On Friday, the US Small Business Administration and the Federal Reserve Bank of New York reported that military veterans have more difficulty getting access to capital than non-veterans. According to the report, veterans are more likely to receive less than the amount of credit sought, have lower approval rates, and get access to capital more slowly than their civilian counterparts. Our veterans acquire and hone skills through their military service such as teamwork, leadership, self-discipline, perseverance, and crisis management. We're intrigued to learn more about the root causes behind veterans' reported lack of capital access.
The veteran community represents an important, yet under-served component of the financial services market. Data cited in the report stated that in 2012, there were "2.5M veteran-owned businesses generating $1.1T in sales and $195B in annual payroll." Since that time, these numbers can only have grown.
We encourage veteran entrepreneurs to check out our friends at StreetShares for financing options and Joust Bank. StreetShares provides business loans and financing for veterans, while Joust helps entrepreneurs with a banking toolkit including invoicing and accounts receivable, streamlining the process of getting paid. Both organizations are veteran-owned and run, so they know firsthand the kind of quality customers veterans can be.
Read more about it here.