Houston is the most populous city in the state of Texas and the fourth most populous city in the United States. The economy is larger than most small countries, with an estimated population of 2,325,000. Small business loans can be difficult for businesses like yours to obtain. AdvancePoint Capital has a marketplace of financing solutions that can help solve your problems of getting small business loans.  We know local Houston, Texas, small business very well (including the greater Harris County area) and have funded numerous businesses successfully using our financing marketplace. 

Traditional banks are very difficult to deal with when it comes to small business loans. Banks have a responsibility to protect both small business and consumer customers’ deposits and follow Federal Reserve requirements and guidelines. Due to those reasons, banks must have high credit standards and financial statement requirements. Without a three year plus track record of showing profit and revenue stream requirements, it will be challenging to get approved for small business loans. You will also be up against a mountain of paperwork, approval times that take weeks, and possible denial due to less than excellent credit scores.

If you believe you can’t withstand those challenges or think you may not be approved, contact AdvancePoint Capital for help, as we have a marketplace full of loans for small businesses to fulfill your needs.

The 8 Best Small Business Financing Options in Houston, Texas

Long Term Small Business Loans in Houston

Small Businesses in Houston, Texas, may need a financing option that is longer-term in duration, like more than 12 months, due to the use of money or business need. Long term business loans offer that solution for businesses that are in need of a 2 to 5 year repayment period, but can’t get approved at a traditional bank.

Product Overview

Rate: Interest rates starting at 7.99% 

Repayment Period: 2 to 5 years

Fees: Origination fees 0% to 3%

Payments: Monthly or bi-weekly payments

Credit Standards: All types considered but prefers good to excellent

Documentation: Standard documentation, bank statements, financial statements, tax returns 

Processing Time: 3 to 5 days

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Business Line of Credit in Houston for Small Business

A business line of credit is a flexible option where 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. Business owners have the ability to draw money out at any time as long as it does not exceed the credit limit.

Product Overview

Rate: Interest rates starting at 7.99%

Repayment Period: Revolving credit. An annual or semi annual review will be required for renewal

Fees: Origination fees 0% to 3%

Payments: Monthly, bi-weekly or weekly payments

Credit Standards: All types considered. Good to excellent preferred

Documentation: Standard documentation. A one-page application and 3 months bank statements; sometimes financials will be required depending on credit limit.

Processing Time: Same day to 3 to 5 days 

Short Term Small Business Loans in Houston

Small Businesses turn to short term small business loans when traditional business loans are 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). Costs are based on a “factor cost,” not principal & interest, and are higher than traditional small business loans. The popularity of this type of business financing in Houston is due to reduced documentation requirements and more relaxed credit requirements than traditional small business loans. This is possible only because they charge more for costs, are shorter in term, and the payments are more frequent to minimize business lenders’ risks.

Product Overview

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

Repayment Period: 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 types considered 

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

Processing Times: Funding can be the same day to 24 hours

Business Cash Advance in Houston for Small Business

A business cash advance (also known as a Purchase of Future Sales Agreement or a Merchant Cash Advance) provides advances 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 small business owner’s 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, the owner can request a refund back 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 never changes due to fluctuating future sales.

Product Overview

Rate: 1.09% up to 1.45% Factor rate on funding amount

Repayment Period: 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 types considered. Poor to excellent personal 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

Advances are a great alternative when you can’t get approved for traditional financing. Working capital is the most common reason small business owners choose a business cash advance.

Merchant Cash Advance in Houston for Small Business

A merchant cash advance (also known as a Purchase of Future Sales Agreement) provides advances of futures by providing a lump sum upfront, with a fixed payback amount known as the specified amount. The repayment is attached to future credit card sales by taking a set percentage of future credit card sales at the time of batch until the advance is paid back in full. Owners find this valuable when they have low average daily balances or credit issues that prevent them from getting other financing options. A merchant cash advance is not a loan but an advance of future sales.

Product Overview

Rate: 1.09% up to 1.45% factor rate

Repayment Period: 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 the 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

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Equipment Financing in Houston for Small Business

This type of business loan or lease is used to purchase equipment to help the company function or expand product offerings and also improve overall efficiencies. Equipment loans or leases use the machinery and equipment that the company is looking to purchase as security and collateral. This product is commonly used by healthcare and manufacturing industries, but also any other company that needs equipment to operate. 

Product Overview

Rate: Interest rate starting at 5.5% on loans or 1.09% up to 1.45% Factor Rate on leases

Repayment Period: 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 or description of purchase

Time Frame: Same day up to 3 days

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Small Business Administration (SBA) Loans in Houston, Texas for Small Business

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

Product Overview

Rate: 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 needs: Full documentation. 6 months bank statements, two years of tax returns, year to date profit& loss, and balance sheets. More documents may be requested upon review.

Processing Time: 1 week to 30 days

Small Business Administration (Sba) Loan Programs That Can Benefit Small Business in Houston

SBA Standard 7 (a) loan program- SBA standard 7(a) loan is the SBA’s primary program is designed to provide financial assistance to small businesses.

SBA 504 Loan Program- The SBA 504 Loan is a powerful economic development loan program that will provide small businesses another avenue for business financing while promoting business growth and job creation. The use of proceeds from SBA 504 Loans must be used for fixed assets such as construction, real estate, land, or land improvements (and certain soft costs) or can also be used to refinance existing debt.

SBA Disaster Loans– Economic Injury Disaster Loans (EIDL)-These loans only provide assistance after natural disasters like tornadoes, wildfires, or floods, but when President Trump declared Covid-19 a nationwide emergency on March 13th, small businesses were able to access this program for emergency financing.

SBA Paycheck Protection Program (PPP) loan-The Small Business Administration (SBA) has established the SBA Paycheck Protection Program loan that will provide loans to small businesses affected by the COVID-19 crisis and need financial help.

Benefits and Best Uses of SBA Loans

Small businesses in Houston seeks the U.S. Small Business Administration (SBA) loans because they offer low costs and long term loans to finance large projects or business expansions. The longer the term obviously, the lower the monthly payments that impact the money flow of the business, so that’s why SBA loans are so popular. 

AdvancePoint Capital assists Houston small businesses through the entire process to make what is difficult, simple. We keep up with all the latest news, resources, information, and loans that the U.S. Small Business Administration (SBA) releases. If you are looking for SBA Houston, for small business loans, you have come to the right place.  

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Invoice Financing in Houston for Small Business

Invoice financing offers business owners that need money 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 obtain an advance of money now at an affordable cost of 1% to 2% fee off of the face value of the invoice. Invoice factoring is not a loan; it is an advance off of an invoice. 

Product Overview

Rate: Factor rate between 1% to 2% 

Repayment Period: No term limits 

Fees: Service fees

Credit Standards: Clients being invoiced is evaluated, not issuer of invoices

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

Processing Times: 1 week
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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 Do You Need a Small Business Loan for Your Houston, Texas Business?

It’s important to identify what business owners need to acquire the money for the business. Let’s take a look at some common reasons why small businesses need business loans in Houston.

  • Additional Working Capital
  • Office Equipment
  • Business Expansion
  • Emergencies
  • Advertising and Marketing to Increase Business

Frequently Asked Questions from Houston Small Business

Are small business loans in Houston, Texas, difficult to obtain?

It is not difficult to get small business loans in Houston. Houston is a major city with a stable economy that small business lenders and funders find desirable due to the dense population area and predictability of the economy in the region.  

Can I qualify for Small Business Loans in Houston, Texas, if I have bad credit?

There is a variety of loan options for owners with bad credit in Houston. Terms may vary depending on the loan product, and bad credit will affect costs and terms. Advancepoint Capital can help you get financing.

Can I get a small business loan in Houston with no documentation?

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

Can I get a start-up business loan in Houston, Texas?

Getting start-up business loans in Houston is extremely difficult. The Small Business Administration (SBA) does offer start-up financing, but the requirements and qualifications can pose a challenge. We also suggest help from private sources or investors for start-up loans.

Additional Resources, Information, programs, additional services, and Grants for Small Businesses in Texas

Texas initiated the “Go Big in Texas” initiative to promote starting and growing your business in Texas.

Texas Funding Programs

  • Agricultural & Rural Infrastructure Development
  • Small Business Service Provider Grant
  • Texas Product/Business Fund
  • Jobs 4 Texas (J4T)
  • CAPCO

Contact AdvancePoint Capital for more information on these programs.

The Bottom Line: Advice, Tips, and Warnings About Houston Small Business Loans

Small business owners must always start the process of getting a loan by identifying needs and asking the questions: what is the purpose of this loan? What challenges will you have in getting approved (credit issues, bank statement, financial statement issues)? Does the product fulfill your business needs? Always consider the cost versus benefit analysis when choosing a loan option.

The answers to those questions may lead you to alternative loan options than what you initially were considering. No two loan options are the same, and there is not a one size fits all approach towards small business loans. AdvancePoint Capital can help you navigate through the search easily and painlessly, without wasting time or, more importantly, money. 

AdvancePoint Capital has a large marketplace of loan products with many different offerings. We’d love to help with your business needs. As we always say at AdvancePoint Capital, compare, shop, and you will always save. Look to us for your small business loan, Houston!

How to Apply for Small Business Loans in Houston, Texas, to Receive Additional Funding

AdvancePoint Capital services can help and provide you the information to select the financing solution to satisfy your need. We offer an easy funding experience that our customers love, that is a fast, new, streamlined process to meet the business needs.

Applying for a loan for your business with AdvancePoint Capital is as simple as a 1, 2, 3 process that is free. Follow us and start with our website online form, then fill out the short application page, wait a few hours for your approval, and then fund!

AdvancePoint Capital

The fast, convenient, and straightforward way to get the business loan you need for your business – now!
Get your quote today by filling out our simple form.

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* 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.