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Cover Operating Expenses with a Working Capital Loan

February 16, 2023

Winning a large client contract can transform the long-term future of your small business. But it may also create immediate funding needs because of the upfront costs associated with your new project.

Your business might need more cash available to cover both the necessary purchases for the project and your regular operating expenses while you wait to receive payment from your client.

A working capital loan from Texas Gulf Bank provides the financing needed to cover gaps in cash flow and maintain daily operations while potentially minimizing disruptions or delays.

Learn how this financing option may benefit your growing business, how to apply for this type of lending option, and why Texas Gulf Bank is the best choice for your business funding needs.

Interested in a complimentary
consultation with one of our bankers?

What Is Working Capital Loan? 

A working capital loan is a type of short-term bank loan that allows your company to borrow funds to support your business until the project is complete.

Working capital loans can cover operating costs and ongoing expenses while executing the terms of the contract, including:

  • Payroll
  • Rent or mortgage payments
  • Utilities
  • Taxes
  • Inventory
  • Raw materials
  • Business supplies

This type of loan may be the ideal option for your business if you anticipate lengthy gaps between when you begin the project and when invoices from your client will be paid.

The Benefits of Working Capital Loans 

When your company is approved for a working capital loan with Texas Gulf Bank, your company receives an influx of cash that you can use to satisfy contractual obligations with your client and meet project deadlines.

You’ll be able to make needed purchases, pay contractors actively working on your new project, and pay regular employees in your company who support ongoing operations.

Working capital loans are especially beneficial for industries that typically receive large customer orders or long-term contracts but must wait for lengthy periods of time to receive payment for services rendered. Industries that benefit most from working capital loans include:

  • Fabrication
  • Manufacturing
  • Construction
  • Transportation
  • Staffing
  • Food Production

A working capital loan can help stabilize your company’s finances, strengthening your buying power for future large-scale purchases or equipment investments.

Applying for Working Capital Loans 

Applying for a business loan through Texas Gulf Bank begins with an initial assessment to determine loan qualification. During the initial evaluation, we will review several important areas of your company, such as:

  • Business history
  • Strength of your business client base
  • Nature of billing terms
  • Projected invoices for the project
  • Expected timeframe for completing the project

You will also be asked to submit several forms of documents and records, including but not limited to:

  • Completed loan application
  • Three years of personal and business tax returns
  • Three years of business income statements
  • Year-to-date balance sheets
  • Current Accounts Receivable and Accounts Payable listings

Once all required documentation is received and reviewed, we will begin the process of reviewing the complete loan application. Because of our in-house review process, you may experience an expedited loan review and credit decision.

Texas Gulf Bank Offers Effective Loan Options 

As a community-based bank with over 110 years of service, Texas Gulf Bank has an in-depth understanding of the small businesses and industries that make the Southeast Texas Gulf Coast region thrive and the financing solutions needed to help them grow.

We strive to provide exceptional customer service, understand each business’s needs, and offer bank services that make a positive difference in your company.

Your business should always have the financial resources needed to successfully serve larger clients or handle large customer orders. We are ready to help you with the loan process. Our available loan options may provide you with the funding you need to cover operating expenses so your business can focus on completing project goals and meeting critical timelines.

To learn more about working capital loans through Texas Gulf Bank, call us at 800-467-7216 to speak with a lender, complete our contact form, or visit one of our local bank branches to begin the application process.

Interested in a complimentary
consultation with one of our bankers?

All Loans Subject to Credit Approval