You’ve turned your idea into a business. Now you’ll need money to start it—and keep it growing. Fortunately, there are more ways than ever to find the capital you need.
What Are Commercial and Industrial (C&I) Loans?
C&I loans, often called commercial loans or business loans, are loans issued to businesses (sole proprietorships, corporations, partnerships and other business enterprises) rather than an individual. C&I loans can be used to support a wide range of business needs, such as generating working capital, investing in equipment or purchasing inventory. In general, most C&I loans are short-term loans that are secured by collateral and will need to be paid off within one to two years. However, C&I loans are designed to meet the unique needs of each business and have different funding and repayment terms.
The Benefits of C&I Loans
C&I loans can get you the financing you need to grow top-line revenues. Knowing exactly how much you need and how you will use your funds will help you determine which type of credit you ultimately select. There are different loans if your priority is cash flow or if you want to invest in commercial real estate.
There are many reasons why business owners apply for credit, but one of the most important reasons is that a business loan eliminates the need to pay for company expenses using your personal funds. A C&I loan, such as a term loan or line of credit, can help you cover start-up costs, immediate equipment needs or growing pains. For example, if you’re expecting clients to pay their invoices soon, but you don’t have enough cash on hand to pay your employees, you can get a line of credit that will help you cover employee payroll until your receivables come in. Or if you’re wanting to expand by acquiring another company, a term loan can help fund that purchase.
Credit Score and C&I Loans
Your credit score plays an important role in obtaining credit for your business. It’s important to maintain a healthy score and strong credit history by paying bills on time, avoiding negative public records such as liens or collections, and minimizing debt. Keeping a positive credit history increases your eligibility for lower-interest loans. You can keep track of your credit score and monitor suspicious activity by accessing your free annual credit report.
C&I Loans for Houston Businesses
At Stellar Bank, we specialize in supporting Texas businesses. Whether you need a banking partner that will help you finance top-of-the-line equipment or secure your dream retail space, we pledge to make your growth and success our biggest priority. Our C&I services include equipment financing, lines of credit and commercial real estate financing.
Ready to get started?
We are dedicated to serving businesses in the greater Houston area and surrounding counties. Talk to a Stellar Banker about our business loan options today.