If you or someone close to you have served in the military in the past and now want to run a small business, you can take financial advantage of multiple small business loans, specially designed for veterans. You have done your part by serving your country, now it is our time to provide adequate funds for your small business dream. Military people are perfect for running and managing a small business as they are trained well by the military to access the situation and manipulate it to become profitable. A vast number of small businesses are contributing to America’s economy. If a veteran is interested in running a business, small business loans are the best way to help a veteran make America great again!

BEST SMALL BUSINESS LOANS FOR VETERANS

Multiple lenders are offering small business loans for veterans on budget-friendly terms but not all of those loans are fashioned for veterans. Here we have compiled a detailed list of potential external funding options that lending and investments companies offer especially with the veterans or these loans come with the additional benefit for them.

Veterans can use the following loans to funds their startups or add into the working capital. We have compiled the list based on the following factors:

  • Loan rates: This includes the total cost that is associated with the business loan including the interest rate, APR, and additional fees.
  • Loan terms: This includes the repayment terms.
  • Eligibility Criteria: This includes the time in business, required a credit score and annual revenue.
  • Financing options: This includes additional benefits such as rewards, counseling, and coaching for the veterans.

As per the above criteria, the best and ideal loan for the American veterans is offered by StreetShares.

  1. StreetShares

StreetShares is a dedicated small business loan provider to the veterans, offering term loans, business line of credit, contract financing. With the interest rate starting from 7.19% to 29.9%, StreetShares is offering at the lower terms as compared to some of the traditional lenders. If the lender likes your pitch, funds will be in your bank account in two days.

  • Rates

Annual Percentage Rate: 7.19% to 29.9%

Additional cost (origination fee): 2.95% to 4.95%

Early payment penalty: None

  • Term

A borrower can get a business loan amount ranging $5,000 to $250,000. The repayment terms of the small business loan and the line of credit from StreetShares is from three months to three years. Most of the other lenders have monthly repayments, while this company allows the borrower to make the monthly payments. If you are unsatisfied with the loan term of this loan, then keep on reading we are you can find a loan suitable for your business.

  • Eligibility Criteria

A veteran small business loan is yours if you fulfill the following criteria:

Max time in business: At least one year

Required credit score: 600

Required annual revenue: $25,000

Their eligibility criteria are relaxed; the required annual revenue is just $25,000 – it does not better than this!

The only drawback of this business loans is its low loan amount; you can get a loan up to $250,000. If your need is at least $1 million then explore another option. The loan application only takes 10 minutes; you get the notification from the lender in the next couple of minutes, and funds will be in your account in the next two days.

  1. Accion

After StreetShares, the next on our list is Accion! A small business loan by Accion is the most affordable loan with relaxed eligibility criteria and low-interest cost. The financial advisors at the Accion at helpful, they make sure you get a perfect business loan according to your business demands and financial worth.

  • Rates

Annual Percentage Rate: 7% to 34% (fixed)

Origination fee: 3% to 5%

Processing fee: $135

Early payment fee: None

  • Term

Accion offers the loan amount of $3,000 to $1,000,000, and the loan terms are from up to five years, In addition to this, the borrower is obligated to make the monthly payments. This is the largest loan amount that you can get, so go through the eligibility criteria and apply away.

  • Eligibility Criteria

You can have access to $1,000,000 from Accion if you fulfill the following criteria:

Max time in business: At least six months

Required credit score: At least 575

Required annual revenue: $180,000

Although the required annual revenue is high if you are getting a veteran business loan worth one million dollars, it is worth it!

Moreover, the only drawback of business loan by this lending company is that the borrower has to offer the processing fee to get a fair deal, but with fair and stellar creditworthiness you can negotiate the processing fee with your lender. So gather the tax return documents and bank statements and start filling the application. Once the lender approves your application, you can get the funds in two days.

  1. Navy Federal Credit Union

If you want veteran business loans for your small business with a fixed interest rate, then this is the best deal for you. The interest rate and the annual percentage rate fall right in the middle of the business loans from StreetShares and Accion.

  • Rates

Annual Percentage Rate: 11% to 18% (fixed)

Additional cost (origination fee): Nill

Early payment penalty: None

  • Term

You can get a business loan amount of $2,500 to $100,000 from Navy Federal Credit Union. The loan terms of these business loans go up to five years. The borrower is obligated to make the monthly payments. Although the loan amount of this business loan is lower than the previous options if this loan amount can easily suffice your financial need then apply away.

  • Eligibility Criteria

Max time in business: At least one year

Required credit score: At least 650 or higher

The Navy Federal credit union has strict eligibility criteria, but it is offering the loan at the lower interest rate. In addition to this, if you want to take advantage of the business loans, then you must be a member of Navy Federal Credit Union. To secure this loan, visit their official website, print and submit their application form, and once you have completed the form, the lender will take three business days to process the application.

  1. Chase

Next on our list is Chase! For veterans who wish to apply for a business loan by a traditional lender, read this carefully. Chase falls in one of the top small business loans lender categories, making it an ideal bank for veterans bank shopping.

  • Rates

Annual Percentage Rate: 4% to 13% (fixed or variable)

Origination fee: 3% to 5%

Early payment fee: None

  • Term

Apply for the Chase veteran small business loan and get loan amount starting from $10,000 and $1,000,000. The loan term goes up to one to seven years, and the borrower is obligated to make the monthly payment.

  • Eligibility Criteria

Max time in business: At least one year

Required credit score: At least 650 or higher

Debt service coverage ratio: At least 1.25x

The only drawback of a small business loan from Chase is that most of their services are not available online. To take full advantage of their rewards and services, you must be living close to their branch. Visit their branch and apply for one of their reward programs. Check their website and find their nearest branch.

In addition to these lenders, you can explore Connect2Capital and SmartBiz lending companies.

VETERAN SMALL BUSINESS LOANS FROM ALTERNATIVE LENDERS

If you are not satisfied with the above-mentioned loans, then have a look at the following loans offered by alternative lenders make you go through each funding option before applying for a small business loan.

  • Personal Loans

Instead of going out and applying for the small business loan from credit unions and traditional lenders you can apply for a personal loan. When applying for a personal loan, you don’t have to mention the rationale behind the loan. Make sure you are giving them all the information they asked for. Often lenders also offer personal business loans without business plan documentation. Make sure you have a good credit score so that you get a fair deal from the lender.

  • Peer-to-Peer Lending

Apart from this, you can take advantage of the peer-to-peer lending; here, you receive from the investors who are interested in your business. The plus point of peer-to-peer lending is that each lending platform has different criteria, so you a wide range of businesses can qualify. The key point is that you must have enough cash flow to finance all the payments.

HOW TO CHOOSE THE RIGHT LENDER?

When finalizing the small business loan, keep the following factors in mind:

  1. Make sure the veteran small business loan does not exceed your financial need and cash flow, otherwise it will be hard for you to make the payment.
  2. Understand the required qualification of the small business loan and fashion your business loan application as per those terms.
  3. As long as you have done all the research, you can easily find a business loan to manage the growth of your small business.
  4. Lastly, check the repute of your potential lender by reviewing their customer reviews.

Traditional lenders and especially alternative lenders have made access to the veteran small business loan much easier. Weigh the pros and cons of each business loan and other funding options before signing the contact. Lastly, for more information on ideal small business loan follow us on Facebook and Twitter (@Onlinecheck). If you have any question, feel free to call us on our toll-free number at (833) 827-4412; we will help you every step of the way.

Small Business Financing News │ Merchant Advisors | blog
A Guide on Small Business Loans for Veterans In 2019
A Guide on Small Business Loans for Veterans In 2019
Looking for funding to fund your small business? The road ahead is full of twists and turns because it does require a lot of time and research to locate the best funding program that suits your business. Due to theRead more
Compare the best small business loans for veterans, including funding options from alternative lenders, banks and credit unions. Choose and apply wisely!
MichaelGavin
Merchant Advisors
Merchant Advisors
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