Need Bank Finance for Working Capital? Consider Texas Gulf Bank

October 27, 2023

Your business may start with a great idea to provide a needed service or valuable product in the market. But in order to grow over time, your business might need to tap into timely funding solutions. Without access to robust financing solutions, your business could struggle to cover basic expenses needed to keep the business moving.

If your company is in need of bank finance for working capital, learn more about the different types of working capital loans available and how each one can benefit your Texas business.

Also, discover the advantages of obtaining working capital loans from a regional bank like Texas Gulf Bank. We look forward to sharing how you can grow by leveraging our expertise and strategic financing options.

What is A Working Capital Loan?

A working capital loan is a short-term business loan designed to help finance the daily operations of your business. Rather than being used for buying long-term assets like real estate or heavy machinery, the funds from a working capital loan are intended for more immediate business expenses, including:

Rent and utility payments
Inventory purchases
Payroll and business taxes
Adding additional staff
Marketing costs
Purchasing small equipment and machinery
Buying fixtures, supplies, and office furniture

Companies that typically benefit most from working capital loans are those with seasonal fluctuations in sales or production needs. These funds can cover the short-term operational needs of the business while potentially stabilizing overall cash management.

Types of Working Capital Loans

Every business is different, with unique lending needs and business goals. Texas Gulf Bank offers a range of lending options to help you stabilize your finances. Your business may benefit from our various types of loan options, including the following.

Working Capital Line of Credit

Business lines of credit are a common type of working capital financing, offering companies both fund flexibility and business-friendly terms. A working capital line of credit can be used on various business expenses and operational costs, making them an ideal choice for companies needing steady financing during seasonal revenue fluctuations.

Similar to a credit card, a business line of credit allows your company to draw funds on an as-needed basis multiple times, up to a fixed credit limit. You only pay interest on the amount borrowed, making it a cost-effective option for managing short-term cash flow issues.

Small Business Administration (SBA) Loans

SBA loans are a popular choice for small businesses in Texas seeking working capital loan solutions. These loans are guaranteed by the federal government, making them an optimal choice for small businesses.

Specifically, SBA 7(a) loans are a favored SBA loan option because of the wide range of uses for approved loan funds.

Companies can use SBA 7(a) funds for the working capital needed to keep their businesses afloat. You can also use funds for other purchases, such as vacant land, commercial buildings, and refinancing debts.

Because these loans are backed by the government, the approval process could be lengthier than other loan types, but your business may be eligible for larger loan amounts.

Companies interested in pursuing SBA loans must meet the federal definition of a small business, as well as specific guidelines regarding the business location and nature of the business.

Short-Term Loans

Short-term loans give small businesses quick access to funds for immediate working capital needs. These loans typically have shorter repayment terms than other loans but can be an effective solution for addressing short-term cash flow challenges.

The ideal loan candidate for this type of short-term business loan should be able to demonstrate consistent sales and future growth projections to confirm your ability to repay the loan.

Key Considerations of Working Capital Loans

Although your small business can experience significant benefits and improvements with a working capital loan, there are important considerations to weigh.

The key advantage of a working capital loan is that it may be easier to obtain than other loan types. Going this route may provide business owners the ability to cover gaps in working capital.

A potential drawback of working capital loans is shorter repayment terms and higher interest rates compared to other financing options. In addition, working capital loans (like all conventional loans) are tied to a business owner’s personal credit record and subject to credit approval and underwriting.

To help you make an informed decision, one of our dedicated lenders will help you review whether a working capital loan is the right fit for your business.

Why Choose Texas Gulf Bank for Working Capital Loans?

While online lenders may seem like a convenient choice for securing working capital, there are several important reasons to choose a regional bank like Texas Gulf Bank for your working capital loan needs.

With over 110 years of experience serving businesses across the Southeast Texas Gulf Coast, we proudly offer the following advantages.

Regional Expertise

Texas Gulf Bank has a deep understanding of the local business landscape and market insights of the region. We know the unique challenges and opportunities facing local businesses, and our regional expertise allows us to provide tailored solutions that online lenders simply cannot match.

Transparency

We believe in leading with honesty and integrity. In our commitment to customer transparency, we take the time to ensure clients fully understand the terms of their loans, including interest rates, fees, and repayment schedules.

Exceptional Service

We value building lasting relationships with each of our clients. We offer prompt, local, and personalized customer service, and take the time to understand your specific needs and goals so we can offer the ideal lending solutions for your business.

Community Commitment

We are deeply committed to serving businesses throughout the Southeast Texas Gulf Coast by reinvesting in the region. By partnering with us for your working capital needs, you strengthen your own business as well as the local economy.

The Loan Application Process

When considering your working capital financing options, Texas Gulf Bank stands out as the ideal choice for businesses operating in our local area.

The loan application process for working capital financing with Texas Gulf Bank begins with preparation. A working capital loan requires your business to provide the following financial and business documentation to determine loan viability including but not limited to:

Financial Statements: You will be asked to submit the three most recent years of financial statements, including balance sheets, income statements, and cash flow statements.
Business Tax Returns: Business returns from the past few years will help us assess your financial history.
Personal Returns: We will also ask for personal tax returns from the individual guarantors on the loan.
Business Plan: A comprehensive business plan outlining your company’s current business operations, goals, and financial projections will be required.
Credit History: We will require personal and business credit reports to evaluate your creditworthiness.

The experienced lending team at Texas Gulf Bank will guide you through each step of the application process. Our lenders will be ready to answer any questions about the loan application requirements. We aim to make the working capital loan process as streamlined and seamless as possible so you can focus on growing your business.

Once the required documents are submitted, our in-house loan review team will begin the next phase of the loan approval process. If approved, we may be able to expedite working capital loan funding so your company can use funds to cover business expenses.

Get Started Today on Bank Finance for Working Capital

If your business is positioned for exciting growth opportunities, but you need working capital resources in order to make it a reality, then Texas Gulf Bank is ready to partner with you.

We are ready to discuss everything involved in bank finance for working capital. Contact Texas Gulf Bank today to take the first step toward securing the working capital needed.

Your success is our priority, and we are ready to help you achieve your business goals. Let’s get to work on helping your business remain fully operational and positioned for long-term growth.

All loans subject to credit approval