As a veteran, you have demonstrated many of the core qualities that will make you a successful business owner, including: strong work ethic, dedication, self-discipline, sacrifice, and perhaps most important of all, remaining committed to a vision despite hardships, obstacles and setbacks.
However, one area that might not currently be part of your advanced and impressive skillset, is raising capital — especially since as you may have already discovered, banks and credit unions are wary of small business lending. For example, banks typically require exceptionally high personal and business credit scores, along with several years of verifiable business history — which many veterans do not have, since they are currently transitioning into the workforce (and in some cases, from working as a full-time employee to self-employment).
Fortunately, there are several viable options regarding business loans for veterans. Here are 4 quick and easy tips to help you get the capital you need, and frankly, that you deserve due to your service in defense of our country at home and abroad:
Determine if you qualify for debt relief.
Before exploring various business loans for veterans, see if you qualify for personal debt relief per the Servicemembers Civil Relief Act (SCRA). For example, you may be entitled to lower the interest rate on debts incurred prior to your military service, such as a car loan, mortgage, credit cards, and so on.
Analyze how much capital you need.
Next, identify how much capital you need at this time for your business. It’s important not to over-estimate this amount, since you don’t want “dead money” sitting in your bank account getting eroded by inflation.
Determine your borrowing and repayment horizon.
Short-term loans are generally defined as those that have a repayment period of less than a year, while long-term loans are generally defined as those with a repayment period of more than a year. Obviously, the duration directly impacts your total cost of borrowing, and the amount that you will pay back in each installment (i.e. a longer duration means a relatively higher total cost of borrowing, but a lower installment amount). Ensure that you choose a borrowing and repayment horizon that is manageable and realistic, or else you could put your business at risk vs. strengthen it.
Investigate all available business loans for Veterans.
Veterans have many options available beyond conventional bank and credit union loans — which, as noted above, may not be an option if your credit score is not exceptionally high, and if your business has not been operational (and profitable) for at least a couple of years.
For example, at National Business Capital we are proud to offer veterans a wide range of business financing solutions, such as: Working Capital Loans, Equipment Financing, Invoice Financing, Merchant Cash Advances (ideal if you operate a retail operation that conducts most transactions via credit/debit card), and more.
In addition, we are fine with impaired or bad credit, and only need to see a few months — rather than a few years — of operational history (which does not need to be cashflow positive).
To learn more about our business loans for veterans, contact the National Business Capital team today. We would be honored to speak with you, and provide the support you need to keep your business strong and successful for the long-term future.