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Small Business Success: Portfolio Loans

Video Transcription


David Nilssen:

When most people think about small business financing, the SBA or roll over for business startups might be the first thing that come to mind. But we’re seeing more and more people leverage their non-retirement assets to buy a small business. You’ve got over $85,000 non-retirement based securities account.

You can leverage up to 80% of your stocks, bonds or mutual funds without selling. So there’s three potential advantage to going down this path. The first is what I alluded to another opportunity lost, most people would liquidate their securities in order to buy a business. In this case you don’t have to endorse, as they continue to gain in value, you would still capture that value.

Another would be the low interest rate and now we’ve seen rates granted under 5% for these types of loans. And the final is speed. Most traditional loans take up to two to three months to secure. In this case, they can be secured in about 10 days. And it’s important to note that there’s no payment unless you use the capital. So you’re not penalize for coming in under budget or even overestimate the costs of a project and you can combine these funds with a roll over business, start giving you increased purchasing power and more flexibility for entrepreneur. Guidant Financial work with our clients to help them determine the right economical solution for them to finance their franchise, and you can leverage on their work and find the best, to find a financing solution for you.

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