401(k) Business Financing
Start your business debt-free and cash-rich.
It shouldn't be so hard to get small business or franchise financing.
Local banks decline 80% of aspiring small business owners for loans. Few people have enough money on hand to start or buy a business or franchise outright. Why struggle with these barriers when you have the money to invest in yourself?
Don’t let interest payments control your business decisions. Get funded without going into debt.
Find a quicker path to success and profitability by starting out with an infusion of cash.
What is 401(k) Business Financing?
401(k) business financing, also known as Rollovers for Business Startups (ROBS), is a small business and franchise funding method. ROBS allows you to draw money from your retirement account in order to start or buy a business without incurring an early withdrawal fee or tax penalty. This is not a loan — ROBS gives you access to your own money so you can build the life you want without going into debt.
No Interest, No Collateral, No Credit Score
401(k) business financing is an ideal method if you don’t want to go into debt, don’t qualify for a loan, or just don’t have the cash on hand to start or purchase a business. Unlike other types of funding methods, your credit score, past experience, or on hand collateral play no role in eligibility. Instead, the main factors are the type of retirement account (like a 401(k) or IRA) and the amount of money you have in it (at least $50,000).
You Can Still Grow Your Nest Egg
ROBS is also a tool for building your retirement assets. While using ROBS does mean you’re taking money out of your retirement accounts, it also means putting cash back in. As you work within your business and pay yourself a salary, you’ll also be contributing a percentage of that salary into a 401(k), just like you do when you’re an employee at any other company. This means your retirement assets will continue to grow as you build your business.
Fully Legal and IRS Compliant
In 1974, Congress enacted the Employee Retirement Income Security Act (ERISA) to shift the burden of building retirement assets from the employer to the employee. ERISA, when paired with specific sections of the Internal Revenue Code, makes it legal to tap into your eligible retirement accounts without an early withdrawal fee (if you’re younger than 59 and a half) or a tax penalty.
Get Money for Your Business in 3 Easy Steps
See your financing options and how much funding you can access with our two-minute pre-qual.
Schedule a Call
Schedule a call online with a financing expert to discuss the right funding options for you.
Get your money to start or buy a business. ROBS funding can be accessed in as little as three weeks.
See How Much Money You Qualify For Today
Receive a list of funding options tailored for you.
The Benefits of 401(k) Business Financing
Why should you use Rollovers for Business Startups to finance your small business or franchise? ROBS offers benefits not found in other forms of financing.
Without loan interest to pay, you can make money faster. While 80% of small businesses fail within four to five years, small businesses started with ROBS are twice as likely to remain in business.
Invest in Yourself
It’s your money — use it. Instead of placing your money in a volatile market, you can make your money work for you. The number one reason people decide to open their own business is to be their own boss — now it’s your turn.
Start your business off strong. ROBS lets your business start out flush with cash, making those startup costs much more manageable.
Down Payment for Other Financing
Your ROBS funding can also help you pursue other forms of financing, like SBA loans.
Many other forms of financing, such as bank loans, require you to provide collateral to qualify for funding. With ROBS, you eliminate the risk of using your home as collateral.
Unlike SBA loans, ROBS financing doesn’t require industry experience. And unlike other forms of financing, your credit score doesn’t play any factor in getting your funding.
Grow With Guidant's Business Services
Guidant Financial is the industry leader in 401(k) business financing. We complete more Rollovers for Business Startups transactions each year than any other company and have the lowest audit rate in the industry.
For $4,995, here’s what you can expect from Guidant:
Our team is here to support you through the ROBS process and beyond. Along with a dedicated Account Manager, you’ll get a thorough compliance review from our in-house attorneys.
We stand behind our clients 100%. In the unlikely event of an IRS audit we’ll cover all legal costs, which saves you money and allows you to get back to what’s important — running your business.
We promise a rapid close with a money-back guarantee; we do what it takes to close deals quickly.
We’re the only firm that offers an outside, independent attorney (at our expense) to review your transaction and ensure you receive unbiased advice that prioritizes your needs.
If you are not completely satisfied with our set up services, just let us know. Our team is dedicated to providing only the best experience for our clients.
In-House Plan Management
Our in-house team of experts will help establish your account. They’ll also help keep your files IRS-compliant and provide you with an annual business valuation.
Most Retirement Plans Qualify
You don’t have to be a financial expert to use 401(k) business financing. All you need is at least $50,000 in a rollable retirement or pension account. Learn more about retirement or pension plans that qualify.
This plan is usually sponsored by an employer. It is the most common plan used with ROBS.
This plan lets you invest pretax income that grows tax-deferred. Roth IRAs, in contrast, are not eligible for ROBS.
This plan is available to individuals like employees of nonprofit organizations, public schools, and some hospitals.
This plan is a tax-deferred pension plan available to self-employed individuals or unincorporated businesses.
A defined contribution plan for U.S. civil service employees, retirees, and some members of the military.
A straightforward retirement plan that any employer or self-employed individual can establish.
Use ROBS as a Down Payment for Your Franchise or Small Business Loan
You don’t need to have enough funds in your retirement plan to completely cover the costs of your business needs. Instead, combine small business financing methods by using your ROBS funding as the down payment on an SBA loan — without triggering any tax penalties or draining your personal savings.
Ready to take the next step?
Get in touch with a Guidant expert to find out which programs, and how much, you qualify for.