Chat with us, powered by LiveChat

Lesser Known Small Business Financing Options for Veterans

With Veteran’s Day and National Veterans Small Business Week occurring earlier this month, now is the right time to talk about alternative small business financing options available to U.S. armed services members. As featured on the popular television program “Shark Tank,” military veterans can make successful entrepreneurs and small business owners by applying the discipline, drive and determination learned on the battle field to the competitive world of business. The fact that 10% of all small businesses are launched by military veterans is evidence of this.

Securing Small Business Loans Can Be its Own Fight

Small business financing for veteransYet securing funding for any small business can be its own struggle for even the most trained and prepared soldiers. When applying for small business loans, banks will ask for your FICO score and for you to put something down as collateral. Chances are, if you just got back from deployment, you probably don’t have much in the way of assets. Even if you do, many banks want to see a long-term history of effectively running a business before they’ll issue a loan.

The SBA and Its Small Business Financing Options

The U.S. Small Business Administration does have programs available for veterans seeking small business finance yet they are limited regarding what they can offer and can take quite a lot of time. The SBA’s new Express Loan Program, which has offered zero or discount fees for veterans, may be worth pursuing. It was formed to provide a fast, three-day response time to loan applications. Other programs such as VetCap and Boots to Business provide training, workshops and other veteran business financing options.

The Option of Invoice Factoring for Veterans

Though not exclusive to military veterans, invoice factoring is a small business funding option that many are not aware of. It is not based on your credit score, your assets, your ability to sign over collateral, or even how many years’ experience you have running a business. Invoice factoring works by providing you with cash for your current invoices; it does this by assessing the trustworthiness of your clients. So if your clients have excellent credit, you likely qualify. If the federal government is your client, you can also apply for government contract financing. A significant number of military veteran small business owners’ work as government contractors.

Related Factoring Posts

Get started now. Apply online
Or call us anytime 24/7 at 800-672-3844.

Se Habla Español


About the Author:

Robert Bernfeld started in the commercial finance industry in 1974. His early years included positions with Aetna Business Credit and Foothill Group. During the next thirty five years. Mr. Bernfeld established both equipment leasing and accounts receivable factoring companies. He partnered in founding Business Facilitators, Inc. in 1999. Mr Bernfeld graduated from the University of California, Riverside in 1974 and received his Juris Doctorate from Loyola University School of Law in 1977.

| View More Posts By Robert Bernfeld