Kabbage takes pride in delivering access to small business loans for our country's veterans
With more than 21 million veterans in the U.S., veteran-owned businesses are on the rise. Currently, one out of every 10 businesses in the U.S. is veteran owned, and the numbers are continuing to grow.
Many previous loan initiatives like the SBA Veterans Advantage and Patriot Express Loan Programs that were created to assist veteran entrepreneurs have expired in recent years.
At Kabbage, we're honored to play a part in supporting veteran entrepreneurs. We provide veteran business loan options to help this exceptional population get the working capital they need to flourish.
When you're an entrepreneur starting your own businesses, you'll likely need financing from outside sources from time to time. You need cash for essentials like inventory, payroll, equipment and marketing. Rather than dipping into your profits, using a business loan can help you cover your costs while keeping your cash flow intact.
Business loans can be extremely beneficial to smooth fluctuating cash flow during a growth period or to prepare for a busy season. If you're looking to borrow money for your business, carefully consider how you will use the funds. If you know that taking the loan will put you in a position to pay back the funds quickly, a small business loan for veterans can be a great option.
Before signing on the dotted line, it's important to have a detailed business plan to ensure your extra working capital will drive revenue that ultimately helps you pay the money back. Create a plan of action for how to use your line of credit and how you will repay it.
Each of the funding options below has pluses and minuses, so it's important to research them thoroughly to decide which is the best fit for your business.
Business line of credit: A line of credit is an arrangement with a financial institution that establishes a maximum loan the lender will allow the borrower to take. You can withdraw any increment from the line of credit at any time, as long as you don't exceed the maximum set in the agreement. A business line of credit is similar to a credit card: you use it as you need it. You make payments on a regular, predetermined schedule and you can borrow or use more as your principal is paid down.
Revolving line of credit: Revolving credit is a flexible method of borrowing money. Instead of borrowing a fixed amount of money all at once, revolving credit allows your business to borrow working capital in increments that you need, up to a pre-approved limit. Revolving credit is an important way for small business owners to keep operations going smoothly with the ups and downs of sales, seasonal changes and occasional cash flow shortages. Getting revolving credit can enable your business to pursue opportunities quickly, even when you don't have funds available to invest. As long as you make your minimum payments and limit your debt to what you can reasonably pay back or afford, revolving credit can be an effective cash flow management tool for your business.
Peer to peer loan: Peer to peer lending is an online forum where a platform matchers borrowers with investors. Borrowers complete an application and receive an offer for credit, typically from the banking partner of the platform. Companies can then invest in the loans that have been offered to borrowers. Some typical characteristics of peer to peer loans include:
Short-term business loan: Short-term loans are designed to meet immediate financing needs, like bridging gaps in cash flow, dealing with unexpected needs for extra funding and taking advantage of new business opportunities. Rather than pulling funds from other parts of your business, you can cover your costs with a short-term loan while keeping your daily accounts payable intact.
Business credit card: A small business credit card is one way that business owners can pay for the various business-related expenses they incur. Small businesses can help conserve cash flow by using a small business credit card instead of cash for the items they need.
Working capital loan: Working capital is the cash available for the day-to-day expenses of running a business. This helps measure a company's efficiency and short-term financial performance. Net working capital is a calculation of current assets minus current liabilities. A working capital loan allows you to continue your daily operations without tapping into your cash flow.
Microloan: Microloans are small loan amounts, generally offered to those without stellar credit or the collateral typically required for a traditional loan. The Small Business Administration created a Microloan Program to foster growth for small business owners. Microloans are provided to small businesses through nonprofit organizations across the U.S. Microloans are available for up to $50,000, with the average amount granted being around $13,000.
A veteran small business loan can help cover expenses as you establish and maintain your small business. Some of the most common ways veterans use business loans include:
At Kabbage, we are happy to offer veterans access to the working capital they need to sustain and grow their businesses.
With Kabbage, you apply online or through our mobile app by connecting information generated through accounting data, online sales, shipping and dozens of other sources. We use simple, meaningful data to assess your business and do not require elaborate documentation that takes you extensive time to gather. We provide an automated decision and give qualified small businesses ongoing access to lines of credit of up to $250,000. Customers can withdraw any increment they need up to once per day and can access their accounts online or through our mobile app.
Kabbage is TRUSTe certified and A+ rated by the Better Business Bureau. Since Kabbage began offering access to financing in 2011, we have provided more than $3 billion to nearly 100,000 small businesses.
The Office of Veterans Business Development, part of the Small Business Administration (SBA), offers a number of programs and services to support veteran entrepreneurs and military spouses through training, mentorship, access to capital, preparation for opportunities in federal procurement and connections within commercial supply chains and disaster relief assistance.
Managed by the SBA, Boots to Business provides vets training on how to start and grow a business with a special focus on the areas veterans most need to consider. The program can be taken as a two-day classroom course or an eight-week online course.
Hivers and Strivers, an Angel Investment Group, invests $250,000 to $1 million in start-ups founded and run by graduates of U.S. Military Academies. The group works closely with its network of investment partners to broker deals for the entrepreneurs when additional investments are needed.
The Veterans' Opportunity Fund is a venture capital fund formed to invest in businesses that are started, owned and/or managed by military veterans. The investment size of the portfolio is up to $3 million, but a business that is seeking funding must have early revenue or have a product or service that can be evaluated.
Sponsored by the SBA, V-Wise is a three-day conference that trains women veterans on starting and growing businesses and provides great networking opportunities.
SCORE, a leader in providing mentoring and training to entrepreneurs, helps our veterans transition to life as entrepreneurs through its Veteran Fast Launch initiative. This program provides free software and services combined with SCORE's mentoring program to help accelerate the ability of veterans and their families to start and succeed as small business owners.
The Entrepreneurship Bootcamp for Veterans (EBV) national program offers training in entrepreneurship and small business management to post-9/11 veterans and their families. The program's goal is to open the door to economic opportunity for our veterans and their families by helping them develop and sustain an entrepreneurial venture.
Qualify for a line up to $250,000
Accessing small business funding shouldn't be complicated or time-consuming, so Kabbage developed a simple way to get up to $250,000.2.