Are you a veteran running a small business? Do you need to get working capital like a merchant cash advance (MCA) for your business to build a profitable company? What are your choices for loan alternatives and small business funding for veterans? Just read below to find them.
Small Business Loan Options for Veterans: Merchant Cash Advance
Here’re several small business funding options that you, as a veteran, can obtain so to grow your business successfully:
- SBA (Small Business Administration) VA (Veterans Advantage) Loans
Veterans can apply for a VA loan from the Small Business Administration. Thanks to the Veterans Advantage program, you can get fee reductions on SBA loans. You can get them through partner banks, credit unions, and other lenders.
To qualify for this, the given business must be 51% or more owned and controlled by an individual(s) in one or more of the following groups:
- Veterans (other than dishonorably discharged);
- Service-Disabled Veterans;
- Active Duty Military service member participating in the military’s Transition
- Assistance Program (TAP);
- Reservists and National Guard Members; or
- A Veteran’s current spouse, service member of Active Duty, or any Reservist or National Guard member; or widowed spouse of a service member who passed away while in service or of a service-connected disability.
Private Business Loans
Veterans can also apply for a private business loan from a credit union, bank, or another lender. The fees and interest on these loans will be a bit higher as compared to VA loans. However, with good credit or a track record of running successful businesses, you can obtain a private business loan without major challenges.
- Merchant Cash Advances (MCAs)
If you are a first-time business owner, an MCA from a reputable business funding provider like FirstAmericanMerchant.com is ideal for you. Unlike, a VA loan or a private business loan, which are more difficult to obtain, an MCA gives you quick and easy access to working capital.
First American Merchant is an award-winning alternative online lender that specializes in the high risk field. FAM offers unmatched business funding solutions like a merchant cash advance to both traditional and high risk merchants of any size. The rates are the lowest in the space.
With an MCA, instead of making monthly loan payments, you simply pay a percentage of cash and credit card sales back to the MCA provider. By the way, an MCA isn’t a loan: it’s simply a sale!
- Military Economic Injury Loans
If you’re struggling financially, you can also apply for the Military Reservist Economic Injury Disaster Loan (MREIDL). This program offers 4% interest loans, which are available to veterans within 1 year of being released from active duty. They allow for terms up to 30 years. Remember that the program requires collateral for loans more than $50.000.
Veterans with a credit score under 700 can apply for StreetShares. StreetShares offers loans that vary from $2.000 to $100.000, as well as lines of credit that vary from $5.000 and $100.000 for terms between 3 to 36 months. You can’t borrow an amount that’s greater than 20% of your annual revenue. APRs start at 8%.
As you see, there’re a number of business funding options for veterans. Just walk through all the different places to find the right type of financing for your business.