Here’s A Little Known Way To Finance Your Business Without Debt Or Collateral
This is a sponsored post written by me on behalf of 401(k) Business Financing for IZEA. All opinions are 100% mine. There’s one message that I hope comes through in all my talks and all my books. It’s that anyone can do it. Anyone can kick their J.O.B., start their own business and work for themselves. Anyone who wants to be their own boss can take control of their own life. Anyone who has an idea and a dream and the get-up-and-go to make it happen, can take that first step and look forward to a life of fun doing something that they love. But I know that’s easier to say than to believe. No new business idea is ever financed by desire alone. You’re going to need money. Marketing has budgets, contractors have bills and it takes time before you turn your first profit. Time is money too. The first challenge of any new business owner is finding Small Business Financing to get things rolling. Banks and Use Your Retirement Funds to Start Your Business ForegoTraditionally, entrepreneurs have gone cap (and credit record) in hand to banks, and agreed to pay their giant interest rates at the risk of losing their home. More recently, crowdfunding has allowed thousands of businesses to raise funds for their products and test consumer demand before spending their own cash. But there is another method that’s been around since the seventies, and few people know about it. 401(k) Business Financing lets you use your retirement fund to finance a new business. There are no tax penalties, so you don’t get hit with a bill from Uncle Sam when you pull the money out, and you can just pour it straight into your new venture. Guidant Financial has helped more than 14,000 entrepreneurs to use their 401(k) and other retirement and pension funds to become entrepreneurs (more than any other provider in the industry), and they point out that it’s an opportunity to invest in yourself. Instead of trusting your pension company to put your money in the right stocks so that there’s something there when you hit your sixties, you’ll be able to bet on your own dreams and on your own drive to succeed. There’s no collateral, so you won’t be at risk of losing your home. The beautiful thing about Debt Free Financing is that you won’t have interest payments to make and your new business will be able to grow faster. You’re borrowing from yourself so your credit score doesn’t matter. And Guidant Financial say that they can wrap the whole process up in about three weeks. This time next month you could be your own boss with the money you need to build a successful small business. Requirements of Using 401(k) Business Financing Before you leap in, there are a couple of things to consider. First, you will need to have at least $50,000 in your retirement fund. If you’ve been working and saving for your retirement, you should be in a good position. If not, you’ll need to save a little longer. And secondly, understand you’ll be taking a risk. You might not be betting your home but you will be betting at least some of your pension pot. There’s always a risk in starting a new business. There’s always a price for something valuable, and nothing is more valuable than a life spent doing something you love. Don’t take that risk as an excuse to do nothing. Take it as an opportunity to build a business plan that looks reliable and realistic. Then take a look at 401(k) Business Financing as a way to make it happen.
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