Commercial Lending Articles

Commercial Lending in Texas

Commercial lending in Texas covers a wide variety of financing options. These include things like business loans, commercial real estate funding, as well as business credit. Depending on your needs, commercial lenders in Texas have financing products you’ll need. So, read on to learn more about commercial lending in Texas and beyond. Commercial lending in Texas, like in the rest of the nation, provides critical capital for businesses, whether they’re established, start-ups, or entrepreneurs. Commercial lenders offer different types of financing, most often tailored to specific situations, such as real estate, retail, industrial, equipment, and much more.

How Commercial Loans Work

Commercial loans work quite a bit like other types of loans. For instance, most have set terms, along with fixed period installment payments. Rates will vary depending on the lender and competition among lenders. Also, some lenders will require collateral, while others may require a down payment. Eligibility will also vary between lenders, but most will have minimum creditworthiness guidelines. 

Types of Commercial Loans in Texas

Fortunately, there are several types of commercial lenders. These include small business loans, such as SBA loans, commercial real estate loans, and different types of credit:


  1. SBA loans. The Small Business Administration sets the standards for different types of commercial financing. There’s the 7a SBA loan, which can be up to $5 million, with terms ranging from 10 years up to as long as 25 years. Rates are based on the going interest rates of the time and are generally competitive. The 7a can be used for working capital, inventory, or equipment. Meanwhile, the SBA 504 loan is purchasing a building, buying land, new facility construction, remodeling an existing building, machinery, or refinancing an expansion.
  2. Commercial real estate loans. Include such financing as hard money loans, bridge loans, construction loans, blanket loans, and more. Hard money loans are made available through a group of private investors, while bridge loans are short-term loans, and construction is for building new or improving or renovating an existing building. Blanket loans are for owners of multiple properties, giving the owners the ability to convert multiple loans into one.
  3. Business lines of credit. Include things like commercial credit cards, lines of credit, and vendor credit. The amount of credit, along with the interest rates, are determined by individual lenders or banks, or credit unions, and might be used for a variety of business needs.