Terrell, Texas: funding east of Dallas

Where Terrell sits

Terrell is a city in Kaufman County, about 32 miles east of Dallas. Its population was 17,465 at the 2020 census. Forney and Kaufman are the nearest neighbors, and Kaufman County had 145,310 residents and covers 786 square miles, with Kaufman as the seat. The distance from Dallas is long enough that Terrell has its own economy and short enough that Dallas is part of its trade area.

Trades and farm supply in a town at the metroplex edge

A place at the edge of a big metro area has two customer bases. One is the traditional local economy of farm, ranch and rural trades. The other is the commuter and construction economy spreading out from Dallas. A business that serves both, such as a contractor, supplier, mechanic or restaurant, sees demand from each, with a different calendar and payment pattern for each.

Traditional customers

Pay when crops and livestock sell, and often on a handshake.

New-construction customers

Pay when a draw is released, on the builder's timetable.

The contractor's clock

Texas law gives construction businesses some tools for slow payment. Under Texas Property Code section 28.004, overdue amounts accrue interest from the day after the due date at 1-1/2 percent per month. Under section 53.052, a lien affidavit is filed with the county clerk, and for a non-residential original contractor the deadline is the 15th day of the fourth month after the month the work was completed. This is general information, not legal advice, and it does not put money in the account on payday. That is the reason many contractors keep working capital in reserve.

What the money often does

1. Buys materials for a job before the first draw.
2. Pays a second crew while the first is still on site.
3. Replaces a truck, trailer or tool that has failed.
4. Covers payroll when a general contractor pays late.

Handshake credit, and what it costs

In towns where people know one another, owners often extend informal credit: a few weeks for the farmer, an easy schedule for the builder next door. It builds loyalty. It also adds up, and a business with a dozen friendly accounts can have a month's revenue out in the field. The owner pays suppliers and staff on time anyway. Listing those balances, with dates, shows how much cash is tied up in goodwill and how much working capital would be needed to carry it comfortably.

For illustration only

An imaginary Terrell roofing and siding crew is hired for a commercial building that needs $33,000 of materials and a larger crew for three weeks. The contract pays on completion. Round numbers, invented to show timing and not any terms we provide.

Applying

The application takes five minutes with a soft credit pull. We consider $25,000 to $5,000,000, and sole proprietors can apply. Funding can arrive in as little as 24 hours. See the Kaufman County and Dallas-Fort Worth pages, or apply now.