Starting out with a thin file
Veterans who start businesses often do so right after years of service, with strong discipline and skills but a limited US business history. Time deployed or stationed away can leave a short credit record, and moving between posts can leave a patchy address and banking history. A conventional bank loan weighs those things heavily.
The review described here puts the weight on about three months of business bank statements. FICO 500 and above is considered, the credit check is soft and no tax returns are required.
Businesses veterans commonly run
California's veteran owners run many kinds of firms, and the cash-flow pattern varies with each:
- Trades and contracting. Materials and trucks up front, payment after the job.
- Transportation and logistics. Fuel, insurance and maintenance bills ahead of freight payments.
- Security and facility services. Payroll weekly, contract payments monthly.
- Food, retail and fitness. Rent, equipment and stock before the customers arrive.
- Technical and professional services. Software, licenses and a few key hires.
Getting the file ready
- Open a dedicated business account if you have not, and run revenue through it.
- Download full PDF statements for about three months.
- Match the business name and your ID on every document.
- Write one sentence on what the money is for and how it will be repaid.
Sole proprietors can apply, which helps veterans who start out under their own name before incorporating.
Be careful with offers
Some marketers target veterans with claims of special programs. Ask for the full terms in writing, find out the total dollar cost and avoid anyone who asks for a fee before funding. If you plan to use a government or VA-related program instead, those have their own rules and timelines, and they may suit a longer-term plan than a quick working-capital need.
Planning for a business after service
The discipline learned in service transfers well to running a business: clear plans, reliable routines and attention to detail. Where new owners often stumble is on the civilian paperwork: licensing, insurance, payroll setup and tax accounts. Spend time on those first, because a missed permit can stop revenue just as surely as a broken machine. Local business-support offices and veteran business organizations offer free planning help in many California communities, and they are a good place to test your plan before you borrow against it.
How much to ask for
Match the request to the use. A truck, an oven or a stock order has a known price, and a quote makes the number concrete. Funding starts at $25,000. If your need is smaller than that, a business credit card or cash on hand will likely fit better.
To apply
The application takes about five minutes. Funding of $25,000 to $5,000,000 can arrive in as little as 24 hours once your information is complete. Start your application.