Small Business Loans in Texas: A Brief Guide

by | Apr 11, 2022 | Business Finance | 0 comments

If you need a small business loan for your Texas-based business, there are a few options available to you. Whether you’re based in Dallas, Houston, Austin, or San Antonio, funding solutions can help you get the cash you need immediately versus weeks or months from now. Keep reading to find out more…

Texas is a great place to have a small business and here’s why:

  • Small businesses account for 99.8% of Texas businesses.
  • Small businesses employ nearly five million people in Texas.
  • Science and tech firms are among the biggest small business employers in the state.
  • Between 1994 and 2018, small business employment grew in the state by over 50%.

As you can see, there are numerous reasons why owning and operating a small Texas business can be a lucrative and fulfilling endeavor. And when you are searching for small business loans in Texas, you want to make sure that you are entering into the best scenario possible for your company.

What You Can Do with Small Business Loans Texas

Especially if you are working with an alternative or online lender, the funds you get from your loan can be used for various business needs and projects. For example, let’s say you want to expand your current office space. You can use your small business loan to build out that space, add on, or if that isn’t sufficient, you could also use loan proceeds to purchase or rent a bigger space.

Some small business owners will get a loan to hire more employees. Others might procure funding for a new marketing campaign or launch a new product. And still, other Texas business owners might need to boost their cash flow during a more stagnant sales period. The key is to find a lender who meets your needs, shares your vision, and has your best interests at heart.

Small Business Loans Texas: Preparing Your Application

So what goes go into a small business loan application in the state of Texas? It isn’t as difficult or complex as some people may think. Again, when working with certain types of lenders, namely online lenders, the process could not be more straightforward. If, on the other hand, you were to go to a traditional Texas bank, you would likely find that there are numerous hoops through which to jump. Wait times can be incredibly long, even for just a decision. And keep in mind, bigger banks tend to loan solely to more prominent companies. They are wary of taking on new clients in the form of small Texas businesses.

For typical small business loans Texas application, you will likely need the following:

  • Personal and business tax returns. Depending on the lender, they can ask for as far back as three years’ worth.
  • Financial statements. These can include profit and loss statements, balance sheets, and cash flow statements, among others they may require.
  • Any business leases that you have.
  • Articles of incorporation if applicable.
  • Bank statements. Again, these might go back to six months, depending on the lender.
  • Relevant licenses and permits. This will depend on what is required of your particular business.
  • A business plan. While this is not always required, it can help. Especially if there are weak areas of your loan application packet, having and presenting a solid business plan can undoubtedly bolster your approval odds.

Your Approval Odds for Small Business Loans Texas

This is a question that many business owners have. If they go through the entire application process, what are the chances that they will be approved for a small business loan? While there is no clear-cut answer, you can rest assured that your chances of getting approved increase significantly when working with alternative or online lenders. Conventional banks are looking for a reason to turn you down. You have to convince them otherwise. Online and alternative lenders are looking for reasons to approve you. They are invested in their clients and their short and long-term success.

First Union Lending is Here to Help

We work with Texas businesses all the time. From Dallas to Fort Worth, we have helped numerous Texas business owners get the funding they need quickly. Most of our clients get the cash in their accounts in as little as two days; we are that fast. Even if your credit score is less than ideal, we might still have a funding solution for you. Call today, and let’s get started together.

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Only U.S.-Based Businesses are Eligible