Thanks to the rigid military training, veterans are more likely to tolerate risks and be very organized. These are two important traits of a successful entrepreneur.
Of course, having the right trait is not good enough. You need to have the finances that will help you fund your business.
Just like other non-veteran entrepreneurs, the struggle to find financing is one of the biggest challenge faced by self-employed veterans. However, veterans have a slight advantage compared to others.
For one, the credit history requirement is not as strict. Most banks or lenders that offer a veteran or military loan understand that it is hard to maintain a good credit standing when they are on active duty overseas.
This is why it is important for veterans who are aspiring to be business owners to look for specific small business loans for military or veterans.
Here are 8 small business loans that veterans can choose from.
If you have a good credit score (600 or higher), this is a great option for you. Smartbiz also offers veteran loans to those who have not yet declared bankruptcy or have foreclosure issues, this is also a company you can get small business loans from. You can get between $30,000 to $350,000 with an interest rate of 6.25% to 7.25%.
This company offer loans anywhere from $5,000 to $300,000. The rate can be as low as 5.9% and as high as 32%. This will depend on the credit score of the borrower. The company requires borrowers to have at least 600 as their credit score and an annual revenue of $75,000.
This lending company is ideal for veterans who only need a small amount. You can borrow as low as $2,000 and up to $100,000. The interest rate is a bit high at 9% to 40%. But the company can approve the loan quickly. They only need to see that you earn $25,000 annually and did not declare bankruptcy in the past 3 years.
This company can lend you up to $500,000 but the interest rates are a bit high – ranging between 14% to 38%. They also offer lines of credit with an interest rate of 19% to 31%. The better the credit score, the lower the interest. This is ideal for businesses earning $150,000 a year and has been running for a year.
This company provides small business loans for those with bad credit or would like to get fast cash. You can borrow as low as $5,000 and as high as $500,000 – with interest as low as 5.99%. Borrowers should have a personal credit score that is no lower than 500. It is ideal for the borrower to have a business that earns $100,000 annually and operating for a year now.
If it is short-term capital that you need, Kabbage is the best company to approach. Since it is a short-term loan, they do not really require a minimum credit score – which is ideal for veterans. You can borrow $2,000 and up to $100,000 with an interest of 32% to 108%.
BlueVine loans require a credit score of above 530. They also require the borrower to have a business that had been in operation for at least three months. The amount that you can borrow is between $20,000 to $500,000 with an interest rate of 17% to 60%.
If it is fast cash that you need and you have a low credit score, this is a great company to consider. The company provides fast loan approval for $500 to $100,000 loans. You can get as low as 13% interest and as high as 68%. The company will require the borrower to use an online accounting software that the company will link with their own.