After my first and even my second enlistment in the Navy, I still had not bought a home. I had either been living in base housing or deployed. Additionally, I had only a marginal amount of money saved and no real assets. How is my past situation related to the current world franchise financing? By Jon P. Skroder
After my first and even my second enlistment in the Navy, I still had not bought a home. I had either been living in base housing or deployed. Additionally, I had only a marginal amount of money saved and no real assets. How is my past situation related to the current world franchise financing? To obtain funding, comparable credit and net worth are essential factors. To have equivalent credit, one must have had a loan of the same amount or higher than the business loan they are applying for. This is typically satisfied by a previous home purchase. A person’s net worth should also equal the amount of the loan. Equity in a home is usually a large part of the equation to satisfy the net worth requirement. For Soldiers, Sailors, and Marines, this can be a challenge. Many active-duty members go an entire military career without ever buying a home. Base housing has improved immensely both in quality and availability. When coupled with frequent moves, most see little purpose and miss out on obtaining the qualifications listed above.
Active-duty military members transitioning to the civilian community make ideal candidates to start a new franchise business. Their work ethic, motivation, ability to follow orders, directions, and checklists have prepared them far beyond the typical civilian candidate. Unfortunately, most are not qualified because of the comparable credit and net-worth requirements for a business loan. This is the entire reason My Military Financial Services established the M5 Loan®. M5 stands for Military and represents all five branches of service. It was exclusively designed for and is marketed to active-duty personnel, veterans, or their spouses. The M5 Loan allows active-duty, transitioning active-duty, and military members with less than five years of separation from active-duty service to receive reduced net worth and comparable credit requirements for the SBA 7a loan program, making it easier to qualify.
The M5 Loan is perfect for service-based franchise options. It provides funds for the initial purchase, as well as a substantial amount for working capital. Undercapitalization is the number one reason new businesses fail. The M5 Loan creates liquidity to assist in covering expenses in the first crucial years of ownership.
Learn more about the M5 Loan and how we can help secure funding for members of the military family by calling 833-444-VETS, email email@example.com, or visit mymilitaryloans.com.
– Jon P. Skroder
Senior Chief Petty Officer Jon P. Skroder (Retired) is a 26-year Navy Veteran (1993-2019) and current COO of My Military Financial Services. Assignments include NAWS, China Lake, CA; Pacific Missile Range Facility, HI; HSL-42 NS, Mayport, FL; Weapons and Tactics Unit NS, Mayport, FL; HSL-48, Mayport, FL; HSM Weapons School Atlantic, Mayport, FL; HSL-37 KBay, HI; HSM-40, Mayport, FL; MED/MEF deployments aboard the USS San Jacinto (CG-56) and the USS Monterey (CG-61) and 7th Fleet support deployment aboard the USS Michael Murphy (DDG-112).