When soldiers leave the military and become veterans, many choose the path of entrepreneurship and running their own business. While they may have the discipline and drive to succeed in business, veterans sometimes have greater difficulty obtaining approval for traditional loans compared to non-veterans. Even when approved for traditional loans, veterans must submit more documents and tend to receive less in business financing than other applicants. We explore some of the reasons for this below.
Reasons Veterans Struggle with Business Financing
As a group, veterans apply for smaller loans than people who have not served in the military. Banks and credit unions may not find a loan of less than $100,000 a worthwhile investment as many are accustomed to amounts that can reach into the millions.
Another struggle among would-be veteran business owners is that they did not have as much opportunity to build their credit while on active duty military service. Although the credit they do have may be fine, it often does not give them a high enough credit score for approval of traditional loans.
Yet another reason veteran entrepreneurs struggle with business financing is that they simply do not understand all options available to them. This includes special loan and grant programs specifically for military veterans. When a veteran applies for a bank loan and the lender denies it, he or she may put off the dream of business ownership entirely. The longer a person served in the military, the less they seem to understand how to obtain financing with traditional loans.
Evolt Capital Has You Covered
Whether you have just started researching business financing or are at a point of feeling discouraged due to a lack of options, we can help. Please contact Evolt Capital today to request a consultation where you will learn more about the many financing options available to you as a veteran of the United States Armed Forces.