Dallas Alternative Business Loans – Elan Capital bridges the gap between your local bank and online alternative lenders that you can never actually speak to.
Dallas Alternative Business Loans
While the 2008 financial crisis devastated small and medium-sized businesses in many ways, the primary area where they were hit hard was in their ability to borrow money. During this time, traditional banks and financial institutions tightened their purse strings, preventing many small businesses from being able to access funds needed to grow their business.
Additionally, two other factors limited the average small business owner’s ability to borrow from the traditional banking system. First, regulations were put in place to limit the “easy” credit that led to the crash. But more importantly, banks learned that the costs for originating a small business loan were pretty much the same for a $5 million loan as it was for a $250,000 loan, but larger loans provided much more profit.
Back at the turn of the century, “alternative” loans were for people with bad credit. Everyone else went to where they banked for a business loan.
Now, more than a decade since the financial crash, banks reject roughly 80 percent of small business loan applications, while alternative lenders have approve the majority of applications (we average close to 90%).
And the increased competition in the direct lending market means borrowers have many more options.
But who has the time to research and apply to a dozen or more alternative direct lenders to get a loan that works for your business?
That’s where Elan Capital comes in.
Dallas Alternative Business Loans From Elan Capital
We have done the research. Elan has has direct access to dozens of differing alternative financing sources in the US, Canada and the UK with hundreds of different lending programs.
Because there is no one size fits all here in Texas. Every business is different, even in the same industry.
Some financing companies specialize in low credit scores, while others focus on start-ups, specific industries, etc. Because Elan Capital has so many financing sources, we have the right solution at the right time for virtually any business owner.
Alternative lending is no longer a last-ditch option for small businesses to obtain funding. It could even be the best option, depending on your business and its financing needs.
And since our main office here in Texas is in the Dallas area, we are uniquely positioned to sit down with you and work to find a lending program that works for YOU.
While Elan has 100’s of different programs, alternative business loans in Dallas can be broken down to six main “categories”.
- Working Capital Loans: Working-capital loans are designed as short-term solutions for businesses in need of money to help run their operation. Working-capital loans are available from most alternative lenders. The advantage of a working-capital loan is that it gives small businesses the ability to keep their operations running while they search for other ways to increase their revenue. Some downsides of a working-capital loan are that they often come with higher interest rates and may have shortened repayment terms.
- Equipment Loans: Many alternative lenders offer their own types of equipment loans. Equipment loans and leases provide money to small businesses for office equipment, such as copy machines and computers, or things such as machinery, tools and vehicles. Instead of paying for the large purchases all at once up front, equipment loans allow business owners to make monthly payments on the items. One benefit of equipment loans is that they are often easier to obtain than some other types of loans because the equipment being purchased or leased serves as collateral. Equipment loans preserve cash flow since they don’t require a large down payment and may offer some beneficial tax write-offs.
- Merchant Cash Advance: This type of loan is made to a business based on the volume of its monthly credit/debit card transactions. Businesses can typically receive an advance on their monthly transaction volume, sometimes even more. The terms for repaying a merchant cash advance vary by lender. Some alternative lenders take a fixed amount of money out of a business’s merchant account every day, while others take a percentage of the daily credit card sales. The best candidates for merchant cash advances are businesses with strong credit/debit card sales, such as retailers, restaurants and service type businesses. The advantages of merchant cash advances are that they are relatively easy to obtain, funding can be received in as quickly as a few days, and the loan is paid back directly from credit card sales.
- Business Lines of Credit: Like working-capital loans, lines of credit provide small businesses money for day-to-day cash-flow needs. These are not recommended for larger purchases (like vehicles and machinery), and are available for as short as 90 days to as long as several years. With a line of credit, you take only what you need and pay interest only on what you use, rather than the entire amount. These loans are usually unsecured and don’t require any collateral. They also have longer repayment terms and give you the ability to build up your credit rating if you make the interest payments on time.
- Professional Practice Loans: Professional practice loans are designed specifically for providers of professional services, such as businesses in the insurance, health care, accounting, legal, engineering, architecture and veterinary fields. These types of loans are typically used for buying real estate, purchasing an existing practice, renovating office space, buying new equipment and refinancing prior debt.
- Franchise Startup Loans: Franchise startup loans are designed for entrepreneurs who need financing to help open their own franchise business. These loans, can be used for working capital, or to pay franchise fees, buy equipment and build restaurants and stores.
And it doesn’t stop there. Construction loans, inventory loans, factoring loans, agricultural loans and so much more.
Looking for Alternative Business Loans in Dallas? With one call, you can have dozens of lending sources competing for your loan.
Give Elan Capital a call at