Guidant Financial provides funding solutions for small businesses and franchises. It’s perhaps most well known for its Rollover for Business Startups (ROBS) product, which allows retirement funds to be accessed tax- and penalty-free. However, Guidant Financial also offers other products and services, such as Small Business Administration (SBA) loans, unsecured loans, portfolio loans, and equipment leasing.
In completing this Guidant Financial review, I found that the company stood apart from competitors due to the depth of its services, resources, satisfaction guarantees, and customer protections. While it may not have the lowest pricing, you do get a premium-level product, which can be a great fit for many business owners.
Guidant Financial: Pros, Cons & Summary of Product Offerings
| PROS | CONS |
|---|---|
| Multiple funding products, including loans and 401k/ROBS financing | Lower pricing available from competitors |
| Wide range of resources and strong customer protections & guarantees | Funding speeds can be slower than many other lenders |
| Free consultations to help you determine the product best suited for you | Lending products typically require good credit and finances to qualify |
Loan Programs & Services Offered
- 401k business financing (ROBS)
- SBA loans
- Unsecured loans
- Portfolio loans
- Equipment leasing
- Business appraisal & valuation services
How Guidant Financial Differs From the Competition
Compared with most other companies, Guidant Financial excels in several areas. Namely, you’ll have peace of mind knowing that you’ll be protected as a client against any potential errors that might draw the attention of regulatory agencies like the Department of Labor or the Internal Revenue Service.
Guidant Satisfaction & Money-back Guarantees
Depending on the product you apply for, you could qualify for a money-back guarantee if you don’t get your deal funded in a timely manner. Additionally, the Guidant Financial team places a large emphasis on delivering a high level of service to ensure your satisfaction with its account setup services.
Audit Protection
Although rare, audits can still occur. While many other companies provide audit services, Guidant Financial goes above and beyond by agreeing to pay for all legal costs involved with an IRS audit. The company also has a spotless record for its ROBS plans, as it states that no taxable distribution has ever occurred as a result of its ROBS structure.
Outside Legal Counsel
Included within the cost of a ROBS plan is the ability to hire an outside independent attorney to review the transaction for even more assurance that it complies with all regulatory requirements. An added benefit is that the outside counsel selected can provide unbiased feedback on not only whether the transaction is being completed correctly but also whether it is the right fit for your needs and circumstances. This outside legal counsel is provided in addition to the company’s own internal team of experts.
Who Should Consider Guidant Financial
With so many options when it comes to small business funding, it can be difficult to know where to start, let alone whether the company you’ve chosen is the best fit for you. To simplify the decision-making process, I recommend strongly considering Guidant Financial if the following scenarios apply to you.
You Want to Get Business Funding Without Taking Out a Loan
Guidant Financial is one of our best ROBS providers. Although getting a ROBS is a complex process that requires you to navigate multiple areas of tax rules and regulations, you’ll be able to get tax- and penalty-free access to the funds in your retirement accounts.
Guidant Financial, like other ROBS providers, does charge a fee for its services. However, because you’re accessing your own funds, there are no interest charges, monthly payments, or funds that need to be repaid.
You are Seeking a Company With Strong Customer Protections
If you’re looking for a company that has your back, Guidant Financial is an excellent option. Not only does it offer a money-back guarantee for some of its products and services, but its most popular ROBS product also comes with audit protection that covers all of the associated legal costs. As a business owner, this allows you to focus on your company’s day-to-day rather than worrying about unnecessary paperwork and other administrative tasks.
You Need Access to a Premium Level of Resources
Guidant Financial may not be the lowest-priced product on the market, but you’ll get what you pay for.
When you begin the process, you’ll work with a dedicated account manager who will guide you and provide assistance with paperwork and program requirements. You can also consult with outside counsel at no additional cost and work with the team’s own internal attorneys and program specialists. Finally, you can take advantage of the company’s plan management to get an annual business valuation and ensure ongoing compliance for your ROBS.
You Want to Have Multiple Funding Options
Working with companies that provide a small handful of products or services can be challenging—if you’re not the right fit, then you could find yourself being bounced around from one lender to another. Guidant Financial, however, offers multiple funding solutions. If you’re not the right fit, you can be seamlessly switched to another product internally.
Guidant Financial: Products & Services Offered
In the following section, I’ll detail each of the programs that Guidant Financial provides. Where applicable, I’ll also cover Guidant Financial fees, terms, qualification requirements, and who would be a good fit.
Rates, Terms & Qualifications | |
Initial Setup Fee | $4,995 (10% discount for veterans) |
Monthly Maintenance Fee | $149+ |
Funding Speed | As fast as 3 weeks |
Minimum Required Balance | $50,000 |
Who Should Consider a ROBS
If you’re unable or don’t want to borrow money or get a loan, a ROBS is a good alternative. Loans carry interest charges along with the requirement to make periodic payments, generally on a weekly or monthly basis. They can also be difficult to get due to various credit and financial performance requirements.
A ROBS, on the other hand, has no interest charges and no repayments because you’re accessing your own money. There are also no credit, time in business, or revenue requirements. Although funds can be used for nearly any business-related purpose, you’ll need to be structured as a C Corporation to be eligible. You’ll need to stay on top of ongoing annual filing requirements to avoid penalties or fines.
Rates, Terms & Qualifications | |
Starting Interest Rate | Not stated |
Repayment Term | Varies |
Loan Amount | $25,000 to $5 million |
Funding Speed | 30 to 90 days |
Credit Score | 680+ |
Down Payment | 10% to 30% |
Time in Business | Varies |
Annual Business Revenue Required | Varies |
Who Should Consider an SBA Loan
SBA loans are backed by the government, and because of this, they can offer some of the best interest rates. However, due to the amount of paperwork typically required to get approved and funded, SBA loans are more suitable for businesses that aren’t in a hurry to get funds.
Guidant Financial offers the following three main types of SBA loans, each with varying rates, terms, and qualification requirements:
- SBA 7(a) loan: Flexible loan program where loan proceeds can be used for nearly any business purpose. You can get up to $5 million in funding with at least 20% as a down payment and adequate personal collateral pledged for the loan.
- SBA Express loan: Faster funding speeds are available here, although funding is limited to $350,000.
- SBA Working Capital loan: This is another program that offers faster funding speeds compared with the SBA 7(a) program. Funding maxes out at $150,000, and funds can be used for operating-related expenses.
Rates, Terms & Qualifications | |
Starting Interest Rate | Not stated |
Loan Amount | $10,000 to $150,000 |
Repayment Term | Varies |
Funding Speed | Several Weeks |
Credit Score | 690+ |
Time in Business | Varies |
Annual Business Revenue Required | Varies |
Who Should Consider an Unsecured Loan
I recommend only considering an unsecured loan with Guidant Financial if you’re in no rush to get funds and do not need a large sum of money. While the company excels in many areas, it states that it can take a few weeks to close on an unsecured loan.
Guidant Financial is also a good option if your business finances are not that great and you don’t have collateral to pledge for a loan. This is because its unsecured loans exclusively consider your creditworthiness. If approved, funds can be used for any business-related expenses.
Rates, Terms & Qualifications | |
Starting Interest Rate | 3% to 4% |
Loan Amount | Up to 80% of your portfolio balance ($85,000 minimum funding amount) |
Funding Speed | 10 days (on average) |
Minimum Brokerage Account Balance | $85,000 |
Minimum Share Price of Stocks & Securities | $5/share |
Who Should Consider a Portfolio Loan
If you want to borrow against stocks or other assets in your portfolio of investments, a portfolio loan can be ideal. This can be especially true for business owners who have a substantial amount of investments but do not want to liquidate or sell them.
Also known as a stock loan or securities-based loan, a portfolio loan from Guidant Financial can be obtained with no upfront or out-of-pocket cost in just a matter of weeks.
Rates, Terms & Qualifications | |
Starting Interest Rate | 8.5% to 20% |
Lease Amount | $10,000 to $2 million |
Repayment Term | Varies |
Funding Speed | Not Stated |
Credit Score | 650+ |
Annual Business Revenue Required | Varies |
Time in Business | Varies |
Down Payment | Varies |
Who Should Consider an Equipment Lease
An equipment lease is typically a good option if you only have a temporary need for certain equipment or you foresee needing to regularly replace or upgrade the equipment. Leases allow you to have possession of equipment for a specified period. After the lease expires, you’ll generally be required to return the equipment to the vendor.
If you believe you’ll be retaining the equipment for the long term, then you may want to consider purchasing it instead with an equipment loan vs equipment lease. Loans, however, can carry higher down payment requirements and larger repayment amounts.
Estimated Business Valuation | Certified Business Appraisal | |
Cost | $495 | $1,795+ |
Common Use Cases |
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Key Features Included With Service |
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Who Should Consider Business Valuation Services
Business owners looking to buy or sell a company can benefit from Guidant Financial’s business valuation services, which can also be handy for taxable events or satisfying legal requirements.
The firm offers two main services:
- Estimated business valuations are targeted for those who are primarily looking for a rough ballpark figure for the purposes of purchasing or selling a company. The service is less expensive and can be completed much more quickly.
- Certified business appraisals, on the other hand, can be much more costly depending on the complexity of the business. However, they can be deemed acceptable for legal purposes such as taxable events or stock buy-backs.
How to Apply With Guidant Financial
Visit the Guidant Financial website to submit an online application. There, you can get pre-qualified for the type of funding product you’re looking to get in as little as two minutes. If you’re unsure which product is best suited for you, Guidant Financial offers an online chat assistant and the ability to speak with one of its specialists by phone via a free initial consultation session.
When to Consider Alternatives
Guidant Financial won’t always be the best option. If you fall into any of the following scenarios, you may want to consider alternative lenders:
- You need funding quickly: Business owners needing funding in less than seven days should consider a different lender. This is because the majority of Guidant Financial’s products have funding speeds between 10 and 30 days. Lenders that offer the best fast business loans can get you funding within 24 hours.
- You have a low credit score: Except for the company’s ROBS product, which has no credit score requirement, you’ll typically need at least fair credit to qualify for financing. Equipment leasing has the lowest credit score requirement at 650, while its unsecured loans have a minimum of 690. If you cannot get approved for traditional lending products, consider applying with lenders providing the leading bad credit business loans.
- You are seeking the least expensive funding option: Guidant Financial offers premium products and services, especially in the case of its ROBS program. However, this doesn’t come cheap, so if your main goal is to save money on funding costs, you may want to consider alternative lenders or loan programs.
Frequently Asked Questions (FAQs)
Yes. Guidant Financial offers multiple funding options, including a ROBS product if you want to access your retirement funds tax- and penalty-free. It also has excellent customer protections and resources, including a money-back guarantee, audit protection, and access to outside legal counsel.
Compared with some lenders, funding speeds tend to be longer, and fees charged can also be higher. Many of its programs require two to three weeks for funding to occur. Additionally, qualification requirements for its lending programs have higher credit score requirements than many other providers.
It depends on the program you’re applying for. Its ROBS program, which allows tax- and penalty-free access to your retirement funds, is easy to get approved for as it has no requirements for credit score, time in business, or business revenue. Its lending products, however, require at least fair credit to get approved.
Bottom Line
Guidant Financial is a good option if your small business needs funding, as it has a wide range of products and services. In addition to offering traditional loans, it is perhaps most well-known for its ROBS product, which allows tax- and penalty-free access to your retirement accounts.
It also provides a premium level of services and resources, although it does come with a price. If you’re not in a rush to get funding and can afford the price tag, Guidant Financial is a company I highly recommend considering.
