With offices throughout Texas, Elan Capital combines alternative small business loans in Austin, with a personal touch not found online.
Small Business Loans in Austin Texas
Out of habit, many small business owners gather up as much of the needed information as possible and head to their bank branch for a small business loan.
And out of habit, they decline you. But what if they did process it?
While going to a traditional banking institution can offer some great products, it’s certainly not the best avenue for business owners looking to access capital. In today’s world, businesses that are strapped for cash or growing rapidly, need cash and need it quickly.
And traditional banks don’t have that key ingredient that business owners need; Quick turn-around time.
Now we know the SBA is helpful. At Elan Capital, we process SBA loans. But know that less than 1 in 5 get approved. Why? Time and Paperwork.
Traditional Loan Paperwork.
This from SBA.gov
Documentation Needed for Small Business Loan Applications
While every loan program has specific forms you need to fill out and documents you need to submit, you will likely need to submit much of the same information for different loan packages. Before you start applying for loans, you should get some basic documentation together. The following are typical items that will be required for any small business loan application:
- Personal Background: Either as part of the loan application or as a separate document, you will probably be asked to provide some personal background information, including previous addresses, names used, criminal record, educational background, etc.
- Resumes: Some lenders require evidence of management or business experience, particularly for loans that are intended to be used to start a new business.
- Business Plan: All loan programs require a sound business plan to be submitted with the loan application. The business plan should include a complete set of projected financial statements, including profit and loss, cash flow and a balance sheet.
- Personal Credit Report: Your lender will obtain your personal credit report as part of the application process. However, you should obtain a credit report from all three major consumer credit rating agencies before submitting a loan application to the lender. Inaccuracies and blemishes on your credit report can hurt your chances of getting a loan approved. It’s critical you try to clear these up before beginning the application process.
- Business Credit Report: If you are already in business, you should be prepared to submit a credit report for your business. As with the personal credit report, it is important to review your business’ credit report before beginning the application process.
- Income Tax Returns: Most loan programs require applicants to submit personal and business income tax returns for the previous 3 years.
- Financial Statements: Many loan programs require owners with more than a 20 percent stake in your business to submit signed personal financial statements. You may also be required to provide projected financial statements either as part of, or separate from, your business plan. It is a good idea to have these prepared and ready in case a program for which you are applying requires these documents to be submitted individually.
- Bank Statements: Many loan programs require one year of personal and business bank statements to be submitted as part of a loan package.
- Collateral: Collateral requirements vary greatly. Some loan programs do not require collateral. Loans involving higher risk factors for default require substantial collateral. Strong business plans and financial statements can help you avoid putting up collateral. In any case, it is a good idea to prepare a collateral document that describes cost/value of personal or business property that will be used to secure a loan.
- Legal Documents: Depending on a loan’s specific requirements, your lender may require you to submit one or more legal documents. Make sure you have the following items in order, if applicable:
- Business licenses and registrations required for you to conduct business
- Articles of Incorporation
- Copies of contracts you have with any third parties
- Franchise agreements
- Commercial leases
Questions Your Lender Will Ask You
Forms vary by program and lending institution, but they all ask for the same information. You should be prepared to answer the following questions. It’s a good idea to have this information prepared before you fill out the application:
- Why are you applying for this loan?
- How will the loan proceeds be used?
- What assets need to be purchased, and who are your suppliers?
- What other business debt do you have, and who are your creditors?
- Who are the members of your management team?
Is it any wonder that many business owners believe the paperwork to get a traditional loan, is another full-time job on top of running the business?
The average time frame to complete a traditional bank loan can range 30-60 days (60-90 for an SBA loan).
When a small business has to deal with mountains of paperwork and lengthy approval times, is it any wonder alternative lending took off?
The average SBA loan is $350,000. WHOA! Most small businesses don’t make that much in a year! The larger national banks don’t even process small business loans under $1M much anymore, and smaller community local bank loans average about $130k. Still pretty big for many small business owners, even if you have all the needed paperwork and can afford to wait a quarter year or more.
What are the alternatives for small business loans in Austin?
The market for small business loans online has exploded. Small business lending is changing rapidly in much the same way as Amazon changed retailing and Square changed the payment industry. But if you search online for small business loans in Austin, how do you choose the best platform for your needs?
Wouldn’t it be nice if you could talk with a local professional?
And if you asked that question to yourself, then you need to call Elan.
Small Business Loans in Austin – The Elan Capital Way
Unlike the online vendors, Elan Capital has access to dozens of different lenders, all with different products for different needs. For instance we have products specifically designed for insurance agencies. Get the picture?
While Elan has 100’s of different programs, our small business loans in Austin, can be broken down to four main “categories”.
- Term loan is a lump sum you borrow and repay on set terms, including the annual percentage rate. This is generally the least expensive type of financing.
- A line of credit gives you access to a set amount of cash that you can tap when necessary. This is generally used by businesses that need short-term financing to bridge cash flow gaps (ex. seasonal businesses).
- Invoice factoring, also known as invoice financing or accounts receivable financing, is an option for small businesses that deal with unpaid invoices. Instead of just waiting to be paid, you can get an advance on those invoices, which you then pay back along with a fee when customers settle their accounts. This is popular option where there is a big one-time expense
- A merchant cash advance offers a way to get an advance on future credit card/debit card sales.
Elan Capital Inc, has many subsets including
- 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
The increased demand for quick and easy access to working capital has sparked fierce competition among lenders to provide alternative lending options that meet the needs of small businesses. Elan Capital has access to some of the best options available for small business loans in Austin Texas.
And many of our applications take less than 30 minutes start to finish. Funding can be released in just a few days.
But the difference is we have access to the products that are right for your business combined with the personal touch you used to have with your bankers.
Our goal is to grow with you.
Elan Capital combines new technology with old fashioned, in-person customer service not found “online”.
Elan Capital uses dozens of lenders and is not beholden to just one lender. With each lender having dozens of products, Elan Capital has direct access to hundreds of small business lending programs.
All done with a personal touch from small business specialists that live and work in right here in Texas.
One quick application. Dozens of lenders. Hundreds of programs. All with transparent fees.
Finding the right alternative source for capital and small business loans in Austin is the first step in the process, so contact the experts at Elan Capital today to investigate your options.
Elan Capital has a multitude of options available for small businesses to obtain the capital they need to start up, sustain operations, expand a business and ultimately succeed. We look forward to a long, beneficial relationship. Having a solid understanding of all the options available and how they meet your business needs is key to determining the lending option that is best for your small business here in Austin.