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 Ace Biz Funding today to learn more about small business loans for veterans!
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 Ace Biz Funding today for a small business loan in Florida.
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.
Startups have the most difficult time acquiring online loans and the reason is simple: no credit is worse than bad credit. Startup entrepreneurs are an unproven entity, and banks and online lenders simply have no history to base their decisions on. Ace Biz Funding understands that loans for startups are difficult to acquire, so we have outlined some of the best ways for a startup to receive a small business loan.
SBA Startup Loans
The Small Business Administration offers loans for startups with competitive interest rates between 7 and 9%. However, be warned that they are not easily received and they will require a decent personal credit score, and usually some form of collateral (usually real estate). You can find the SBA startup loans here.
You aren’t just limited to loans for startups, why not try applying for a grant? There are grants available for women, minorities, veterans and so on. Search for grants and competition in your area or field. You’ll be surprise how many small business loans start from simply winning a competition.
When Does Start Up Classification End?
The truth is, no one is sure, and each online business lender has different metrics to define a startup. The truth is that no one can really agree, so it’s up to you to call find an online business lender that agrees you are still in the startup phase.
If you have tried all the above methods to secure small business loans for startups, but you have had no luck, then it’s time to consider the alternatives:
- Online Crowdfunding
- Credit Cards
- Family Member Assistance
- Consider an Investing Partner
Do whatever you can to get your startup off the ground and on the path of success.
Online business lending will not be slowing down in 2017. In fact, more loans will likely be given out this year, as the need for capital to expand businesses increases. This does not come as a shock to online lenders.
Last year was an interesting time for the lending community. For the first time, big banks took it upon themselves to enter the industry of online business loans to compete with online lenders like Ace Biz Funding. Business loans increased dramatically, and the merchant cash advance remained one of the most popular online business loans for entrepreneurs.
What 2017 has in store for us:
- For starters, most online business loans. The general consensus is that technology is speeding up the process of online lending, making it cost effective and easier for business owners to get the capital they need.
- Minority owned business are going to have more access to online business loans. Business loans for woman will be a focus for online lenders.
- For the first time in eight years, the republican party will have the presidency. For the first time in almost 100 years, one party will hold the house, the Senate and the Presidency. This should make for some interesting consequences economically, because a more fiscally conservative ideal will be held by all major branches of government. This could mean more freedom for online lenders; thus, more access to loans like the merchant cash advance.
It is certain that 2017 holds a new set of challenges for us all, but the outlook is optimistic on all sides. Learn more about the business loan options at Ace Biz Funding and allow us to make sure your 2017 is a year of positivity and growth.
Running your own business successfully is the most rewarding career path, giving you the ability to set your own hours and work towards something truly meaningful to you. The path to a running a successful business is paved with time, effort, and dedication. There are a lot of difficulties to owning a business, regardless of where it is located. However, some states create a better environment for entrepreneurship and innovation. These are some of the factors that contribute to the best states for small businesses.
Forbes released a ranking of the best states for small businesses, which were rated due to the following factors:
- Business costs
- Labor supply
- Regulatory environment
- Economic climate
- Growth prospect
- Quality of Life
The top five states showing potential for future success for small businesses in 2017 are:
- North Carolina
With all 50 states taken into consideration, Florida ranked #12 of the best states for small businesses. The lenders at Ace Biz Funding have helped a countless number of business owners get their ideas off the ground and running.
If you are considering opening your own business, here is what you need to do:
- Consider factors such as population, job growth rate, and unemployment in the area you hope to establish your service in.
- Obtain a business license from your county tax collector.
- Register your business with the Department of Revenue and the IRS.
- Contact the professionals at Ace Biz Funding for the secure loan you need to get started in one of the best states for small businesses.
The small business lenders at Ace Biz Funding understand there is a stigma around the difficulty of applying for a small business loan. That is why our application process is fast and flexible; to help boost the growth of your business. When you need extra funds to expand your company, make sure you have these four things to guarantee a fast and easy loan process:
1.The Right Lender:
You might consider requesting a small business loan from a big bank, but oftentimes these banks have lower approval rates than the business lenders at Ace Biz Funding. Not to mention, big banks have automated systems that could reject your application before a real person ever even examines it. Smaller businesses take a more personal approach to assisting you and your business goals.
2. An Accurate Credit Report:
Your credit report will help your lenders to determine your financial history and your ability to repay your loan. It is important to make sure there are no errors in your report.
3. A Solid Business Plan:
Create a business plan that maps out your goals, qualifications, and experience that will show your lenders how successful your company can be.
When asking for money, asset lenders like to see that you have a backup plan. This refers to something pledged as security for repayment of a loan. Collateral can come in many forms: real estate, inventory, equipment, and accounts receivable.
Applying for a business loan does not have to be a hassle. Use this guide from Ace Biz Funding for easy application and a fast approval process.
Ace Biz Funding knows that entrepreneurs take a serious leap of faith when starting their own company. It requires hard work, proper funding, and endless optimism. Over time, it is critical that small business owners have a solid grasp on reality to determine when things are not going well for their company, and when they need an online business loan to save their company.
How to Tell If Your Company is Going Under
Low Sales – this is an obvious sign that your company is not doing as well as it should be. Ace Biz Funding says a businesses cannot expect to succeed without a steady income and positive sales.
No Brand Awareness – When a company is doing well, people are calling, communicating, reviewing, and mentioning it. If you are noticing that no one is talking about your company, then it is not doing well or perhaps not well enough. Ace Biz Funding recommends getting on social media and doing local advertising and promotions to get your brand name out there and in the mouths of consumers. An online business loan can give you the funds required for hiring digital marketers and for advertising costs.
Your business doesn’t offer anything unique – A consumer wants to know what your company offers that is different from the next company. If you cannot confidently explain what sets your company apart from others, chances are your company is going under. These days, it is all about the company that offers the very best services or the very best customer experience. If your product is not unique, make sure that your service is unique or better than the competition.
High employee turnover rate – A business owner should beware if his or her company has a high employee turnover rate. This implies that something is not working, something needs to be adjusted, and employees have no faith in your company. If management is the problem, you may need to rehire them in order to not only keep employees happy, but also improve the moral of your business and storefront location.
Financial struggles – A successful business must bring in enough money to manage all expenses, and extra for profit. If your business is struggling for money, Ace Biz Funding can help get you back on track.
Until recently, online business lenders faced little government regulation. The Wall Street Journal reported that some companies have gotten away with increasing annual percentage rates to 100 percent or more on short-term, online business loans. Therefore, a movement toward transparency has been long awaited in the world of finance. Fortunately, the Innovative Lending Platform Association (ILPA) has pioneered the effort with their latest tool that separates good companies from the bad.
Ace Biz Funding reports small businesses can finally trust the transparency of business lenders with the newest tool, “SMART Box”. SMART Box stands for Straightforward Metrics Around Rate and Total Cost Box, and it was released in late October. It gives small businesses the opportunity to compare annual percentage rates and total amounts to be repaid for loans of the same duration, from company to company. This tool is essentially a voluntary form of self-regulation amongst lenders, and sets the standards for company practices. Right now, there are 3 versions of the SMART BOX disclosure available for comparison: term loans, lines of credit, and merchant cash advances.
Business lenders like Ace Biz Funding know transparency is an important practice of running a successful, trustworthy company. SMART Box promotes standardization and common terminology amongst lenders to help small business owners make the best decision for their company.
Small Business & Entrepreneurship Council’s Kristie Arslan said of the new tool, “As a small business owner, allowing the vital information of a funding opportunity, such as the monthly payments, total repayment amount, cost of capital, fees, and much more, to be pulled out of the fine print and presented with the SMART Box tool will greatly help me and other business owners compare options and make the best funding choices for our businesses.”