Finding New Ways To Finance Your Dream
Statistics show that more than one million people in the United States start a new business each year.
That number would be much higher if all the would-be entrepreneurs had the financing required to get a business up and running. In order to accomplish their dream of business ownership, entrepreneurs are finding new and innovative ways to finance their new ventures.
One of these new financing options is the use of a person’s existing retirement funds-a pension, profit sharing, 401(k), IRA-which allows that person to start the business he or she has always dreamed of without tax penalties, consequences or mountains of debt.
Funds can be turned into useable capital for business investments or operations. If a person has more than $20,000 in a retirement account and is not currently employed by the company that holds those funds, he or she qualifies for this Small Business Administration (SBA)-recognized approach to finance and start a business.
Retirement funds can be used for any business purpose. Could you use money for any of the following reasons:
- Purchasing a franchise or existing business
- Start-up expenses, such as purchasing property, and equipment.
- Working capital, including paying salaries, and franchise fees.
- Business expansion, such as funding additional franchises, and locations.
- Equity toward SBA or other loans.
Funding your business is as simple as these four steps:
Step 1: Establish a C-corporation.
Step 2: The new corporation creates a retirement plan.
Step 3: Funds are rolled over into the corporation’s new retirement plan.
Step 4: The new retirement plan purchases the stock of the corporation.
So many people have watched their dream of owning their own business go out the window due to lack of funding options. We help entrepreneurs, coaches, consultants, and services based businesses achieve that dream every day.
Posted on July 3, 2011, in Business Credit and tagged business financing, business line of credit, credit savvy CEO, Entrepreneurs Find New Way To Finance Dream, iewbc, loans, SBA loans, SCORE, shameca tankerson, small business loans, start up capital, success, women owned loans. Bookmark the permalink. 2 Comments.