The 6 Best Small Business Loans For Veterans: Compare Top Veteran Business Loans

Get Started With SmartBiz

Pros

Faster turnaround than regular SBA loans
Low interest rate
Accepts fair-credit applicants

Cons

Funding takes longer than other types of online loans

SmartBiz offers online SBA loans with a fast turnaround time, an easy application process, and low interest rates. Loan offerings include SBA Working Capital and Debt Refinancing Loans, Bank Term Loans (non-SBA loans), and SBA7(a) Commercial Real Estate Loans.

SmartBiz loans are most appropriate for established veteran-owned businesses with at least fair credit and two years in business. SmartBiz also says most of its approved businesses have annual revenues of $100,000 or higher. SmartBiz is a smart choice for veterans who want to get an SBA loan but are frustrated by the lengthy signup process and want a faster turnaround—as soon as a week. SmartBiz can determine your loan eligibility in just a few minutes.

2. OnDeck: Best Business Loans For Veterans With Bad Credit

OnDeck

Pros

Accepts poor-credit applicants
Same-day funding
Multiple types of financing available

Cons

Rates can be expensive

Many veterans leave the military with low credit scores because their careers have prevented them from participating in credit-building activities, such as paying off a mortgage. OnDeck is one of the few reputable small business loan providers that might lend you money if you have a credit score as low as 600. However, a lot of good-credit borrowers also get funded through OnDeck.

OnDeck offers both short-term loans and lines of credit for businesses with bad credit. OnDeck’s loans typically aren’t the cheapest, but they are quite fast—you can potentially get the funds to expand your vet-owned small business within just 24 hours, or even the same day you apply. Startups should look elsewhere for financing, as OnDeck will not lend to businesses that have been operating for less than a year.

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3. Kabbage: Best Business Loans For Veterans With Fair Credit

Kabbage Loans

Get Started With Kabbage Loans

Pros

Transparent fee structure
Monthly repayments
Low revenue requirements

Cons

Fees are front-loaded

Kabbage is another short-term business financing product that is easy for most veteran-owned businesses to qualify for. Specifically, Kabbage offers lines of credit to businesses with fair credit and higher. You do need at least one year in business, but the revenue requirements are quite low—you only need to make $3,000/month to qualify.

Each draw from your Kabbage line of credit is structured as a short-term loan, which you will pay off in monthly installments over 6, 12, or 18 months. Though Kabbage doesn’t have a prepayment penalty, it’s important to note that Kabbage loans are front-loaded, which means the majority of fees are paid in the first third of the repayment period. As a result, you won’t be able to save much money by repaying early.

4. LoanBuilder: Best Short-Term Loans For Veteran Businesses

LoanBuilder

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Get Started With LoanBuilder

Pros

No origination fee
Relaxed borrower requirements
High max. borrowing amount

Cons

Short repayment terms

LoanBuilder is a PayPal-owned lender that offers short-term business loans. You do not need to be a PayPal seller in order to qualify, but having a PayPal account makes the already-fast application process go even faster. LoanBuilder loans are also sometimes advertised as “PayPal Business Loans.” At $500,000, the maximum loan size is larger than that of many other online business loans, and veterans with poor credit and less than a year in business can still qualify.

With a maximum term length of 12 months, you will be repaying your LoanBuilder loan pretty expediently. However, LoanBuilder does not charge an origination fee, so you will receive more money upfront. On approval, funds will be deposited in your account as soon as the next business day. One thing we really like about LoanBuilder is that during the application stage, it lets you adjust your prospective loan amount and term length so you can choose a weekly repayment amount that works for you.

5. Fundbox: Best Loans For Veterans With Startup Businesses

Fundbox

Pros

Suitable for startups
Accepts poor-credit applicants
Multiple financing types available

Cons

Low max. borrowing amount

Fundbox offers two easy-to-qualify-for small business loans for veterans: lines of credit and short-term loans. Fundbox financing is available to businesses that have only been open for 6 months, and poor credit is not a problem. These short-term loans are good if you only need a small amount of capital to get your business off the ground—though loans can go up to $150,000, $20,000 is the average borrowing amount. However, you may become eligible for more funds over time.

Fundbox repayment takes place weekly, with a maximum term length of either 24 weeks (LOC) or 52 weeks (STL). So, you’ll need to pay your loan back quickly and fees are on the high side, especially for longer term lengths. Fortunately, all fees are transparently laid out on Fundbox’s website. Another positive is that Fundbox does not charge an origination fee on its term loans, and there’s no prepayment penalty for repaying early.

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6. BlueVine: Best Fast Loans For Veteran-Owned Businesses

BlueVine

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Get Started With BlueVine

Pros

Same-day funding available
Startup-friendly
Accepts applicants with poor credit

Cons

Fees can be high

BlueVine is another one of our favorite SMB lenders. It has a lending product that’s fast and easy for veteran-owned small businesses to qualify for. BlueVine offers business lines of credit services similar to the LOCs offered by OnDeck, Kabbage, and Fundbox. BlueVine accepts veteran-owned businesses with bad credit, including startups with bad credit, and best of all is that you can receive same-day funding. Once BV approves your application—your initial pre-approval decision will take about 5 minutes—you can have funds deposited in your bank account within a few hours (if you choose the $15 bank wire option).

Be aware that even though many online lenders such as BlueVine will lend to businesses with bad credit, those same lenders may offer better financing options and/or lower borrowing fees if you have good credit (and a longer time in business). BlueVine, for example, while extending 6-month lines of credit to poor-credit borrowers, offers 12-month lines of credit to more established businesses with better credit. Thus, it’s a good idea to take some steps to improve your credit score before applying for business loans.