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Small Business Loans – Alternative Financing in Texas
Small business loans in the traditional banking world are getting harder and harder to find. But don’t take our word for it. Here’s how Karen Mills, a senior fellow at Harvard and former SBA Administrator states this perfectly in a recent report
“Financial crises tend to hit small firms harder than large firms. As the academic literature underscores, small firms are always hit harder during financial crises because they are more dependent on bank capital to fund their growth. Credit markets act as a “financial accelerator” for small firms, such that they feel the credit market swings up and down more acutely.”
We have written about the Main Street Credit Gap before, but it bears repeating.
Traditionally, a small business owner went to the bank where they had a business account and apply for a loan. Today, small business lending at the big banks is down over 30% from a decade ago and continues to decrease every year.
This is now known as the “Main Street Credit Gap”.
The Main Street Credit Gap refers to the fact that since the great recession of 2007/8, small business loans are still quite scarce nearly a decade later.
What causes this?
There are two primary forces at work. During the crash, banks vastly tightened small business loan requirements, and then the banks saw bigger profits in much larger loans.
A $2 million bank loan, costs pretty much the same to process as a small business loan for $150,000. Except that the return is better for the bank on the bigger loan.
Simply put, bankers have “moved upstream where the bigger fish swim.”
Karen Mills agrees writing in that same report;
“Small business lending continues to fall, while large business lending rises. In an absolute sense, small business loans on the balance sheets of banks are down about 20 percent since the financial crisis, while loans to larger businesses have risen by about 4 percent over the same period.”
Then she hits the nail on the head. “The banking industry in the aggregate appears increasingly less focused on small business lending.”
Your bank, while still a good option for many purposes, might not be the only, or even or the best option, any longer.
Online Lending Takes Off
Along with the big tightening of small business loans since the crash of 2007, small business financing has changed as we now carry the internet in our pockets and purses. And online lending exploded, filling the void the traditional banking industry had created.
But, if you are a small business looking for alternative financing in Texas, how do you choose from so many vendors and platforms? How do you research the most trusted sources, how do you avoid hidden fees? What are the customer service issues?
Alternative Financing in Texas – We’ve Done the Research For You
Unlike the many online vendors, Elan Capital is not beholden to one or two financing companies. Elan Capital has has direct access to dozens of alternative financing sources 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.
The Biggest Benefit of Working With The Experts At Elan Capital? Speed.
Make the call to Elan Capital and get the capital you need for your business…..Fast!
In today’s economy, access to business capital may be a challenging and a very time consuming process. However, you still have needs to grow your business; purchasing new equipment, buying extra inventory, expanding, remodeling, and more.
Small Business Loans – Alternative Financing in Texas
With offices in Dallas/Fort Worth, Houston, San Antonio, Austin, El Paso, and Lubbock, Elan Capital combines the best aspects of online lending with personal service here in Texas. Elan has direct access to dozens of small business funding sources which translates into hundred of different lending programs for virtually any need, in any industry.
General Types of Business Loans and Commercial Lending
- 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 and Business 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.
Elan can also help you get an SBA loan if needed, though that takes some time and effort, and if you need financing quickly, we have plenty of faster options.
- INVENTORY LOANS
UNSECURED BORROWING - FACTORING RECEIVABLES
- WAREHOUSE FINANCING
- ACCOUNTS RECEIVABLE LOANS
- AGRICULTURAL LOANS
- FLOORING LINES
- MACHINERY LOANS
- INSURANCE AGENCY LOANS
- MEDICAL PRACTICE LOANS
- WORKING CAPITAL LOANS
- GOVERNMENT GUARANTEED LOANS
- INTERNATIONAL LOANS
- ACQUISITION LOANS
- EQUIPMENT LEASING
- BUSINESS START-UP LOANS
- COMMERCIAL PROPERTY LOANS
- SBA LOANS
- AND MUCH MORE
Small Business Loans and Commercial Lending in Houston – Elan Capital
At Elan Capital, we know small business. We love small business. We champion small business.
We believe in you.
At Elan, our expert funding advisers can help you determine which of the many types of small business loans will best support your needs.
Above all, you’ll be dealing with a company that values honesty, integrity and transparency. But most of of all…
Passion
Each member of our team truly cares about your success. We have a passion for changing the lives of every day people in our community. We are dedicated to our mission and we believe in our cause.
Additionally, as an independent entity, Elan is not tied to one lender and instead, we can have many lenders working their hardest, to gain your business. All your questions answered. No hidden fees. Fast Alternative Financing in Texas.
Looking for Small Business Loans Alternative Financing in Texas? With one call, you can have dozens of lending sources competing for your loan. 