The hub of the South Plains
Lubbock is the commercial center of the South Plains, with agriculture, higher education, healthcare and retail supporting its small businesses.
The region around Lubbock is among the nation's largest cotton-growing areas, and the city serves as the place where farmers buy equipment, supplies and services. Ag-equipment dealers, gins, seed and chemical suppliers, irrigation contractors and crop-insurance offices are woven into the local economy. Texas Tech University and its health sciences center bring students, researchers and medical professionals, and the city has a growing wine industry in the surrounding High Plains.
Healthcare is a major employer, which supports pharmacies, clinics, therapy practices and medical suppliers. Student housing, restaurants and shops near campus, along with the Depot Entertainment District downtown, depend on the school calendar.
Money that follows the harvest
Farm-linked businesses earn much of their revenue after harvest and spend heavily before it. Flexible financing helps bridge the months in between.
An irrigation contractor or ag-equipment dealer might sell little in winter and a lot in spring and fall. Inventory must be bought early, and customers may pay after harvest. This is a cash-flow problem more than a demand problem.
A business line of credit suits a business that borrows and repays several times a year. Revenue-based financing lets payments follow sales, which helps when income arrives in bursts. For tractors, sprayers and shop equipment, equipment financing lets the machine secure the deal, typically in 2 to 7 days.
Read our page on agriculture for how funders view farm-related businesses.
Weather, price swings and what they mean for borrowing
Drought, hail and commodity price changes can shrink farm customers' budgets quickly, so borrow with a cushion and avoid payments that assume a perfect year.
Because so much local income depends on crops, a bad season ripples into dealers, mechanics and diners. If you serve farmers, plan around that uncertainty. Choose financing whose payments you could cover in a below-average year, not only a strong one.
An illustrative example: a parts dealer buys $50,000 of extra stock before planting, expecting it to sell within four months at a 25 percent margin, or about $12,500 in gross profit. If financing that stock costs $4,000 in total, the plan works. If a weak season leaves half of it unsold, it may not. Knowing how much of the stock must sell just to cover the repayment is the most useful number to have before you sign.
Healthcare, campus and downtown businesses
Medical practices wait on insurance payments, while campus and downtown businesses follow the school year. Both benefit from working capital timed to their cycle.
A therapy practice may bill insurers and wait weeks for reimbursement. A coffee shop near campus may see summer sales fall sharply. Working capital or a line of credit helps with rent and payroll during those stretches. See our page for medical practices for more on how funders look at them.
Restaurants and bars downtown often want to renovate or expand before football season and graduation weekends. A term loan with fixed payments provides predictability for a defined project like a patio or a new kitchen.
What you need to apply
A 500+ FICO, six months in business, $20,000 or more in monthly revenue, the online application and three months of business bank statements.
The application takes a few minutes and uses a soft pull, so it does not affect your credit score. There is no obligation to accept an offer. Your file is matched against the funders in our 100+ funder network that fit your profile.
Seasonal farm-linked businesses should note a quiet quarter in the application so that a low month is not read as a decline. Keep business funds in a separate account and keep your records consistent with the name you applied under.
Water, weather and the long view
Plan the money around the specific risk your business faces, and size any borrowing to a realistic worst case.
Agriculture on the South Plains depends heavily on water and weather, and both can change the fortunes of farm customers from one year to the next. Businesses that serve them need a plan that survives a bad season.
Think in terms of a three-year average, not a single year. If a good year brings in 130 percent of normal and a drought year only 70 percent, your payments must work at 70. Many owners set a rule that fixed obligations may not exceed a set share of their worst recent month.
Equipment decisions benefit from the same discipline. A machine bought during a boom may be hard to pay off in a downturn, so compare the cost of leasing, financing and waiting. If the equipment is vital and earns its keep in normal years, financing it over its useful life is reasonable. If it is a convenience, waiting a season costs little. Save the borrowing for investments that clearly pay for themselves.
Central time and statewide help
Lubbock is on Central time. Apply in the morning to give ROI Funder's Eastern-hours team the best chance to fund the same day.
Same-day funding depends on how early a complete file arrives, so a morning submission is best. For more about Texas's regions and industries, see our Texas business funding page. For large, lower-cost projects, ask about SBA loans, which take longer.
Frequently asked questions
Does ROI Funder fund agriculture-related businesses in Lubbock?
ROI Funder considers farm-linked businesses such as equipment dealers, suppliers and service firms that meet the basic requirements. We cannot promise funding for any business.
Which product suits a seasonal business?
A business line of credit or revenue-based financing is often a good match because borrowing or repayment can follow your sales.
What time zone matters for same-day funding?
Lubbock is on Central time and ROI Funder's team works Eastern hours, so apply in the morning.
Will applying lower my credit score?
No. The application uses a soft credit pull and has no impact on your score.