Small Business Loans in Dallas
businesses that need loans in Dallas, Texas can choose the kind of lender and small business funding options that they prefer, to maximize the benefits and best align with their funding needs.
Choosing the kind of loan or credit product you may need (secured vs. unsecured small business loans), the best lender (banks or private lenders), and the specific type of small business loan, line of credit, or similar for your small business funding needs is vitally important to ensuring you avoid falling into a debt trap, or take on more debt than you can effectively manage.
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Dallas is one of the best-known cities in Texas. Though technically the third-largest in the state by population, it’s often the first city that comes to mind when people mention Texas.
Located in the north east part of the state, it was originally developed and populated as a hub for oil, cattle, cotton, and related industries in the North Texas region.
While some vestiges of these early industries remain strong in modern Dallas, the primary economic sectors today include transportation, military and defense, IT, telecom, financial services, and, to a much lesser extent, energy.
However, Dallas is one of the most diverse cities in terms of business and market sectors, as well as a rich and diverse melting pot of a population.
With a warm to hot climate, mild winters, and a vibrant cultural scene, Dallas (and the larger Dallas-Fort Worth metroplex area) is a highly desirable location for tourism as well as for working and living.
Many small business owners from across the southern United States choose the greater Dallas metro area as an ideal place to start their business.
Education, IT, and other resources in the city ensure top talent for the workforce, relatively affordable prices, great transportation access, and all the amenities of a much larger city, without as much hustle and bustle as a New York or Los Angeles.
Still, that doesn’t mean that there aren’t challenges for small business owners in Dallas. Just like in every other city and state, small business owners often struggle with accessing the necessary working capital and funding they need for their business operations.
This can be particularly challenging during the first few years of business, as you attempt to establish yourself, create a name and space for yourself in the market, and gain market share from the competition – Many small business owners in need of funding turn to small business loans in Dallas.
The kinds of available loans in Dallas, like elsewhere in the country, can vary quite a bit – and aren’t even limited to loans, with lines of credit, merchant cash advances, and other options being readily available for small business financing.
Generally speaking, small businesses in Dallas choose either banks or private lenders as their source of funding, which can dictate the range of small business financing options that may be available.
Banks and private lenders each have different pros and cons, terms, interest rates, and so on related to their services, as do their different loan and credit products.
To that end, we’ve put together this guide to help you with the decision-making process to obtaining business loans in Dallas. We’ll discuss the different kinds of small business funding that are available from both banks and private lenders.
Additionally, we’ll look at a bit closer at the differences between banks and private lenders, and explain why more small business owners prefer private lenders today.
Finally, we’ll highlight the details and qualifications for applying for a business loan in Dallas at one of the leading private lenders today, BizFly Funding, and why you should consider them for all of your small business financing needs. Let’s get started!
The Different Types of Business Loans in Dallas, TX Today
From the outset, it’s vital that small business owners understand the different types of small business loans in Dallas that are available. Each represents a slightly different flavor of funding, with different advantages and disadvantages, ideal uses, and so on.
Many of these differences stem from the technical or logistical differences among the loans – their duration, repayment schedule, interest rates, and so on.
While traditional small business loans for Dallas businesses are the most common form of small business funding, there are some half dozen options available from most lenders – especially private lenders – today.
The availability, eligibility, rates, and other details will of course vary from lender to lender, but the overall functioning of these different types of business loans in Dallas are similar across the industry.
These types of loans and credit products include:
- Small business loans, providing a lump sum of cash for small businesses, which then must be repaid with interest over a period of years, usually with monthly repayment frequency
- Short-term business loans, an accelerated form of small business loan that works in a similar manner, but has a much faster repayment frequency, often with weekly or even daily repayments, lasting for a matter of months rather than years in most cases
- Small business lines of credit, which are revolving credit facilities that work almost like a credit card account, allowing small business owners to repeatedly borrow and repay in amounts they choose, up to the credit line limit
- Merchant cash advances, essentially pre-selling your future debit and credit card sales at a discount in exchange for a lump sum of cash right now
- Debt consolidation loans, allowing you to consolidate multiple debts into a single debt payment, often at a lower interest rate than your existing debts
- Small business loans for women entrepreneurs and women-owned businesses, providing access to much-needed funds for this demographic that has historically been discriminated against and left out of the small business funding discussion
- Bad credit business loans, ensuring that even small businesses with bad credit or a limited credit history can get the funds they need during the critical early years of their operation, and can therefore boost their credit scores, too
How to Get a Small Business Loan in Texas
The second part of securing your small business loans in Dallas (or whatever kind of small business funding you may choose based on the discussion above) is to choose a source or lender for your funds.
Broadly speaking, this means choosing between a bank/traditional financial institution, and a private, non-bank lender.
In an effort not to bury the lead here, most small business owners who do their research end up choosing a private, non-bank lender for the best options, prices, access, and service on their loans in Dallas.
As a center of financial services, Dallas has a great number of banks and traditional financial institutions which may offer small business loans.
However, what many small business owners don’t know is that banks aren’t terribly interested in providing small business financing. It may seem paradoxical, but banks see small business lending as a highly risky area of operations, and tend to want to avoid it.
Nearly half of all small businesses fail within the first five years, so they’re not totally off base on the risk involved.
Since banks typically also take depositor accounts in addition to lending, they need to meet strict covenants on capitalization and risk, and have entire departments dedicated to risk management.
In terms of small business funding, the way in which banks limit risk is by setting hard-to-meet qualification requirements for their loans in Dallas and elsewhere, as well as limiting the types of small business loans and credit products that they offer. They may also only offer secured (collateral required) small business loans.
Since most newer small businesses (and even more established small businesses) often don’t want to risk valuable assets as collateral, or may not have assets that qualify, this further cuts down on the options for financing that are available.
All of this adds up to mean that some 60-80% of small businesses cannot qualify or obtain the kind of small business financing they need from a bank. On the other end of the spectrum are private lenders, who don’t have those same kinds of restrictions or risk calculations.
Because most private lenders don’t do any kind of customer deposits, and often deal exclusively in lending, they can be much more open to risk, and serve a much larger range of small business customers.
Typically, private lenders deal only in unsecured small business loans and unsecured credit products, that also helps small businesses in need of small business loans in Dallas to qualify more easily and get the funding that they need.
That increased ease of access to small business funding is just one of several benefits that private lenders offer.
Other key benefits include:
- Fewer and/or more-easily met eligibility requirements, including lower minimum credit scores, shorter time in business, and lower monthly revenue requirements at most private lenders compared to banks.
- A fast and simple application process, often online, that allows small businesses to obtain business loans in Dallas quickly and easily, with funds delivery in a matter of days or even 1 business day compared to weeks for banks.
- A focus on service, with an emphasis on the needs of the small business community.
- Typically, non-bank lenders offer a much wider range of small business financing options than their bank counterparts, including most or all of the types of small business loans and funding that we discussed in the previous section.
Therefore, it should be no surprise that more business owners looking for unsecured small business loans in Dallas and elsewhere choose private lenders as their preferred source of funds.
It’s simply easier, faster, and provides better results than comparable banks services, allowing business owners to focus on their operations and growth rather than being mired in paperwork or weeks of stressful waiting for funds.
BizFly Funding: A Leader in Small Business Loans for Dallas, Texas, and the USA
Hopefully, our guide above has given you clarity on the kind of small business financing you may need, and your preferred type of lender.
If we’ve convinced you that a private lender is the best choice for business loans in Dallas, Texas, and everywhere else, then we urge you to consider BizFly Funding as your lender.
BizFly Funding is a leading private, non-bank lender in the US, that offers a full range of small business funding options. As a private lender, all of the loans and credit products that are available are unsecured, meaning no collateral is required.
BizFly Funding only focuses on small business financing, so you can be sure to get the best service from knowledgeable professionals who are 100% committed to meeting the financial needs of up-and-coming small businesses.
BizFly Funding offers small business loans in Dallas, as well as merchant cash advances, lines of credit, and all of the other financial products and services we’ve discussed in this guide.
Small businesses who qualify can borrow up to $1 million on several of these kinds of loans, which can make a huge difference in the early years of a small business’ operations.
While approval is not guaranteed, and requirements can always vary over time, the basic eligibility requirements for most small business funding options at BizFly Funding are highlighted below.
- Loan term of 2 to 36 months
- Minimum 6 months in business
- Credit score of at least 500
- $10,000 minimum monthly revenue
- Loan amounts of $5,000 to $1 million
- Interest rates of 9 to 45%
- Loan term of 6 to 24 months
- Minimum 12 months in business
- Credit score of at least 600
- $10,000 minimum monthly revenue
- Loan amounts of $15,000 to $1 million
- Interest rates of 9 to 45%
- Loan term is variable (repayment is based on sales and not tied to the calendar)
- Minimum 2 months in business
- Credit score of at least 500
- $8,000 minimum monthly revenue
- Loan amounts of $8,000 to $250,000
- Factor rates of 24 to 49%
- Credit line term is variable
- Minimum 6 months in business
- Credit score of at least 650
- $10,000 minimum monthly revenue
- Credit line amounts of $5,000 to $250,000
- Interest rates of 5 to 10%
As you can see, these eligibility requirements are relatively easy to meet. In particular, the low minimum credit score requirements mean that many small businesses, including those with poor credit or a limited credit history, can still qualify for precious small business funding from BizFly Funding.
In addition BizFly Funding offers outstanding customer service, and an easy online loan application that takes less than 30 minutes to complete.
Once approved, many businesses get their small business loan funds in as little as 1 business day, so you can put them to work ASAP for your business, take advantage of emerging opportunities, and make the investments and purchases you need for your business to succeed.
To learn more or to start the application process for your small business loan in Dallas, visit BizFly Funding online at https://bizflyfunding.com.
