When you’re ready to finance your business, there are several ways to approach it. In our “Ultimate Guide for Veteran-owned Small Businesses,” we outline the three main types of small business financing: self-financing, equity, and debt financing — with debt financing being the route many companies take once they’re an established business with some revenue under their belt.
Patriot Express Line of Credit: A Patriot Express Program Alternative
The Patriot Express Loan was a very popular SBA program that funded $633 million in SBA-guaranteed loans. Veteran small business owners could get large loans at a very low interest rate, with low fees. Unfortunately, it expired in 2013.
Fortunately, there are other programs that exist to help veteran small business owners get the funding they need. The SBA has since released a similar loan, and StreetShares has created it’s own veteran funding program — the Patriot Express® Line of Credit (not associated with the SBA).
How Our Veteran Small Business Loan Works
Our Patriot Express® Line of Credit works like any other small business line of credit would. Similar to applying for a personal credit card, when applying for a line of credit your lender will grant you access to a specific amount of funds depending on your needs and credit history.
In fact, lines of credit like our Patriot Express program are often referred to as “revolving” because they can be tapped into repeatedly. Also, borrowers are not charged any interest unless the funds are tapped into.
For example, if you have $50,000 in an available line of credit and you only need to take out $10,000, you’ll still have access to the remaining $40,000. And If you pay back the $10,000, you’ll still have access to the entire $50,000 without having to reapply.
Small businesses may need to take out an alternative business loan for many reasons. Some businesses may be cyclical or seasonal, and some may need it as working capital or to make payroll.
Scale Small Business Growth with a Line of Credit
If you’re a veteran small business owner looking to scale and in need of an alternative business loan, the Patriot Express Line of Credit might be a good option to explore.
Many companies, like MN8 Foxfire/LumAware, have become profitable after a few years and are looking to scale.
In MN8 Foxfire’s case, even though they had steady orders coming through, their buyers were paying them at a slow pace and all of their cash was tied up.
At times Zachary Green, their CEO and co-founder, wasn’t sure if they’d be able to make payroll due to the lag. “It’s very difficult to grow and be profitable at the same time and that’s where StreetShares came in,” he said.
Using StreetShares as his alternative business lender, Zachary has taken out a Patriot Express® Line of Credit several times. He’s used it for pay his employees while waiting on payment for an order to come through. He’s also drawn on his line of credit to pay for inventory upfront when he knew he had a purchase order to fill.
As a Marine Corps Veteran, Zachary applies many of his military experiences to the business world.
“In battle, you want to make sure your supply can keep up with the attack. That’s basically how we’ve been able to work with StreetShares. We’re using a line of credit as our supply so that we’re on the front line of war. We want to make sure we’ve got enough supply to keep up with the demand. StreetShares has been a great partner. We’ve taken out four lines of credit so far and look forward to working with them more in the future.”
The Patriot Express® Line of Credit is available to veterans, active duty military or military spouses (as well as civilian small business owners) who have been in business for a year or more and make at least $25,000 in revenue. Click here to qualify for free or contact us to learn more.
This communication is provided for informational purposes only. It is not intended to be an advertisement, a solicitation, or constitute professional advice, including legal, financial, or tax advice, nor is StreetShares providing advice on any particular situation.
This is not an offer of credit. All applications are subject to approval, no guarantee of funding.