Veteran entrepreneurs make up about 7.5% of the nation’s 5.4 million business. What is little known however, is that acquiring financing from small business lenders isn’t always an easy process. Like any entrepreneur, small business loans are used to hire new employees, purchase equipment and fund marketing expenses. Unfortunately, small business loans for veterans aren’t offered as often as one might think. Because small business lenders look for stability in their applicants, it can be difficult for U.S. military veterans, whose financial history may have gaps because of time devoted to active duty.
Are there options to obtain small business loans for veterans?
The simple answer is yes. The SBA launched the Patriot Express Pilot Loan Initiative in the summer of 2007, according to the U.S. Small Business Administration Office of Veterans Business Development. This guarantees more than $1 billion in loans for veteran-owned businesses per year.
Participating banks, small business lenders and other financial institutions will offer the patriot express loan to veterans who meet the criteria. To qualify, the veteran has to show that they received an honorable discharge from their military service. In addition, veterans must obtain an eligibility certificate from the office of Veteran Affairs and take it to the small business lender to include in their application. They must also own a minimum of 51% of the business.
What are the terms for the Patriot Express Pilot Loan?
Under the Patriot Express program, disabled veterans are eligible to apply for and receive loan amounts up to $500,000. The benefit to the Patriot Express loan is that the interest rates may not exceed 2.25% over the rate for loans that are seven years or less. For loans over seven years, small business lenders can charge up to 2.75% for loans.
Call Fast and Easy Funds today to learn more about small business loans for veterans!
Entrepreneurs of small businesses sometimes struggle with procuring the needed capital to grow their businesses. A lack of a strong sales history in financial statements, combined with poor credit tends to be what causes them to be declined for small business loans when they reach out to lenders. Some small business lenders are amenable to the ailments of small businesses and will approve them for small business loans -even with bad credit- but that doesn’t mean that the benefits stop there. These approvals have an adverse effect for entrepreneurs that apply for small business loans with bad credit.
For starters, entrepreneurs who receive small business loans, even with bad credit, are able to begin establishing a positive credit history with their lender. Banks and lending institutions have been around long enough to understand that most, if not all, entrepreneurs are going to walk through their doors with financial baggage. They don’t necessarily care about the past. Lenders are more interested in what business owners are doing now to create a stable and profitable financial future. An entrepreneur making regular, timely payments on a small business loan will find themselves in a favorable position when it’s time to go through another round of financing.
Additionally, the longer the length of small business loans, the better it is for the credit rating of the business/entrepreneur. Companies that haven’t been around as long are at a disadvantage because they don’t have a reputation to present to lenders. This is especially discouraging when there’s no credit history to review either. A business owner paying small business loans over months/years will see their bad credit ratings rise in greater increments than a business owner paying loans with shorter durations. The important thing to remember is that credit is used to determine the risk factor for a lender or account holder issuing out money or any other assets. Entrepreneurs with bad credit are encouraged to seek out small business loans to make them less of a red flag among lenders.
Between April 30th and May 6th, the estimated 28 million small businesses in the United States will celebrate National Small Business Week. The SBA (Small Business Association) will pay homage to the hardworking American entrepreneurs that make up the backbone of our economy. Some notable events include:
NSBW Awards Luncheon in Washington, DC
11:30am – 2:00pm
SBA Administrator Linda McMahon will announce the National Small Business Person of the year, SBA’s highest honor. Nominees from each state and territory will be present to see who will be crowned the next National Small Business Person of the Year at the U.S. Institute of Peace in Washington, DC. SBA will also honor individuals in the following award categories:
- Exporter of the Year
- Small Business Prime Contractor of the Year
- Small Business Subcontractor of the Year
- 8(a) Graduate of the Year
- Dwight D. Eisenhower Awards for Excellence (for large prime contractors who use small businesses as suppliers and contractors)
- Services winner
- Manufacturing winner
- Research and Development winner
Facebook Live with SBA Administrator Linda McMahon
10:30 am – 11:00 am ET
Administrator McMahon will share her story and tips on how to make your business a success. Engage in the chat by submitting your questions.
National Small Business Week Road Tour
May 3rd – 5th
The National Small Business Week Road tour will begin in Indianapolis, In and make its way to Arlington, TX and finally concluding the tour in Fresno, CA. Participants will have the opportunity to tune in to hear inspiring stories from keynote speakers and learn ways to become a much more successful entrepreneur.
For more information on how to boost your small business, contact Fast and Easy Funds for a small business loan in South Florida!
It’s not a pleasant experience. You walk into a bank or lending institution with your business plan in place, references and other necessary documents to show that you’re a serious and motivated entrepreneur. Still, the dreaded question needs to be answered. “What’s your credit score?” It’s a burden that brings stress to many aspiring entrepreneurs and unfortunately, one that haunts millions of Americans today. The bottom line is that most individuals have poor credit. Although having a bad credit history turns away most small business lenders, there are those who will approve loan applications, but with severe business loan penalties attached.
One of the downfalls of applying for a small business loan with bad credit is that interest rates are higher than that of applicants with excellent credit histories. This of course is a deterrent for entrepreneurs of small business, but in addition to the high interest rates, small business lenders may also tack on certain business loan penalties for paying off a debt in full early.
A prepayment penalty is a fee charged when a small business loan is paid off before the scheduled date of the last payment. Because the small business lender doesn’t receive the entire interest they would have received if the payment schedule had been kept, a prepayment penalty is put in place to recoup some of the lost profits.
If the interest rates are low, it could be preferable to pay off the loan early. In other cases, where the rates are high, spending capital on business loan penalties may be a waste and would be better served elsewhere. Regardless of the case, anyone applying for a small business loan with bad credit should be aware that options are available to them. They must simply find the right small business lender and shop for the best rates.
Bringing a business from one stage to the next takes time, resources and most of all, business capital. After locating the best small business lender in Florida, and acquiring the extra funding, take measures to make your newfound cash flow work best for your business.
One of the main reasons for applying for a small business loan is to purchase new inventory. This, of course, is assuming that sales have been strong and you’re predicting a growth in demand going forward. In this case, it makes sense to have inventory supplies readily available to meet customer needs.
Every small business owner hopes to become successful enough to expand into additional territories. This requires a substantial amount of money, making a small business loan an effective option for entrepreneurs looking to make a smooth transition.
There’s no better way to satisfy a consumer base than to fully understand what it is that they want. Businesses that have managed to grow have done so by investing revenue and/or outside capital into research and development. The more information a business can acquire about the market it is selling to, the better its position will be among competitors.
A company is only as strong as the employees that make up its staff. There comes a point where an entrepreneur takes on too much of a workload and needs to hire skilled employees to help out. Instead of utilizing profits during this stage of growth, taking out a small business loan can be a preferable option.
One of the best ways that an entrepreneur can utilize a loan is by purchasing equipment that will better enable them to perform. For example, an auto mechanic with his own body shop would find purchasing new machinery to be a wise investment, as he will be able to provide more services and take on additional customers.
Looking for a trustworthy lender? Contact Fast and Easy Funds today for a small business loan in Florida.
In order to reach the next level of success while growing a business, entrepreneurs will eventually have to seek outside funding options such as a small business loan. Although taking on debt during critical stages of growth can be a tough pill to swallow, it’s perfectly common and in some cases necessary. If you find yourself requiring additional capital to cover the costs of expansion, inventory replenishment or increasing staff, then these guidelines should help you find the best deals on small business loans.
- Raise your credit score as high as you can and/or acquire a co-applicant who has a high credit score. Small business lenders will approve loan applications with higher success rates if the applicant’s credit score and history shows financial responsibility. Additionally, applicants with higher credit scores are eligible for loans with reduced interest rates, giving them the option to choose between small business loans for one that is most favorable for them.
- Organize your business plan with as many details as possible before applying for a small business loan. You want to show that you are investable as much as possible and having a solid, well placed business plan demonstrates a certain degree of fortitude. Small business lenders want reassurance that the individual(s) borrowing their money is going to put it to good use and make it a worthwhile partnership for both parties.
- Shop for small business lenders who specialize in small business loans. Not every financial institution has your best interests at heart. Shop for a small business lender who not only understands the needs of a small business entrepreneur, but encourages their growth.
The goal of every business is to turn a profit at every corner and capitalize on success with further success. The reality is that taking on business loans is common practice and not something that companies looking for additional funding should steer away from. Temporary debt for long term gain is a sacrifice that aggressive entrepreneurs are willing to make. Here’s a list of times when companies should turn to an online business lender like Fast & Easy Funds for capital:
The best time for a company to seek business loans is when they are having success and looking for ways to increase that success. Company expansion is a fine way to make that happen. When a company is planning to expand into new territories, it’s likely because they’ve established their brand and consumers are already aware of what they have to offer.
A primary business expense that owners have to manage is the purchase of inventory. This is another time when applying for a small business loan is a great idea, as inventory can become costly since companies must replenish their supplies in large quantities. The reason why an owner may prefer to utilize funding from a lender as opposed to business revenue is that chances are it make take time to recoup profits after purchase.
Employee salary is another one of the major business expenses owners must account for. Small business owners in particular may start off wearing multiple hats, but they will need to add help as their business grows. Salary, medical, dental and other items can turn into tens of thousands in expenses annually, in which case a business loan is ideal to help cover the immediate costs of adding an employee until profits rise.
As part of any small business loan application process, businesses are asked to provide information to banks and lending institutions to help them determine the profitability of the company and the likelihood that they will get their money back. For businesses, especially startups, providing loan collateral is a great way to gain approval. The following is a list of items that are recommended for use in providing banks or online credit lenders with business loan collateral:
- Personal Savings and Cash Deposits
The famous expression goes, “You have to have money to make money.” That statement holds true when seeking a small business loan. Banks view personal savings, certificate of deposit, and other financial accounts as an approved form of collateral and most importantly, sees the business as a low risk investment when the owner can readily display an ability to pay all or at least some of the loan back.
- Physical Property
Some of the most commonly used forms of collateral that owners of businesses use to secure a small business loan include homes, vehicles, equipment and sometimes inventory. Banks and lending institutions want to be sure that if they don’t receive payment for their loan, they can at least liquidate the physical property and recoup their cash investment.
- Accounts Receivable
For companies that have a list of clients that they bill for services, they may be able to use their accounts receivable as loan collateral. In order to make this work, the owner will need to provide a balance sheet along with a track record of sales in order to show proof of value to the lender.
Ok, you’ve got your business plan in place, you’ve outlined your financial statements, and you know how much money you need from your small business loan, and exactly how you plan to spend it. The only issue is that you have bad personal credit due to some financial mistakes you’ve made in the past. While this is not necessarily a deal breaker, having a low credit score is a concern for banks and lending institutions. However, if you turn to an online lender like Fast & Easy Funds, your chances of securing a loan are higher than through a bank.
First and foremost, business credit and personal credit are not at all the same thing, and depending on the type of business you’re launching, each can play a different role in securing a small business loan. An individual applying for a loan with a poor personal credit score is going to find themselves challenged with proving that they’re able to repay the loan. Banks are going to take everything into consideration when deciding whether to approve a loan application and regarding sole proprietorships, personal credit can sway their minds towards one direction or another.
Additionally, business Intelliscore Plus from Experian may combine your credit history and utilize it to determine your business score. These blended scores are used to determine the risk of a small business. Banks and lending institutions prefer to invest in businesses that are near certain to be profitable, therefore it’s vital to minimize the risk potential as much as possible when seeking a small business loan from a bank, or try your odds with an online business loan provider with more leniency.
It is seldom that a growing business finds itself in a position where it doesn’t need to obtain capital from a bank, investor, or lending institution to meet certain business needs. There comes a time when a company needs to expand its line of products and services or build new stores in new territories. No matter the venture, companies are going to be the tasked with acquiring funding and to do so, business credit plays a large factor in the business loan approval process.
About 6 in 10 startup businesses use personal credit or savings as their primary means of funding for business purchases. Although it may seem like a great idea initially to use your own capital for launching your business, it can put entrepreneurs at a disadvantage. Building business credit gives a company financial leverage and flexibility in the future. Companies that have established strong relationships with banks and lending institutions are able to secure lines of credit, lease equipment, finance company vehicles and most importantly, obtain business loans and credit cards without putting their personal credit at risk.
Owners of startups are encouraged to take advantage of business loans from online lenders like Fast & Easy Funds early on when their business is in its critical stage of growth. Doing so then allows for them to have more negotiating power later when they truly need additional capital to finance business endeavors. Additionally, a business with an established banking history may potentially be valued much higher in the event that the owner is looking to sell the company or acquire investors.