Best of
Best Small-Business Loans for Veterans 2020
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Our picks for
Fast cash
Kabbage and OnDeck offer fast business loans, with funding as fast as a few minutes.
Kabbage - Line of credit
Est. APR
24.00 - 99.00%
Min. Credit Score
560
Pros
- Financing up to $250,000 available within a few days.
- Accepts low credit scores.
Cons
- Rates are high compared to other online lenders.
- Must have online checking or PayPal account to verify cash flow.
- Fixed-fee structure means early repayment does not save interest.
Qualifications
- Minimum credit score: 560.
- Minimum time in business: 1 year.
- Minimum annual revenue: $50,000.
OnDeck - Online term loan
Est. APR
9.00 - 99.00%
Min. Credit Score
600
Pros
- Cash can be available within the same business day.
- Requires low minimum credit score.
- Less paperwork than most lenders.
Cons
- Fixed-fee structure means early repayment will not save interest.
- Requires frequent (daily or weekly) repayments.
- Requires business lien and personal guarantee.
Qualifications
- Minimum credit score: 600.
- Minimum time in business: 3 years.
- Minimum annual revenue: $250,000.
- No bankruptcies in the past 2 years.
Our picks for
Working capital
StreetShares, BlueVine and QuarterSpot provide working capital financing for veteran entrepreneurs.
StreetShares - Online term loan
Est. APR
8.00 - 39.99%
Min. Credit Score
600
Pros
- No prepayment penalty.
Cons
- Requires weekly repayments.
- Financing amounts limited to 20% of annual revenue.
Qualifications
- Minimum credit score: 600.
- Minimum time in business: 1 year.
- Minimum annual revenue: $25,000.
- No bankruptcies in the past 3 years.
BlueVine - Line of credit
Est. APR
15.00 - 78.00%
Min. Credit Score
600
Pros
- Offers options for businesses less than a year old.
- Cash can be available within 12 to 24 hours.
Cons
- Short repayment term results in higher payment amounts.
- Requires personal guarantee.
- Not available in North Dakota, South Dakota or Vermont.
Qualifications
- 6-month line of credit
- Minimum credit score: 600.
- Minimum time in business: 6 months.
- Minimum annual revenue: $100,000.
- 12-month line of credit
- Minimum credit score: 620.
- Minimum time in business: 2 years.
- Minimum annual revenue: $450,000.
QuarterSpot - Online term loan
Est. APR
30.00 - 70.00%
Min. Credit Score
550
Pros
- Requires low minimum credit score.
- Cash can be available within the same day.
- No prepayment penalty.
Cons
- Rates are high compared to other online lenders.
- Short loan terms.
- Requires personal guarantee.
Qualifications
- Minimum credit score: 550.
- Minimum time in business: 2 years.
- Minimum annual revenue: $200,000.
- Average at least 10 monthly revenue-producing deposits.
- Minimum $2,000 average daily account balance.
Our picks for
Expansion financing
SmartBiz provides Small Business Administration loans, which have relatively low interest rates and a 10-year repayment term. Credibility Capital is an option for larger loans up to $400,000.
SmartBiz - SBA loan
Est. APR
9.28 - 10.52%
Min. Credit Score
650
Pros
- Competitive rates among online lenders.
- Faster than getting an SBA loan from a bank.
Cons
- Must have strong financials, supported by personal and business tax returns for the past 3 years.
- Stringent rules on use of proceeds.
- Requires business lien and personal guarantee.
Qualifications
- Minimum credit score: 650.
- Minimum time in business: 2 years.
- Minimum annual revenue: $50,000.
- No bankruptcies or foreclosures in the past 3 years.
Credibility Capital - Online term loan
Est. APR
19.99 - 24.99%
Min. Credit Score
680
Pros
- Competitive rates among online lenders.
- No prepayment penalty.
- Extra monthly payments can save interest cost.
Cons
- Short repayment term results in higher payment amounts.
- Requires high minimum credit score and revenue.
- Requires business lien and may require personal guarantee.
- Not available in Nevada, North Dakota, South Dakota, or Vermont.
Qualifications
- Minimum credit score: 680.
- Minimum time in business: 2 years.
- Minimum annual revenue: $250,000.
- No bankruptcies in the past 5 years.
Our pick for
Businesses with unpaid customer invoices
BlueVine - Invoice factoring
Est. APR
15.00 - 68.00%
Min. Credit Score
530
Pros
- Finances larger invoices.
- Cash can be available within the same day.
- Accepts low minimum credit score and short time in business.
Cons
- Not for businesses that do not invoice on net terms.
- Loan amount is tied to the value of your invoices.
- Dependency on customers to pay their bills on time.
Qualifications
- Minimum credit score: 530.
- Minimum time in business: 3 months.
- Minimum annual revenue: $100,000.
Summary of Best Small-Business Loans for Veterans 2020
| Lender | Best For | Est. APR | Min. Credit Score |
|---|---|---|---|
Kabbage - Line of credit | Fast cash | 24.00 - 99.00% | 560 |
OnDeck - Online term loan | Fast cash | 9.00 - 99.00% | 600 |
StreetShares - Online term loan | Working capital | 8.00 - 39.99% | 600 |
BlueVine - Line of credit | Working capital | 15.00 - 78.00% | 600 |
QuarterSpot - Online term loan | Working capital | 30.00 - 70.00% | 550 |
SmartBiz - SBA loan | Expansion financing | 9.28 - 10.52% | 650 |
Credibility Capital - Online term loan | Expansion financing | 19.99 - 24.99% | 680 |
BlueVine - Invoice factoring | Businesses with unpaid customer invoices | 15.00 - 68.00% | 530 |
Best for startups
Lenders generally prefer to do business with established companies that have strong cash flow, and this often disqualifies startups with less than a year of operating history and little revenue.
However, you’re not completely out of luck: If you have good personal credit, your options include business credit cards and personal business loans.
Business credit cards typically provide up to $50,000 in revolving credit, meaning you can borrow and repay from the credit card as needed, and pay interest only on withdrawn funds.
Personal loans for business provide a lump sum of cash, with a fixed interest rate and repayment terms.
Both options are unsecured, meaning you won’t have to put down collateral — an asset, such as real estate or inventory — to qualify.
» MORE: Where to find startup business loans
VA loans and other financial resources
Veteran-owned businesses can also seek help through the SBA’s Veterans Advantage lending program (VA business loans), which provides fee reductions on SBA loans, including:
- No upfront fees for eligible borrowers on 7(a) loans of $125,000 or less.
- Reduced fees by 50% on 7(a) loans between $125,001 and $350,000.
- No fees on SBA Express loans between $150,001 and $350,000.
SBA loans are offered through banks, credit unions and other lenders (including lenders partnered with SmartBiz), with the SBA guaranteeing a portion of the loan if the borrower defaults.
For other financial resources for veterans, check out our list of small-business grants for veterans or personal loans for veterans.
Compare small-business loans
When you're shopping for a loan, be sure to compare annual percentage rates, or APRs, which give you a holistic picture of a loan's cost. NerdWallet's small-business loans comparison tool can help. We've gauged lender trustworthiness, market scope and user experience, among other factors to help you choose the best loan.
Last updated on April 7, 2020
To recap our selections...
NerdWallet's Best Small-Business Loans for Veterans 2020
- Kabbage - Line of credit: Best for Fast cash
- OnDeck - Online term loan: Best for Fast cash
- StreetShares - Online term loan: Best for Working capital
- BlueVine - Line of credit: Best for Working capital
- QuarterSpot - Online term loan: Best for Working capital
- SmartBiz - SBA loan: Best for Expansion financing
- Credibility Capital - Online term loan: Best for Expansion financing
- BlueVine - Invoice factoring: Best for Businesses with unpaid customer invoices
