Veterans who served the country well are sure to be looking for exciting career opportunities upon leaving their chosen armed forces sector. Not every veteran ponders taking a job working for someone else. Launching a small business might be the career path a sizable number of veterans opt to explore. It goes without saying starting a new business comes with a great deal of expense. Borrowing funds present a solution for those may lack liquid capital.
Veterans, like so many other people in the United States, are at the mercy of their credit scores when it comes to taking out a loan. Veterans with bad credit should not feel despondent. Bad credit lending opportunities are available and accessible.
Duration in Business
Businesses that have been in operation for one year or more are more likely to be approved for loans. The reason is the calendar year demonstrates exactly how much revenue the enterprise is generating. A small business open for less than a year reflects ambiguous revenue levels.
Yet, veterans whose small business enterprises are new ventures do not need to feel they are bad lending prospects. Several different funding sources exist and can be tapped. And yes, these sources are able to assist veterans whose credit scores are very troubled.
A credit score in the 500 range is not exactly a stellar one. In truth, such a credit score is disastrous. Those suffering from a 500+ credit score will find their options severely limited. One available option comes in the form of Kabbage, an alternative lending business.
Kabbage facilitates lines of credit via online applications. Those with very bad credit need not worry when applying with Kabbage since this lender does not take credit score into account.
The minimum amount of money a business must generate to be approved by Kabbage is $50,000 per year. The available loan amounts are $2,000 to $100,000. The APRs are very high: 24% to 99%, which should be expected when an applicant has poor credit. Repayment may be required in as little as six months, but a year is possible.
OnDeck is a similar lender and one that is less costly. Loans amounts from $5,000 to $500,000 are offered. APR rates are 9% to 99% and loans terms can run as long as 36 months.
SmartBiz and 600+ Scores
A 600+ credit score does not exactly leave bank administrators with a positive impression. Specialty lenders such as SmartBiz do look favorably upon applicants with a 600 or more credit rating and possess other basic criteria.
To work with this lender, a business must be in operation for at least two years. So is $50,000 in annual income. The applicant must also be eligible for a Small Business Administration (SBA) loan. The issue of the SBA loan might be the biggest sticking point. The rules and requirements are very strict. Meeting the requirements might be the hardest part.
A 600 score makes the applicant eligible for a loan in amounts between $30,000 and $150,000. A 650 personal credit score is required for loans more than $150,000 up to $350,000. Interest rates in the 8% range absolutely make SmartBiz an attractive option.
Other Lending Sources
Bond Street may approve alone fairly quickly and with low-interest rates. The service, however, requires a significant amount of annual revenue in order to qualify. Two years of business operations are also necessary.
Credibility Capital shares similarities to Bond Street, but this service has easier application requirements. The drawback is the amount of approval loan funds is lower than what Bond Street presents.
Entrepreneurs may feel that they are rushed in order to get a loan. They should not take this attitude. Being deliberative in the search for a bad credit loan is a much preferable strategy. The deliberate approach could lead to discovering a much better loan offer with exceptional terms, conditions, and interest rates. Rushing and being impulsive could undermine the desired outcome. Be careful and deliberate and make the best decision.