Many veterans in this country come back from active duty and start their own business. Many of these patriotic entrepreneurs are disciplined from their military life and are committed in their business life as well. Unfortunately, the economy is very cyclical and a lot of these businesses come under hard financial times. Often these veteran business owners cannot meet the financial requirements of a business during these bad times and look for a business loan. The problem today is that many banks are not willing to fund any type of business, even if the owner is a veteran. It is for this reason we are constantly seeing many local politicians focusing on legislation targeted at supporting veterans in business and different financial products developing in the private sector.
A recent piece of legislation, 2013-S 0153 out of the state of Rhode Island has been introduced by Senator Doyle proposing a program providing business loans for combat veteran owned businesses. One feature of the business loan program is to give anywhere up to fifty thousand dollars per application and up to one million dollars per year for veteran owned businesses. Additionally, the bill calls for the Economic Development Corporation to join the SBA and other private financing companies with business plan assistance as well as leveraging funds for local startup businesses for veterans.
Unfortunately, this type of legislation often fails to get passed and many of these veterans find it impossible to acquire a business loan. The main reason that many veteran small business owners fail is that they do not know where to find a business loan beyond banks or the government. There are many private lending firms willing to provide business loans for veterans.
One of the main business loan options available for veterans today is a merchant cash advance. This type of financing is an exchange where a business owner receives an upfront amount of funding in advance of future credit card sales. Any veteran business owner is eligible to apply and the application process is fast and easy. There are also no credit requirements so any veteran with bad credit does not have to worry about being declined because of their credit history.
What makes the merchant cash advance so attractive as an alternative to business loans is that the funding can be used however the veteran business owner sees fit. The funding can be used to purchase new inventory for better pricing. It can be used for acquiring a new location, new equipment, or even pay off existing debt to stop creditors from putting pressure on the business. It can even be used to hire new employees or any other strategic expansion moves. The point is that many veteran business owners can have access to additional working capital to improve or expand their existing business.
Many veteran business owners today are experiencing tough economic times and it is hard to find business loans. Some local politicians are making a commendable effort but it is not necessarily enough. One solution becoming more popular today is a merchant cash advance. It has a fast and flexible application process and available for business owners even if they have bad credit. The more veterans have access to capital the more likely there will be successful veteran owned businesses.