Thinking of starting a business? If you have served in the military, you may be eligible for small business loans for veterans that can help get your business idea off the ground, or that can help an established company gain traction. Veteran-owned businesses have taken a dip in recent years, usually due to a lack of resources for entrepreneurs. The latest GI bill provides for service men and women and supports small business loans for veterans.
Here is what you should know:
Conventional Lenders
Whether you are a veteran or not, conventional loans may be tricky to acquire. First, you need a lot of documentation, and eligibility can be stringent. Thankfully, you have other funding options.
The Small Business Administration (SBA)
There is a misconception that the SBA provides money for business loans. While they play an integral role in accessing SBA funds, they are not the actual lender. You will borrow from another lender- like a bank, credit union, or alternative source- that offers loans backed by the SBA, or Small Business Administration.
Before You Borrow
Don’t borrow money without a distinct purpose in mind. That is, figure out what you will use the money for ahead of receiving the loan. Ask yourself how the money would be best utilized, whether it is for a rainy-day fund or new equipment- the choice is yours. This will also help to tease out the best sources for borrowing money that fits your needs.
Alternative Funding Sources
Depending on the nature of your needs or the type of business that you own, consider some additional, alternative types of funding, too. This includes:
- Business credit cards
- Merchant cash advances
- Invoice factoring
- Equipment financing
- Line of credit.
Savvy entrepreneurs should consider options outside of a traditional small business lender- including these and alternative lenders. Talk to the professionals at Rustwood Capital to learn more about small business funding for Veteran owned companies. Remember that often eligibility and interest rates come down to your own personal financial health; talk to a lending professional to learn more today!
