Taking out a home equity loan (HEL) to finance your business is easier than getting traditional startup business loans. Individuals with equity in their home and strong personal credit can use a home equity loan for large one-time expenditures or other capital influx needs in the business. If you are considering using a home equity…
Rollover for Business Startups (ROBS): The Ultimate Guide
A rollover for business startups (ROBS) allows you to invest retirement funds from a 401(k) or individual retirement account (IRA) into your business without paying early withdrawal penalties or taxes. A ROBS isn’t a business loan or a 401(k) loan, so there’s no debt to repay or interest payments to make. Most small business owners…
How to Use a 401(k) to Start or Buy a Business
There are three ways you can use 401(k) business financing to start or buy a business. You can cash out funds, borrow against them, or use a rollover for business startups (ROBS). The only option that does not result in penalties, taxes, or interest charges is a ROBS, making it ideal for most situations. If…
5 Best Rollover for Business Startups (ROBS) Providers 2020
A rollover for business startups (ROBS) is a financing solution that lets you start or purchase a business with your retirement savings without paying early withdrawal fees or tax penalties. These transactions are difficult and confusing, which is why we recommend using an experienced ROBS provider. We’ve compared the best ROBS providers for startup businesses….
Top 6 Venture Capital Firms 2020
Venture capital is the investment in startups and early-stage businesses by private investors or firms, and is a form of private equity investing. In exchange for funding, venture capitalists receive equity in the startup. It is most common in high-tech, high-growth industries, including internet and software services, biotechnology, and industrial manufacturing. 6 Best Venture Capital…
Credit Card Stacking & Using It to Fund Your Startup
Credit card stacking is the practice of applying for multiple credit cards at the same time to access a larger unsecured line of credit. Once approved, you can use your stack of credit cards to finance a startup, small business, or real estate deals. This works as an alternative working capital funding source for businesses….
10 Eye-opening Crowdfunding Statistics 2020
Crowdfunding is a popular method of raising funds for startup business expenses, charities, and personal causes. While funding isn’t guaranteed, crowdfunding statistics show us that a strong pitch and continued communications throughout your campaign can increase your chances of success. The ten most eye-opening crowdfunding statistics are:
How to Set Up a Rollover for Business Startups (ROBS)
A rollover for business startups (ROBS) enables entrepreneurs to access retirement funds to start or buy a business. Setting up a ROBS involves rolling an existing 401(k) into a new C corporation’s (C-corp’s) retirement plan. The new business purchases shares in the company with the ROBS 401(k), allowing the business use of the funds. To…
Debt Financing: The Ultimate Guide
Debt financing is the most common form of small business financing. It involves borrowing funds from a lender and repaying the borrowed amount—plus interest—over a set period of time by means of regularly recurring payments. Common forms of debt financing include loans, lines of credit, and credit cards. What Is Debt Financing? Debt financing provides…
What Is a Convertible Note? Examples & How It Works
A convertible note is a short-term debt that has an interest or discount rate, a valuation cap, and a maturity date. Investors use convertible notes to invest in startups in the early stages of development. Investors can choose to convert convertible notes into preferred shares on a specific date or event. What Is a Convertible…
Raising Money From Friends and Family: Loans Or Equity?
Turning to friends and family to fund a business venture is one of the most common forms of small business funding. Raising money from friends and family is less formal than other financing alternatives. Business owners can give away equity to fund their business or take on debt with a friends-and-family loan. What a Friends-and-Family…
10 Surprising Startup Statistics
Starting a business can be a dream come true. As it turns out, you don’t need a degree from Harvard University to do it. If you’re curious about what it takes to have a successful startup, look no further, dear entrepreneur; we’ve compiled some startup statistics that may surprise you.