At present, over 20 million veterans of the United States Military live in the United States. They have begun to make up a significant portion of newly owned businesses within our country. The United States Government has a number of initiatives that help veterans finance homes, cars, and auto insurance. But unfortunately, there is not as much help for former military members opening their own businesses. For this reason, there is access to Veteran Small Business Loans. This financing option is designed exclusively for veterans who either own their own businesses or are currently looking to open one. Some of the previous U.S. government initiatives, such as the Patriot Express Loan, are no longer available — this makes unique financing especially important for modern-day veterans.
How to Qualify for a Veteran Small Business Loan?
Any current U.S. Military Veteran is eligible to apply for a Veteran Small Business Loan. If you are a veteran of the United States Military, you can begin your small business enterprise with help from a specialty Veteran’s loan. If you have a business partner who is not a veteran, they would not be able to be on the loan application with you. However, many online lenders provide access to funding for non-veterans so you should be able to find the flexible funding options you need.
If you are an entrepreneur and you recently left the army or left the army some years ago, you may need help with paying for business expenses. Some of the things you will need financing for include cash on hand for inventory and cash for payroll. Depending on the type of business you are opening, you may also need money for advertising and marketing, software, hardware, and equipment. Opening a new business requires an extensive amount of funding and resources. For this reason, it helps to get the financing necessary to help your business maintain adequate cash flow.
Why should you apply for a Veteran’s Business Loan?
A Veteran’s loan is uniquely tailored to veterans of the United States military. It is aimed at helping them spur enterprise growth and rebuild a solid income stream after leaving the military. Business loans for veterans can be extremely helpful especially for a business that is newly beginning. If there is a Veteran’s business that is just starting up and is in need of funding a small business veteran’s loan can provide the helping hand the business owner needs.
Put Together A Business Plan
Although there is funding available for veterans, it’s important to be aware of how those funds are being spent. This is because it’s very easy to lose track of spending and then after a short while, all of the financing has been used and it is time to make payments. A Veteran’s business plan can prove helpful when planning out the projected profits of the company. With a business plan in place, the business owner can set a plan for how capital will be used to increase revenue and drive profits over the life of the business.
What Can Veteran Small Business Loans Be Used For?
Once a veteran receives their Veteran Small Business Loan, the capital can be used completely at their own discretion. Small business loans are intended to help businesses cover their operational costs and encourage internal growth during times of cash shortages. Many of our current Veteran Small Business Loan recipients use their financing for the following reasons:
- Invest in additional seasonal employees
- Purchase additional retail or office space
- Invest in additional marketing and advertising campaigns
- Invest in technology or equipment
- Take advantage of investment opportunities at short notice
- Purchase inventory for seasonal increases in demand
As you can see there are a number of ways your business can benefit from additional financing. But don’t let the possibilities end with the list we’ve provided, contemplate the different opportunities your businesses could benefit from. Assess if additional capital may be of value to you!
Alternative Funding Sources
Veterans should be aware that in addition to Small Business Veterans loans, they can also qualify for a business line of credit. This is an alternative funding source that could prove to be just as good if not better than a traditional loan. Standard term loans sometimes have stricter requirements that can make it hard for a new business owner to obtain funding. However, by exploring a business line of credit, veteran entrepreneurs can deduce whether or not this funding option is the best choice for their financial goals.
Business Line of Credit
A business line of credit is funded by a lender or a traditional bank and there is a set amount that the lender allows the borrower to use and then pay back on a revolving basis. The business owner can withdraw funds in any amount from the line of credit at any time. However, there is likely to be a set amount of money that the business owner can take out a stipulated in the agreement. A business line of credit works like a credit card in that once the balance has been paid off, the business owner can again access the line of credit to use again. This line of credit is usually made available for one to two years before the contract needs to be renewed.
Why Choose a Business Line of Credit?
As a veteran of the United States military, it is great to have options in financing to help you start or expand your entrepreneurship journey. Funding solutions such as a business line of credit can provide the capital your small business needs to expand exponentially. If you are ready to take your enterprise to new heights, this funding source may be the best option for you. Below are some of the primary reasons to consider a business line of credit for veterans.
Appealing payment terms
A business line of credit has more appealing payment terms than a traditional loan. That’s because a standard loan requires that you pay a set monthly amount. This may pose a challenge as your business sales fluctuate. However, with a business line of credit, you can enjoy more flexible loan terms by paying the minimum amount due.
Immediate access to cash
Cash shortages are one of the plagues of many small businesses nationwide. Having immediate access to cash on hand can make managing day to day operations much more feasible. If your small business is struggling to pay for invoices, payroll, inventory, and other immediate expenses, then a business line of credit can prove useful.
Great for Building Credit
Another inherent advantage of using a business line of credit is that it is a great way to establish credit. This is ideal for veterans who are just beginning to build credit for their business. With a business line of credit, it’s possible to enjoy building a positive payment history that can help your business obtain more credit in the future.
Lower Interest Rates
A business line of credit has lower interest rates than a traditional term loan. However, in the event of a payment default, this interest rate would go up considerably. If a business owner can make their payments on time, they can enjoy low and comfortable interest rates which makes repayment much more manageable.
A business line of credit can provide veterans with the flexibility they need to cover short-term expenses and funding requirement. With access to funds on demand, businesses can focus on core business operations geared towards expansion and productivity.
Short-Term VA Business Loan
Another business loan option that veterans may be interested in is a short-term VA business loan. These loans are specifically geared for veterans or members of the military who have short-term financing needs. Whether it’s purchasing new inventory or bridging gaps in cash flow, extra funding can help. Short-term business loans allow business owners to genuinely take advantage of new business opportunities. Instead of tapping into personal funds or drawing funds from other areas of business, a short-term business loan can offer the ideal stop-gap solution.
Working Capital Loan
Veterans looking for funding can also benefit from looking into a working capital loan. This type of loan makes cash on hand available to Veteran entrepreneurs who have to meet day-to-day costs. Whether it is paying for staff payroll or keeping the overhead costs paid, a working capital loan can help.
Personal Loans For Veterans
In addition to a business line of credit, veterans can look into personal loans offered by many reputable online lenders. These personal loans are provided for both veterans as well as active military members. Unsecured loans of up to $40,000 and more are available at a variety of different interest rates. Like with all types of funding, it is important to fully explore the loan terms prior to selecting a specific type of personal loan. In some instances, military spouses, as well as their dependents, may also qualify for a personal VA loan. The loan has no stipulations on its intended use and can be applied to a number of purposes including starting a new business. Some lenders are able to offer special rates for the military under specific conditions. The special rates may only be extended to applicants with specific credit scores, checking accounts, and other stipulations.
By exploring all of the options available to them, veterans can make the best decision about which loan option is suited to their needs. Although it may take a bit of time and research to uncover the best option, eventually it is possible to find the right Veterans Small Susiness loan that fits your business model. Taking out a loan is no small consideration. Before applying for funding, it helps if a business owner considers whether or not their business will turn enough of a profit to allow them to repay the loan. By keeping these considerations in mind, they can be well on their way to having the critical funding they need.
What’s The Process?
We’re excited to help veterans access capital to grow and sustain their current business operations by connecting them with viable lenders. We do so in order to help spur additional growth, as well as lend a helping hand so veteran small business owners know their businesses can sustain themselves no matter the challenges they may face.
For this reason, we’ve attempted to make the application process as simple and pain-free as possible. There’s no need for long and meaningless documentation in order to process your application. Many banks require new customers to provide documentation that you may not have depending on how long your business has been operational. Instead, our lenders look at short-term, easy-to-find revenue information when making decisions for Veterans Small Business Loans. In many instances, great credit is not a major necessity. The only way to know for certain what you qualify for is to apply for small business funding today. You will know within minutes what type of loan you qualify for and the lending process can begin so you can receive your funds as quickly as possible. Our application process is handled by our online portal and is connected to the lenders who can loan up to $150,000.
About Business Line of Credit Hub
Business Line of Credit Hub is dedicated to providing access to business loan lenders nationwide. We have carefully selected only the most vetted lenders who can provide fair rates and flexible loan terms. At Business Line of Credit Hub, we stand behind our service and operate with the highest levels of honesty and transparency. When you apply for a loan with one of our lenders, you can feel confident knowing that all of your personal information is kept secure. We make the process of obtaining the funding you need as easy and simple as possible. Simply fill out our short online form to get connected to some of the best lenders offering Veterans Small Business Funding and business lines of credit. When you’re ready, fill out our intake form and begin your Veteran’s business today!
Learn More About Specific Loans for Your Business
Unsecured Small Business Loans
Secured Small Business Loans