1. Home
  2. Business Loans

Best Small Business Loans in Waco, TX

Sept. 26, 2019, 10 p.m.

Around 40 percent of U.S. business owners apply for a loan each year, and the average size for these loans is $663,000. Business loans help entrepreneurs start a company or expand their current operations. Our partners at ConsumerAffairs researched the best business loans in Waco to help find the best rates and support for your growing company.

Everyone deserves to make thoughtful, informed purchase decisions. The local guides provided on this website are free for consumers. KXXV may receive compensation from our partners. Learn more.

Powered by
×
#1
RECOMMENDED
Seek Business Capital

Startup Consulting • Business Services

Sponsored Ad
#1 MOST POPULAR
Seek Business Capital
Seek Business Capital
Features
  • Available in Waco
  • More than 92% funding approval rate
  • Same-day funding approvals
  • Apply online
Read More
#2
Imperial Advance
Imperial Advance
Features
  • Available in Waco
  • Financial consulting offered
  • Flexible loan programs
  • Get funds in 24 hours
Read More
VISIT WEBSITE
CALL IMPERIAL ADVANCE
(888) 633-2083
Sponsored  Ad
#3
National Business Capital
National Business Capital
Features
  • Available in Waco
  • More than $1 bilion in funding secured
  • Multiple financing options
  • Expert financial advisors
Read More
Central National Bank
Central National Bank
Features
  • M-Th: 8:30am - 4pm
  • F: 8:30am - 6pm
  • Sat: 9am - 12pm
  • Closed Sun
  • cnbwaco.com/business-banking/business-loans
Location
8320 W. Highway 84
Waco, TX 76712
(254) 776-3800
American Bank
American Bank
Features
  • M-Th 9am - 4pm
  • F: 9am - 5pm
  • Closed Sat and Sun
  • ambankwaco.com/Business-Loans.aspx
Location
1601 N. I-35
Waco, TX 76705
(254) 412-2000
Extraco Banks
Extraco Banks
Features
  • M-Th: 9am - 4pm
  • F: 9am - 5pm
  • Closed Sat and Sun
  • extracobanks.com/business/lending-options
Location
1700 N. Valley Mills Dr.
Waco, TX 76710
(254) 761-2000
Incommons Bank
Incommons Bank
Features
  • M-Th:9am - 3pm
  • F: 9am - 6pm
  • Closed Sat and Sun
  • incommonsbank.com/loans/business-loans
Location
5400 Crosslake Pkwy., Ste. 100
Waco, TX 76712
(254) 420-1007
Alliance Bank Central Texas
Alliance Bank Central Texas
Features
  • M-Th: 9am - 4pm
  • F: 9am - 6pm
  • Sat: 9am - 12pm
  • Closed Sun
  • alliancebanktexas.com/business
Location
4721 Bosque Blvd.
Waco, TX 76710
(254) 741-8000
The First National Bank of Central Texas
The First National Bank of Central Texas
Features
  • M-Th 9am - 4pm
  • F: 9am - 6pm
  • Closed Sat and Sun
  • fnbct.com/borrowing-services/commercial-loans
Location
1835 N. Valley Mills Dr.
Waco, TX 76710
(254) 772-9330
TFNB Your Bank For Life
TFNB Your Bank For Life
Features
  • M-Th: 9am - 5pm
  • F: 9am - 6pm
  • Sat: 9am - 12pm
  • Closed Sun
  • tfnbtx.com/lending
Location
510 N. Valley Mills Dr., Ste. 100
Waco, TX 76710
(254) 840-2836

How to get a business loan in Waco

skyline

McLennan County’s population is expected to grow 22.4 percent by 2040, creating an environment for more businesses to thrive in Waco. If you are starting or expanding a company, taking out a business loan provides the capital needed to succeed.

Companies in Waco may need a small business loan to:

  • Purchase real estate
  • Buy or lease new equipment
  • Increase working capital
  • Purchase inventory
  • Expand marketing initiatives

Obtaining a business loan is not difficult if you know what to expect. Before applying for a business loan, make sure you meet the general requirements. Lenders typically look at six different areas when determining if a company qualifies for a loan.

Typical requirements for business loans in Waco

Factor Requirements
Credit 600+
Collateral Necessary for certain types of loans
Amount of debt Low debt-to-income ratio (50% or lower)
Cash flow Reliable stream of income
Age of business 2+ years
Industry Year-round business (not seasonal)

You may be eligible for a business loan even if you do not meet one or two of these requirements. Each lender qualifies borrowers based on different requirements, and not all lenders focus on the same areas.

Types of business loans in Waco

There are many types of business loans available for Waco residents, and choosing the right loan requires considering the use of the funds and your company’s needs and assets. Some of the most common types of loans in Waco include:

  • Business lines of credit are similar to credit cards. They allow businesses to access funding up to a specified amount and only pay interest on the amount used.
  • Invoice financing provides a short-term loan for companies who need a small amount of cash quickly. The company’s outstanding invoices secure the loan.
  • Merchant cash advances give a company cash upfront that is repaid by withholding a certain percentage of the company’s daily credit and debit card sales.
  • Equipment loans are used to purchase any equipment required by the company. These loans may require a down payment, and the purchased equipment secures the loan as collateral.

These loans are available from banks, credit unions and online lenders. Your lending institution can go over your business’s needs as well as the institution's requirements and help decide which loan is correct for you.

SBA and online business loans

Other options for small business owners in Waco include SBA loans, which are backed by the U.S. Small Business Administration, and term loans from alternate, online lenders and lending brokers.

Small Business Administration loan

The U.S. Small Business Administration (SBA) works with third-party lenders to provide small to large loans to small businesses by partially agreeing to back up the borrowing business (sometimes up to 85 percent) if it fails to repay the loan.

Each lender sets its own eligibility requirements, but typically you must have additional requirements to qualify for an SBA loan, including:

  • Be for-profit
  • Have a physical location in the U.S.
  • Have personal invested equity
  • Have no other funds/debts from other lenders

Most SBAs also charge a guarantee fee on loans greater than $150,000. This fee runs between 0.25 and 3.5 percent of the loan, depending on your terms.

Online/traditional business loan

Some online business lenders fund loans directly, while others help match business owners with individual investors and lenders to find the best loan rates. With an online business loan, you can also choose whether you want a short- or long-term loan.

Online business loans have a more straightforward application process than SBA loans. Many alternate lenders weigh your company’s viability and business plan more heavily than credit history, which gives you an opportunity for a loan even if you have bad credit. Keep in mind that you’ll probably have a higher annual percentage rate (APR) if you have bad credit.

Many lending brokers have business consultants on staff to help you secure a loan. These advisors help you create a business plan to put your company in the best position to qualify for a loan and grow in the future.

SBA loans vs. online lenders

Type of loan SBA Online
APR 7% - 8% 8% - 30%
Payment schedule Monthly Monthly
Benefits Better terms and conditions, more available capital Easy application process, ability to comparison shop, convenient
Drawbacks Extensive application process, lengthy turnaround time Higher interest rates/fees

Not every loan or borrower is created equal. To find the right business loan for you, research and compare options from a variety of lenders. Read through each contract to fully understand the terms and what fees you might have to pay as well. Using all this information, you can find what’s right for you.

Seek Business Capital

Seek Business Capital

With Seek Business Capital, business owners can receive a business funding estimate in just two hours. The company’s loans, which range from $5,000 to $500,000, have no restrictions on how the money can be used. Over 92% of all qualified applicants are approved. Waco business owners praised the quick and streamlined application process.

Sponsored Ad

Imperial Advance

Imperial Advance

CALL IMPERIAL ADVANCE

(888) 633-2083 VISIT IMPERIAL ADVANCE

Imperial Advance offers some of the best rates and terms by using third-party lenders to match Waco business owners to offers from multiple lenders. Funds are directly deposited in 24 hours so you can access the capital quickly. In 20 years of business, Imperial has funded over $250 million to more than 5,000 customers.

Sponsored Ad

National Business Capital

National Business Capital

With a global marketplace and simple application process, National Business Capital immediately connects you to more than 75 lenders to find your perfect lending match. Its professionals help compare and analyze your offers, and funds can be received in as little as 24 hours. Waco residents appreciate the company’s knowledgeable representatives.

Sponsored Ad

Our partners independently research and analyze the companies mentioned in our guides and work with subject matter experts to add valuable information that helps consumers make smart purchase decisions. Our partners will not include companies on these guides that do not meet specific quality standards. The compensation we receive from our partners may impact how and where companies appear on our site, including the order in which they appear.

Our partners independently research companies, and use editorial discretion to award companies with special recognition (i.e. Best Value) based on their staff’s judgement or subject matter expert’s judgement. Our partners do this to help you identify companies that will meet your specific buying needs, and do not receive compensation for these designations.