The Types of C&I Loans That Support Business Growth
September 15, 2023
A common challenge for small businesses is a lack of available funds to seize an excellent opportunity to grow. When your business is positioned to leap forward, you need financing solutions that will help you achieve your goals of long-term success.
Commercial and Industrial loans (also known as C&I loans) could be the right option to help your company make purchases and investments that promote business growth. Learn how these loans work, the different types of C&I loans available, and why Texas Gulf Bank is the ideal lending partner for your financing needs.
The Basics of C&I Loans
Your company may have plans to create a high-quality new product or greatly improve an existing service. But without the funding needed to bring these goods and services to market, you could miss a revenue windfall. C&I loans provide your business with the financial resources needed to make your product and service ideas a reality.
A C&I loan works like a short-term lending option for companies. These business loans typically have variable interest rates and may be used to cover a vast range of purchases, investments, and growth opportunities, including:
- Buying new inventory
- Machinery and equipment purchases
- Hiring additional employees
- Adding new production lines
- Seasonal revenue fluctuations
- Building renovations
Unlike conventional bank loans, C&I loans may be funded as a lump sum to your business, or they can function as a revolving line of credit for working capital needs. The flexibility of C&I loans makes them a popular choice for many different industries, such as:
- Manufacturing
- Retail
- Healthcare
- Industrial
- Professional service firms
- Hospitality
With C&I loans, funding is typically secured by company assets such as current equipment, inventory, and current Accounts Receivable instead of commercial real estate as collateral.
The Types of C&I Loans That May Work Best For Your Business
At Texas Gulf Bank, we understand that not all businesses have the same type of lending needs. So, we offer a wide range of C&I loans and financing solutions to strengthen and grow your business. Our available C&I loans and banking options include:
- Owner occupied commercial real estate term loans
- Working capital lines of credit
- Capital Financing (e.g. equipment loans)
Accounts Receivable Funding
Accounts Receivable funding is an asset-based short-term loan where your Accounts Receivable invoices serve as collateral. Your short-term loan allows you to make purchases or close funding gaps while you wait for payments to be made, which also improves your overall cash flow.
Working Capital Lines of Credit
Working capital lines of credit are a short-term solution for helping a business with cash-flow needs. A working capital line of credit can be a financial lifeline for businesses experiencing issues such as:
- Major start-up expenses
- Accounts Receivable delays
- Seasonal business fluctuations
- Business expansions
When the outflow of cash is greater than the cash coming in, working capital lines of credit will help sustain your business until you increase your customer base and payments are received.
Equipment Loans
Equipment loans enable you to purchase new equipment, machinery, and other capital items while minimizing the negative impact on your cash flow. For instance, retail stores can purchase cash registers, shelves, display racks, and merchandise needed to open and begin generating sales.
Businesses of all industries can benefit from equipment loans, allowing you to expand production or sales without depleting business savings or your ongoing cash flow.
Trust Texas Gulf Bank For C&I Loans
Texas Gulf Bank has over 100 years of local lending experience and industry expertise throughout the Southeast Texas Gulf Coast region. We value our clients and strive to develop lifelong partnerships that position your business for long-term success.
Our lenders take the time to understand your specific business profile to develop loan solutions that support your needs. In addition, we provide reliable guidance and communication to ensure you successfully navigate each facet of the loan process for a seamless lending experience.
To learn more about the different types of C&I loans offered at our bank and determine which is the best fit for your business, contact our lending team today. We’re excited to help you grow your business in lasting ways.
All Loans Subject to Credit Approval