Jenny Lawson 5 months ago
Since you have so much information on this topic, could you tell me where I could obtain information on funding for the start up of a business?1 Reply
Dock David TreeceModerator5 months ago
There are many ways to get funding to start a new business but, lucky for you, we’ve written articles on a lot of them!
One of the most popular ways of financing a new business is with an SBA loan. These loans can be difficult to get and underwriting can take a while, but the interest rates are extremely competitive and have lower equity requirements than many alternatives. You can learn more about SBA loans by checking out our article on SBA loan rates here: https://fitsmallbusiness.com/sba-loan-rates/
If an SBA loan may not work for you, we’ve also written extensively on a number of ways that you can finance your business through current retirement assets. Cashing out retirement assets can create tax liability or cause you to incur penalties, but it’s also possible to borrow against some retirement accounts. You can read more about how to use retirement assets to fund your business by checking out our article on 401(k) business funding here: https://fitsmallbusiness.com/401k-business-funding/
There’s one type of 401(k) business funding that we’ve found particularly successful for funding new startups and that is the Rollover for Business Startups. These accounts have special rules but allow you to fund your business using existing retirement assets without paying any interest to a bank or loan underwriter. There are also a number of great providers including Guidant who can help you through the process of setting up and using a ROBS for your new business.
For more information on ROBS, be sure to check out our ultimate guide here: https://fitsmallbusiness.com/rollover-business-startups-robs/
Hope this helps. Best of luck.
- This reply was modified 5 months ago by Dock David Treece.
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