend to those businesses that have been profitable for the last two years or more. Businesses need to make sure that all the financial statements are accurate and up to date.
Lenders will also look at specific details such as the current account (current assets divided by liabilities) and ask for copies of bank statements and transactions. However, businesses will only be eligible for a loan if their cash flow is growing.
Business Plan
A minority of lenders might not ask for a business plan, but most of them do, and businesses need to come with a clear and concise proposal. Usually, lenders require the business plan to know the purpose of the loan and discuss the business's stability.
One of the main components of business plans is the resumes of managers and staff. However, despite having a clear business proposal, the lenders will still ask for proof of the staff's ability and relevant credentials and experience.
Collateral
Collateral is an essential requirement, and most lenders will not provide a business loan if it cannot give collateral. Collateral can be anything like equipment or property. The collateral will also decrease the risk for the lender as it will have an asset in hand, so if the company fails to pay the loan, the collateral can be paid to fund the damages.
The owner of the company needs to provide a personal guarantee and will also need to submit some essential documents:
- Driver’s license
- Business license
- Tax returns (personal)
- Tax returns (business)
- Insurance plans of business
- Records for payroll
- Detail of owner
- Other financial obligations
Time in Business
Most banks are hesitant to lend loans to new companies that have been active for just a few months. Lenders cannot trust small businesses or startups that have just entered the market because they don't have a proper credit score and the cash flow is usually unstable. Banks will most likely lend to businesses that have been active for more than two years.
Wintrust Financial Group Application
Following is the application procedure of all the banks that borrowers have to follow:
Before you apply for a loan, ensure that all your documentation is up to date. Also, organize all the documents properly, and if some essential documents are missing, contact the relevant authorities. Collect all the financial information about your business and pay all the dues as soon as possible.
- Personal and Business credit scores and history
- Account statements of the business
- IRS documents, tax returns of the business, and the owner as well.
- Other important financial documents such as unpaid invoices, credit card details, and accounts receivable.
- Legal contracts (leasing, franchising, incorporation)
For more information, check out the website of Wintrust financial.
Requirements for SBA Loans
- SBA loan package application
- Business should be active for at least three years
- Submit tax returns
- A breakdown of the financial information about the business
- Detailed information regarding how the funds will be utilized
- Copy of sales, construction contracts, sales, and other transactions
- For startup business: a business plan
For more information on SBA loans, click here.
Summary of Wintrust Financial Loan Options
Wintrust Financial is a financial holding company that runs over fifteen commercial banks. Small businesses are struggling, and on most occasions, they need more than just one loan. While SBA loans are beneficial, they are rarely enough, especially for businesses with inconsistent cash flow. Below we have given the list of all the loans that Wintrust Financial offers:
- SBA 7(a)
- SBA/CDC 504 Loan Program
- SBA Express Lines of credit
- Wintrust Business Credit
- Commercial Real Estate
- Commercial Real Finance
Even though the interest rates and fees data are inconsistent, we know that SBA loans charge a small number of fees, usually 0.25 or 0.5 % of the loan. Lines of credit have no fees attached to them, and the borrower will get a consistent amount for a certain period of time. Interest rates and fees of commercial real estate vary because it depends on the bank.
However, borrowers cannot miss a crucial step, which is the eligibility criteria. Before applying for any loan, especially SBA-backed loans, read the eligibility criteria, as SBA loans consider the businesses technical details before giving away the loan.
Borrowers should have a proper credit score and credit history before they apply for the loans. Also, make sure that all your financial documents and balance sheet are up to date as the bank will review all that.
If you have any outstanding debts, make sure you pay them off before signing up for the loan. If any documents are missing, inform the bank or contact the concerned authority. Make sure that you don't miss out on anything.