Call the experts for working capital in Dallas – Fast small business loans in Dallas for every type of business including start-ups. Elan Capital Inc.
Working Capital in Dallas
The small business lending climate has changed substantially in the past decade. Banks have cooled considerably when it comes to small business working capital in Dallas and across the nation.
Despite the importance to the economy, since the “almost depression” of 2008, many small businesses continue to have a hard time securing the funding they need to grow and thrive through traditional bank loans. If you’re a small business owner, you may have already learned this the hard way.
The Landscape Has Changed – Working Capital in Dallas
- The business lending landscape has changed more in the last 10 years than the last 100 years
- The Great Recession of 2008 permanently changed small business lending
- Banking Deregulation allowed the introduction of Alternative Lending Sources
In retrospect, many small businesses would have been closed had it not been for banking deregulation. Alternative lending has saved the day, time and time again.
One fact says it all.
In 1995, 51% of traditional bank loans were to small business. In 2012 it was 29% and smaller studies since then suggest it’s fallen below 25%. Meanwhile the average loan amount has increased tremendously. In short, banks are loaning to big business, not small.
The concentration of assets in the growing-larger-by-the-day major financial institutions is problematic for small business credit because large banks are less likely to make small loans. The Federal Reserve Bank of Atlanta recently noted that on a scale of 1 (offering no loans or line of credit to small businesses) to 4 (offering the full small business loan amounts requested), small community banks ranked 2.4 versus 2.3 at regional banks and 1.85 at the large national banks.
What Happened to Small Business Working Capital in Dallas and Around the U.S.
In 2008, a crisis of unusual depth and duration hit Wall Street, turning a housing crisis that was already devastating Main Street small businesses into the worst recession since the Great Depression. In the months that followed the start of the financial crisis, the U.S. economy teetered on the brink of total collapse. U.S. job losses averaged nearly 800,000 per month between November 2008 and April 2009 as the unemployment rate climbed higher and higher.
The economy shrank at a staggering rate of over 8% between the 1st quarter of 2008 and the first quarter of 2009. Markets fell into a black hole, with the Dow Jones Industrial Average falling to a low as 6,400 in March 2009. Additionally, there was a real fear that the U.S. Auto Industry was going to virtually disappear, and with that, take down a large part of America’s small business manufacturing sector with it.
There is no question that both large and small businesses felt the brunt of the financial crisis. But, when you take a closer look, you see that the recession’s wrath, and the lingering effect, was not at all uniform across business size. In fact, small businesses were hit much harder, took much longer to recover, and truth be told, many are still be reeling from the economic fallout of the 2008 financial crisis.
In short, while wall street and the auto industry was bailed out, small business were not only left out, but penalized.
In particular, access to small business credit and working capital in Dallas and across the U.S., was severely constrained during the financial crisis, with small business loans falling much more sharply than large business loans. Worse, small business working capital and credit access has continued to be severely constrained during the recovery. Most every economist points to “the Main Street Credit Gap” as a primary reason it is taking so long to recover from the crisis.
The lack of small business credit and working capital in Dallas and the surrounding area is of particular concern for us here at Elan Capital; we are laser-focused and totally committed to helping small business owners grow their business here in Texas, by making lending simple, transparent and understandable. Additionally, here at Elan Capital, we do this all as fast as possible so that they can get the capital that they need to grow their business and create jobs.
Credit and Working Capital in Dallas – Version 2.0
Elan Capital, Inc. combines the best aspects of online lending with personal service here in Dallas and the surrounding area. Elan has direct access to dozens of small business funding sources for working capital in Dallas.
Let Elan Capital find the best solution for your specific needs today.
Elan has access to dozens of lenders offering;
- 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 leases and loans 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.
- Franchise and Business Startup Loans: Franchise loans and business startup loans are designed for entrepreneurs who need financing to help open their own business or franchise business. These loans, can be used for working capital, or to pay franchise fees, buy equipment, build restaurants and stores, and more.
- 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 business 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, veterinary fields, and more. 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.
And it doesn’t stop there. Elan has construction loans, inventory loans, factoring loans, agricultural loans and so much more. Elan Capital has a small business loan for virtually every need;
- 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 Good News – Not Just Working Capital in Dallas
Elan Capital has Texas Covered
The increased demand for quick and easy access to working capital has sparked fierce competition among lenders to provide lending options that best meet the needs of small businesses. Elan Capital has access to dozens of different lenders with some of the best options available for small business working capital in Dallas and beyond.
With offices in San Antonio, Austin, Houston, El Paso, Lubbock (as well as the Dallas/Irving/Fort Worth area) Elan provides small business financing solutions with a personal touch not found online.
Elan Capital has a multitude of options available for small businesses to obtain the working 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 in Texas.
Today, with one phone call, you can have dozens of lending sources competing for your loan.