For many entrepreneurs, especially those in the early stages, navigating funding options can feel like an uphill battle. Credit limitations, lack of collateral and the intricacies of loan applications often stand in the way of growth.
Jevaughn Sterling, diverse markets commercial lending manager at Amegy Bank, says the bank works diligently to remove these barriers by offering tailored guidance and expanding access to financing options that meet the unique needs of each business.
“Small business owners have several funding options available when seeking capital for their companies,” Sterling said. “Traditional bank loans and Small Business Association loans ... are often the first choice for many businesses.”
SBA loans have structured repayment terms that offer more flexibility in areas such as collateral and lower down payments.
“Lines of credit provide flexible access to funds up to a certain limit,” Sterling said. “They’re useful for managing the cash flow variations, which are created by offering customer payment terms. The main risk for lines of credit is the potential for high interest rates if the balance is not paid off quickly.”
To help clients choose the right option, Amegy Bank’s team of experts takes a hands-on approach, evaluating business needs, offering strategic insight and helping owners align financing with their long-term goals.
Meeting business owners where they are
Challenges such as creditworthiness, collateral requirements, insufficient capitalization and complex application processes can make securing capital daunting.
Sterling said Amegy Bank tackles these issues alongside business owners with a comprehensive approach, including:
- Offering products such as Special Purpose Credit Program loans
- Collaborating with local Community Development Financial Institutions, which provide loans, technical assistance and financial education to underserved communities
When choosing between traditional loans, SBA products, credit lines or alternative financing, Sterling said business owners should carefully consider the purpose of the funds, how quickly they are needed and how long the repayment period should be.
“In general terms, the length of the loan should match the expected payback period for the financing,” Sterling said.
Borrowing needs created by fluctuations in cash flow within a 12-month period should be financed with short-term working capital. Financing assets with a useful life exceeding 12 months should be financed with a loan whose terms match the asset's useful life.
Additional factors to consider when choosing financing options are:
- Comparing the cost of borrowing across different options
- Understanding the flexibility of repayment schedules
- How quickly funds are needed
- Assessing existing credit history
- Determining what collateral may be provided
A trusted partner in every stage of growth
Whether a company is just getting started or preparing for expansion, Amegy Bank offers guidance backed by deep industry knowledge and a commitment to long-term success. The bank conducts thorough assessments to ensure each client receives personalized recommendations.
One notable example is White Pants Agency LLC, a Dallas-based digital advertising firm. Founded in 2014, the company grew from a small partnership into a full-service agency offering content creation, strategy and web development. Like many small businesses, it faced challenges in securing the funding needed to grow.
With Amegy Bank’s support and strategic connections, including assistance through the Southern Dallas Investment Fund, White Pants Agency was able to expand its real estate footprint, invest in new technologies and grow its client base.
“As we celebrate National Small Business Week, White Pants Agency’s journey serves as an inspiration to other small businesses striving for success,” Sterling said.
What’s next in small business banking?
As business financing evolves, Sterling said technology will remain a key driver. Amegy Bank is staying ahead of the curve by investing in digital solutions and expanding its lending products to meet entrepreneurs where they are.
“The increased use of technology, including digital banking and fintech solutions, is becoming more prevalent,” Sterling said. “Amegy Bank has invested in industry-leading technology to enhance the customer experience and streamline access to capital and other financial services.”
Contact Amegy Bank to learn more about their small business services, or click here to schedule an appointment with a banker today.
The above story was produced by Multi Platform Journalist Sydney Heller with Community Impact's Storytelling team with information solely provided by the local business as part of their "sponsored content" purchase through our advertising team.
