Texas, the lone star state, is a powerhouse economically, being the 10th largest economy among all nations of the world. Texas regularly ranks as one of the best states for business. Known in the business community as a business-friendly climate, Texas provides help to small businesses in the form of no corporate income tax and no personal income tax—along with a highly skilled workforce, easy access to global markets, robust infrastructure, and predictable regulations.
However, what you might not have easy access to is business capital. At Advancepoint Capital, we provide business loans for businesses in Texas that may have trouble securing traditional bank financing do to credit score or other financial discrepancy. We understand that each business is unique and has different financing needs and accounts receivable. That’s why we offer a variety of loan products, including term loans, SBA loans, equipment financing, trade finance and lines of credit our online lenders network for hard to fund industries.
How Do I Get A Business Loan in Texas?
Texans face tricky rules when it comes to business funding. The state's legal landscape is dotted with Texas-specific laws and regulations, which can make it difficult for small businesses to get the financing they need.
Whether you're in Houston, Dallas, Austin, or any other part of Texas, AdvancePoint Capital can help your business get the funding it needs to grow and succeed. We offer business loans up to $1,000,000 with flexible terms and competitive rates.
The 9 Best Financing Options and Resources for
Texas Small Businesses
Texas Small Business Loans
Business term loans are the most requested loans by Texas business owners because of the fixed rates, fixed terms and fixed payments.
SBA Loans in Texas
The Small Business Administration administers the loan programs and guidelines for SBA loans. An SBA loan is guaranteed by the SBA, but offered by approved SBA lenders. The interest rates and terms are very attractive. You must have good credit, a written business plan and the paperwork can be daunting but well worth it if you are qualified.
Merchant Cash Advance in Texas
When a small business owner cannot get a business loan from a traditional bank they turn to alternative lenders who offer a Merchant Cash Advance, also known as an MCA, and a form of accounts receivable funding. MCA's are actually not loans, but purchase of future sales at a discount to the funder. These advances are based on current sales revenue and paid back by the funder taking a fixed set percentage of future sales until paid back in full.
Business Cash Advance in Texas
Business cash advances, a form of accounts receivable funding, are similar to merchant cash advances which are a sale of future receivables at a discount to a funder for a lump sum of money to a Business owner now. Repayment is flexible and made by business owner to the funder who takes a fixed set percentage of future sales deposits from business checking account until paid back in full.
Business Line of Credit in Texas
A highly sought after financing tool, business line of credit provides a line that is revolving and allows a business owner to draw funds on demand up to a credit limit without having to go through an approval process every time you draw. You are only responsible for paying interest on the outstanding balance.
Equipment Financing in Texas
For businesses that rely on heavy equipment for there services, equipment financing is a great option. The equipment is used as collateral to purchase expensive equipment and pay it back over years and not months with affordable payments.
Invoice Financing in Texas
For businesses that invoice there clients on a regular basis, invoice financing (also known as invoice factoring), is a great solution to accelerate cash flow. Invoice factoring companies advance money on an unpaid invoices within the net terms of the invoice that the business issues. This process accelerates the receipt of your accounts receivable aging invoices.
Short Term Small Business Loans in Texas
When traditional loans are not an option, short term loans can be an attractive alternative. Although shorter in duration (loans typically between 6 to 18 months to repay) than other loans, they are easier to get approved because the risk to the lender is reduced do to the length of time of repayment.
Long Term Business Loans for Texas
Larger businesses looking to expand typically need a long term solution due to the size of the loans needed and the need for affordable financing payments as it needs to be based on current revenues.
Small Business Administration
How to Start and Grow Your Business
View the Small Business Resource Guide for information and assistance in growing your local business, exploring funding options, and contracting.
How to Grow Your Business in Dallas
View the Dallas/Ft. Worth Small Business Resource Guide for information and assistance in growing your local business, exploring funding options, and contracting.
How to Grow Your Business in Houston
View the Houston Small Business Resource Guide for information and assistance in growing your local business, exploring funding options, and contracting.
How to Grow Your Business in San Antonio
View the San Antonio Small Business Resource Guide for information and assistance in growing your local business, exploring funding options, and contracting.
Find local assistance
Why Do Small Businesses in Texas Need a Business Loan?
The most common reasons Texas small businesses acquire loans to help their business:
- Working Capital or cash flow for business essentials
- Capital to cover accounts receivable shortfalls
- Loans for Equipment
- Ongoing business purchases
- Expand and grow a business
- Construction financing
- Access to Capital for Cash Flow shortages
- Businesses that have emergencies and need financial help
- Advertising and Marketing
- Accounting Software
- Other business needs
Additional Resources, Business and Community Lenders, Financial Assistance and Information about Texas Business Loans
PeopleFund- PeopleFund’s is a nonprofit organization and financial institution that offers loans help entrepreneurs in underserved communities enhance their businesses and keep local economies growing. With financing available for equipment purchases, permanent working capital term loans, and revolving lines of credit, we provide access to capital with low down payment or equity contribution, flexible underwriting, no pre-payment penalties, and a lending team dedicated to help you succeed through one-on-one training and business assistance & education. They focus on women, minorities, veterans, and businesses in low to moderate income areas to make sure everyone has a chance at the American Dream.
Texas Economic Development-Financing and Capital- The Governor’s Office of Small Business Assistance works closely with a variety of partners to facilitate small businesses accessing capital. Offering the following resources; Product Development and Small Business Incubator Fund, Non-Profit Lenders, SBA Loan Programs, Capital Access Program, Skills for Small Business, and Federal Grants and Resources.
Texas Enterprise Fund Grants (TEF) The TEF, offers grants for businesses that choose Texas as the location to open their businesses when the state has been competing with out-of-state locations.
Texas Workforce Training Grants- The Texas Workforce Commission (TWC) On top of loans from private and nonprofit lenders in the state, the following small business grants are also available to qualifying entities in Texas. Texas Workforce Commission Skills for Small Business grants The Texas Workforce Commission , or TWC, offers grants for small businesses to help cover the costs of training employees.This supports businesses with fewer than 100 employees and incentivizes training for new, full-time workers. Support is also available by the Texas workforce commission to upgrade the skills of existing full-time workers. Training is provided through community or technical colleges.
Federal Grants Grants.gov catalogs federal grants and provides additional information for those interested in applying.
USDA loans (Rural business lending) : USDA loans are up to $250,000 for businesses in qualifying rural communities throughout the state of Texas.
Texas Department of Agriculture Grants- There are several small business grant programs available through the Department of Agriculture for Texas businesses.
Business and Community Lenders (BCL) of Texas present a Texas-based, nonprofit lender. The main goal of BCL is to provide new business lending, entrepreneurship, free business coaching, homeownership, and community development assistance throughout the state for small business owners.
BCL of Texas, Business Growth Fund: These are loans between $50,000 and $300,000 for businesses established for over two years. Loans between $20,000 and $50,000 are available for businesses established for two years or less and can be used for purchasing essentials such as real estate, inventory, and equipment community development and extends loans to small businesses across the state.
Business Investment Growth Austin (BiGAustin) microloans . Though only applicable to specific areas in the state, BiGAustin may be a good choice if you want to get a loan within two to four weeks. For qualifying businesses that have been in operation for at least three months, loans can reach $15,000.
Small and diverse growth fund: These are microloans for minority and women entrepreneurs for up to $50,000. Rural business lending: These are USDA loans for up to $250,000 for businesses in qualifying rural communities throughout the state of Texas.
SBA Disaster Loans-Provides disaster loans and cash flow for areas impacted by a disaster that is declared by the SBA. This SBA loan has different requirements than the standard SBA loan.
Other Resources for Small Businesses in Texas You can also find advice, coaching, networking, and other resources beyond financing in many organizations throughout Texas. Here are a few ideas: Find your local Texas SCORE chapter The Service Corps of Retired Executives (SCORE) matches a retired executive business mentor to a new business owner in the same industry.
Texas Community Lenders
Texas Capital Bank
Texas Capital Bank offers commercial banking, wealth management, investment banking, and personal banking. Texas Capital bank brings deep knowledge and experience and work collaboratively using a personal approach and client-centric culture enabling them to deliver exceptional value to clients for more than two decades. The bank is also known for giving back in the community with establishing the Texas Capital Bank Foundation.
Texas Trust Credit Union
Texas Trust Credit Union exists to help build brighter financial futures. The credit union members are friends, neighbors, and business leaders, and they have been helping them to live brighter since 1936.
The State of Texas, Office of the Governor’s Small Business Handbook
The State of Texas, Office of the Governor’s Texas Startup Resources Directory
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