Houston is the most populous city in the U.S. state of Texas and the fourth most populous city in the United States. Houston’s economy is larger than most small countries, with an estimated population of 2,325,000. Even in Houston, small business financing can be difficult for businesses like yours. AdvancePoint Capital has a marketplace of business financing solutions that can help solve your problems of getting a business loan for your business. We know Houston very well at that of the greater Harris County area and have funded numerous businesses in Houston successfully using our business financing marketplace. 

Traditional banks are very difficult to deal with as a small business because they have a responsibility to protect there both business and consumer customers deposits and follow Federal Reserve requirements and guidelines. Due to those reasons, banks must have their high credit standards and financial statement requirements. 

Without a three year plus track record of showing profit for your business and business revenue stream requirements, it will be challenging to get approved. You also will be up against a mountain of paperwork, approval times that are weeks, and possibly being denied due to credit scores less than excellent. If you believe you can’t withstand those challenges or think you may not be approved, contact AdvancePoint Capital as we have a marketplace full of business funding alternatives for Houston Businesses.

The 8 Best Small Business Financing Options in Houston

1. Long Term Business Loans in Houston

Houston businesses may need a financing option that is long term in duration that is longer than 12 months. Long term business loans offer that solution for those Houston businesses that are in need of 2 to 5 years in the repayment period but can’t get approved at a traditional bank for their business funding.

Product Overview

Rates: Interest Rates starting at 7.99% 

Terms: 2 to 5 years

Fees: Origination Fees 0% to 3%

Payments: Monthly or Bi-Weekly payments

Credit Standards: All credit considered but prefers good to excellent credit 

Special Features: 2 to 5 business days from Approval to funding

Documentation: Standard Documentation, Business Bank Statements, Financial Statements, Business Tax Returns 

Processing Time: 3 to 5 days

Benefits and Best Uses of Long Term Business Loans 

The main benefit of long term business loans is the length of time of repayment. The longer the term, the more money that can be offered to a business, the lower the monthly payments can be. The product is great for large expenditures such as business expansion or funding major business projects. 

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2. Business Line of Credit in Houston

A Business line of credit is a flexible option that you can draw funds as needed in a moment’s notice. A business line of credit operates like a credit card in that it is a revolving line of credit that charges a principal & interest rate with the ability to draw money out at any time as long as it does not exceed the credit limit.

Product Overview

Rates: Interest Rates starting at 7.99%

Terms: Revolving credit. Renewed annually or semi-annually

Fees: Origination Fees 0% to 3%

Payments: Monthly, Bi-Weekly or Weekly payments

Credit Standards: All credit considered. Good to Excellent credit preferred

Documentation: Standard Documentation. A 1-page application and 3 months bank statements, sometime financial will be required depending on credit limit.

Processing Time: Same day to 3 to 5 days 

Benefits and Best Uses of Business Line of Credit 

Flexibility is the main reason Houston business owners choose business lines of credit. That fact you can draw money from the business line at any time as long as you are below the credit limit, without questions of use of money is very attractive to business owners.

3. Short Term Business Loans in Houston

Houston businesses turn to short term business loans when traditional business financing is not an option. Short term business loans provide a fixed amount lump sum of money with a fixed payback amount calculated using a factor rate over a short term of time (typically 6 to 18 months). Rates are based on a “factor cost,” not principal & interest, and costs more than traditional business loans. The popularity of this type of financing is that the products reduced documentation and credit requirements are laxer than traditional business loans because they charge more for costs, are shorter-term, and the payments are more frequent to minimize lenders’ risks.

Product Overview

Rates: 1.09% up to 1.45% factor rate based on the funding amount

Terms: 6 to 18 months in duration (typically 12 months or less)

Fees: Origination Fees 0% to 5%

Payments: Weekly, Bi-Weekly and in some cases daily Monday-Friday

Credit Standards: All credit types considered 

Documentation: Reduced Documentation. A 1-page application and 3 months bank statements required 

Processing Times: Approval to funding can be same day to 24 hours

Benefits and Best Uses of Short Term Business Loans 

Short-term business financing is a great alternative when you can’t get traditional business financing and come in handy for the business that is in need of the money now for cash flow. 

4. Business Cash Advance in Houston

A business cash advance (also known as a Purchase of Future Sales Agreement or a Merchant Cash Advance) provide advances to a business with a fixed payback amount known as the specified amount. The advance is repaid by taking a fixed percentage of future overall sales deposits. 

Payments are collected by an ACH fixed daily or weekly payment deducted from a business bank account based on the fixed percentage of future sales. Once the month is completed, if the fixed payments taken are more than the set future percentage of sales, a business owner can request a refund back to the business for the overpayment. Repayment continues until the payback amount is paid back in full. There is no term limit with advances as the fixed payback percentage ever changes due to fluctuating future sales.

Product Overview

Rates: 1.09% up to 1.45% Factor rates on funding amount

Terms: No term limits (payoff depends on future sales) 

Fees: Origination Fees are typically 0% to 5%

Payments: Weekly or daily Monday-Friday Fixed ACH payments 

Credit Standards: All credit considered. Poor to Excellent credit accepted. 

Documentation: Reduced Documentation. 1-page Application and 3 months bank statements are all that is required.

Processing Time: Same Day to 24 hours

Benefits and Best Uses of Business Cash Advance 

Business cash advances are a great alternative when you can’t get approved for traditional business loan financing. Working capital cash flow is the most common reason Houston business owners choose a business cash advance. 

5. Merchant Cash Advance in Houston

A merchant cash advance (also known as a Purchase of Future Sales Agreement) is similar to that of a Business Cash advance, but the biggest difference is the repayment is attached to the future credit card sales by taking a set percentage of future credit card sales at a time of batch until the advance is paid back in full. Houston business owners find this valuable when they have low average daily balances or credit issues that prevent them from getting other financing options.

Product Overview

Rates: 1.09% up to 1.45% Factor rates

Terms: No term limits (payoff depends on future credit card sales)

Fees: Origination Fees are typically 0% to 3%

Payments: Fixed Percentage of future credit card sales at time of batch of credit cards.

Credit Standards: All credit considered

Documentation: Reduced Documentation. 1-page Application, 3 months processing statements and 3 months bank statements are all that is required.

Processing Time: Same Day to 24 hours

Benefits and Best Uses of Merchant Cash Advance 

Merchant Cash Advances is a great option for business owners in Houston who have issues with getting traditional financing and want a flexible repayment option attached to future credit card sales and payments that do not come out of the business bank statement. Like business cash advance, a merchant cash advance is used for working capital and cash flow.

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6. Equipment Financing in Houston

Equipment financing is used to purchase equipment to help the business function or expand product offerings and also improve the overall efficiencies of the business. Equipment financing uses as security and collateral the equipment that the business is looking to purchase. This product is commonly used by Houston healthcare and manufacturing industries, but also any other business that needs equipment to operate. 

Product Overview

Rates: 1.09% up to 1.45% Factor Rate

Terms: No term limits 

Fees: 0% to 3% Origination Fees 

Payments: Weekly or daily Monday-Friday Fixed ACH payments 

Credit Standards: All credit considered

Documentation: Low Documentation. 1-page Application and invoice for equipment

Time Frame: Same Day up to 3 days

Benefits and Best Uses of Equipment Financing 

Equipment financing allows you to secure the lease or loan with equipment that the lender has as security.

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7. SBA Loans in Houston

The Small Business Administration (SBA) s a Federal agency that provides programs, guidelines, and loan guarantees to approved lenders for businesses throughout Houston. The U.S. Small Business Administration’s mission is to help Americans start, build, and grow their businesses successfully. The SBA is not a lender. They provide guarantees to those approved lenders to recover a certain percentage of the business loan if it were to default. This guarantee gives the approved lender ability to take on the risk of business lending under SBA terms that they would not ordinarily do so on their own. SBA loans are highly sought after by Houston businesses. They are difficult to obtain because of extensive document review and high credit standards. 

Product Overview

Rates: Interest Rates starting at 6.50% 

Terms: 3 to 25 years 

Fees: Origination Fees are typically 0% to 3%

Payments: Fixed Monthly Payments 

Credit Standards: All credit considered, good to excellent credit preferred

Documentation: Full Documentation. Application, 6 months business bank statements, two years of business tax returns, year to date Profit & Loss, and Balance Sheet. More documents may be requested upon review.

Processing Time: 1 week to 30 days

Benefits and Best Uses of SBA Loans 

Houston business owner seeks SBA loans because they offer great rates and long term financing to finance large projects or business expansions. The longer the term obviously, the lower the monthly payments that impact a business’s cash flow. 

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8. Invoice Financing in Houston

Invoice financing offers Houston businesses that need cash quickly and can’t wait on outstanding invoices an advance off of that invoice ahead of payment by the client. Invoice financing allows you the ability to leverage outstanding invoices to your business to obtain a cash advance now at an affordable cost of 1% to 2% fee off of the face value of the invoice.

Product Overview

Rates: Factor rates starting at 1% to 2% 

Terms: No term limits 

Fees: Service fees

Credit Standards: Credit of the Clients being invoiced not business owner advancing off invoices

Documentation: Reduced Documentation. 1-page Application and roster of clients and current accounts receivable aging report

Processing Times: 1 week

Benefits and Best Uses of Invoice Factoring

Invoice Factoring allows business owners to supplement cash flow in emergencies by getting an advance off of an uncollected invoice.

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The fast, convenient and straightforward way to get the money you need for your business – now! Get Your Quote Today by filling out our simple form.

Why Does Your Houston Business Need a Business Loan?

It’s important to identify what is the purpose of acquiring the money for your business. Let’s take a look at some common reasons that businesses need business loans.

  • Working Capital
  • Equipment
  • Business Expansion
  • Cash Flow shortages
  • Emergencies
  • Advertising

Frequently Asked Questions

Are Business Loans in Houston difficult to obtain?

It is not difficult to getting financing for your business in Houston. Houston is a major city with a stable economy that business lenders find desirable due to the dense population area and predictability of business functions in the region.  

Can I qualify for a Business Loan in Houston if I have bad credit?

There is a variety of business funding options for business owners with bad credit in Houston. Terms may vary depending on the product, and bad credit will affect costs and terms. 

Can I get Business Loan with No-Docs?

There are business funding products that require less documentation. There are many business products available in Houston with reduced limited to low documentation requirements. Remember, the less documentation you provide; the more likely the terms will be less favorable. 

Can I get a Start-up Business Loan in Houston?

Getting a start-up business loan in Houston or any other place for that matter is extremely difficult. We suggest private sources or investors for start-up business loans.

The Bottom Line: Advice, Tips, Warning’s about Houston Business Loans

A Houston business owner must always start the process of getting financing for the business by asking the question, what is the purpose of getting money for the business? What challenges does the business have in getting approved? (Credit Issues, Bank Statement cash flow issues, time in business, financial statement issues) Always consider the cost versus benefit analysis when choosing a business funding option.

The answers to those questions may lead you to different business loan products than what you initially were considering. No two options are the same, and there is not a one size fits all approach. AdvancePoint Capital can help you navigate through the search in an easy and painless way without wasting time or, more importantly, money. 

AdvancePoint Capital has a large marketplace with many different product offerings. As we always say at AdvancePoint Capital, compare, shop, and you will always save!

How to Apply for Small Business Loan in Houston?

We at AdvancePoint Capital can assist you in finding the business financing solution you need. We offer an easy business loan experience that our customers love, that is a fast, streamlined process and high approval rates that come from working with us. 

Applying for a loan with AdvancePoint Capital is as simple as a 1, 2, 3, 4 process. Start with this online form, then fill out the short application page, wait a few hours for your approval, and then get your money!

The fast, convenient, and straightforward way to get the money you need for your business – now! Get your Quote Today by filling out our simple form. A convenient and straightforward way to get the money you need for your business – now!

Get your Quote Today by filling out our simple form.

* All loans made by either WebBank, an FDIC-insured Utah industrial bank, or Bank of the Internet Federal Bank, an FDIC-insured federally chartered thrift located in California. In connection with the loans, the Banks' underwriting conditions and terms apply.