With more and more people looking to start their own businesses, finding the right financing is a vital part of the process. There are many different options that will help your business get off to the right start. Possibilities include SBA loans, HELOCs (Home Equity Line of Credit), personal funds, commercial loans, and even using your IRA or 401(k) to fund your business. When structured correctly, financing a business with retirement funds can be done without creating a taxable event or distribution and does not require debt-service as it is NOT a loan.
Funding your business with equity and not debt is one of the main reasons people use their retirement funds for starting a business or purchasing an existing business. It is a great way to not only invest in yourself, but it could also be a great way to make the often large down payments that SBA loans require. Commonly banks will require 20-25% down to obtain an SBA loan. Using your retirement funds can help you to put that money down on your new business venture.
With the current unstability in the stock market, many people are looking for options to help grow their retirement funds - investing in your own business could be one of them. For more information about the funding of a business with retirement funds contact http://www.guidantfinancial.com/default.aspx?sid=55af8bfe-097b-423c-a999-2a04ca9c840b today and ask for a free consultation to see if we can help you fund your future.
1 comments:
it great SBA Loans post.thank!
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