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The Texas Business Loans That Contribute to Growth

March 20, 2024

To stay competitive in Texas, small business owners need reliable financing options that allow them to pursue growth opportunities. However, with so many business loan options to choose from, it can be difficult to know which loan type is best for promoting long-term growth. Explore the most effective types of commercial loans that businesses typically use to help achieve sustained growth and stability. Also, discover why partnering with Texas Gulf Bank is the smart choice for Texas business loans.

3 Texas Business Loans That Spark Growth

Whether you need funding for acquiring commercial real estate, upgrading equipment, or boosting working capital, a business loan may be the catalyst you need for significant growth and new business opportunities.

Consider some of the most popular financing options that small businesses may be able to secure through a bank like Texas Gulf Bank.

1. Owner-Occupied Commercial Real Estate Loans

Is your restaurant constantly experiencing customer lines out the door because your current rented space is too small? Do you want to expand your manufacturing capabilities, but you don’t have the physical space to add new machines?

The decision to transition from renting to owning commercial property or acquiring larger property may provide a solid foundation for sustained growth.

With an owner-occupied commercial real estate loan, you can stop being at the mercy of space constraints and find the right-size permanent home for your business. Owner-occupied financing enables your business to pay for your business lot, construction costs, and mini-permanent mortgage financing through a single loan program.

To qualify, your business must physically occupy at least 51% of the property to meet owner occupancy requirements for this type of loan, but the remainder of the space may be rented to other businesses to generate additional revenue.

Some of the advantages of owner-occupied commercial real estate may include:

  • Room for more customers and operational expansion
  • Predictable mortgage payments for financial stability
  • Ability to build equity over time
  • Utilize property value to leverage future financing needs
  • Potential tax advantages for property ownership*

*Consult your tax advisor for IRS rules that govern any tax advantages of property ownership, depending on your particular circumstances.

Choosing an owner-occupied commercial real estate loan may put you in a position to take a major leap forward with your business, seizing growth opportunities. You may also be able to strengthen your company’s financial position while also enjoying the freedom to promote and expand your business. 

2. Equipment Loans

Staying ahead in your industry could require investing in the latest technology and newest equipment to meet project requirements and keep up with customer demands. Our equipment loans could provide you with the necessary resources to invest in cutting-edge machinery, vehicles, and tools that drive productivity and efficiency.

An equipment loan is a short-term financing program designed to help businesses purchase new or used heavy equipment and major machinery needed for growth. Rather than sacrificing cash reserves to pay for the acquisition cost, you may enjoy stable, manageable monthly payments that free up working capital for other business needs.

The types of small businesses that often benefit most from equipment loans include:

  • Construction
  • Manufacturing
  • Fabrication
  • Trucking
  • Land Development
  • Industrial Distribution
  • Logistics

With the funds from an equipment loan, your business may be able to reduce operating costs, eliminate waste, improve product or service quality, and gain a competitive edge in your market. In addition, well-maintained and modern machinery increases your overall business capabilities, allowing you to take on larger, more lucrative projects and clients. 

3. Working Capital Loans

If your business wins several new jobs, will you be able to quickly hire the additional staff needed to keep up with demand? If your sales peak is during the holiday season, can you keep your doors open during the slower months of the year?

Maintaining a healthy cash flow is crucial for managing day-to-day operations and taking advantage of sudden growth opportunities. Our working capital loans may offer the financial flexibility needed to cover operating expenses, manage seasonal fluctuations, or move forward with strategic investments.

A working capital loan is a short-term funding solution that may help stabilize your company’s cash flow as you wait for invoice payments to be collected and processed. Working capital funds can be borrowed as a lump sum loan or function as a line of credit, with funds available at any time on an as-needed basis.

Working capital loans cover a wide range of ongoing business expenses, including:

  • Accounts Payable invoices
  • Rent or mortgage payments
  • Utility bills
  • Employee payroll
  • Business taxes
  • Inventory purchases
  • Marketing expenses

If your business regularly experiences seasonal fluctuations in revenue, working capital loans may be an option to help cover these gaps until your sales and revenue swing back in a positive direction.

This type of financing is typically used for businesses to meet short-term needs like surviving seasonal downturns, responding to market changes, and continuing to invest in long-term growth initiatives. 

Connect With Texas Gulf Bank for Your Business Loan Needs

Texas Gulf Bank has proudly partnered with businesses across the Southeast Texas Gulf Coast region for over 110 years, offering the strategic lending solutions and banking services needed for growth. We have an in-depth understanding of the unique needs of small business owners, and we strive to provide financing options that fuel sustained growth.

Whether you want to expand your commercial space, upgrade equipment, or strengthen your working capital, our team is committed to providing personalized and strategic loan options that align with your business objectives.

Contact us today to speak with a local banker about Texas business loans and applying for financing through our bank. The success of your small business is our priority.

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