Overview of Rollovers For Business Startups
401k business financing is the fastest growing vehicle in small business and franchise financing today. It’s officially known as Rollovers for Business Start-ups, or ROBS.
Simply put, ROBS allows you to create the life you want by investing your retirement funds into a business or franchise without taking a taxable distribution, incurring penalties or even getting a loan. And, ROBS can be an extremely powerful wealth building tool for your retirement.
Your retirement plan, in effect, acts as your angel investor, receiving stock in the business. This stock that can generate a return for your retirement account as the business grows.
Perhaps because our clients are investing in themselves and starting a business debt-free and cash rich, they’re twice as likely to still be operating in 4 years than other business owners.
Take a look at how much overhead you’re really taking on in these traditional financing methods compared to ROBS: this graph represents the costs of borrowing through traditional financing vehicles versus those in your retirement plan.
We know it’s hard to find the money to start or buy your business. Unlike banks, 401k business financing does not require underwriters, pre-approvals or credit to buy a business – a major advantage. If you understand your obligations and you want to utilize ROBS to fund your business, you can.
It’s also not uncommon to see ROBS used in combination with other financing methods. You can even use the funds as a down payment to help with an SBA loan or other traditional options.
Most entrepreneurs choose ROBS because they want to reduce or eliminate how much debt they take on for their business; they like that they will have a retirement plan for themselves and their employees so they can continue to build wealth; and they like investing in a business that they have control over and can directly impact.
We know it can be hard to get business funding – but it doesn’t have to be. We make it easy for you to get the money you need to be a successful small business owner. Our expert team will help you secure fast, affordable financing solutions so you can focus on the business of your dreams.
Pre-qualify in two minutes on our website, or give us a call today for a free, no-pressure consultation with one of our financing experts. Let us help you create the life you want.