Tweet

Financing Your Business Without A Business Loan

Guest post by: Joseph Lizio

Article Overview: No interest payments, no credit checks, no collateral and no income verification business loans. Financing your business might not be as hard as you think. Invest in yourself.

Financing Your Business Without A Business Loan

Imagine financing your business (be it a startup or existing business) all without taking on outside debt or giving up equity (ownership) in your company. That would be novel. Sounds too good to be true!

Well, it can be done - you simply use the money you already have accumulated in your retirement accounts - i.e. your IRA or 401(k) or any rollover-able account. You essentially direct these funds to be invested in you or your business.

By law, you can use your retirement funds (your IRAs, 401(k)s, 403(b)s, Keoghs, SEPs, etc) and invest that money (or any part of it) in a business (any business) - including your own.

All without tax or distribution penalties! All without credit checks, income verifications, collateral, or personal guarantees.

You can even use those funds as the equity down payment on a bigger business loan like a bank loan or SBA loan or, better yet, use YOUR funds to buy a business or that franchise you have had your eye on.

So, why would you risk your retirement savings? Think about it this way. Your IRA or 401(k) will only grow when the markets grow. If (that is a big if) - if the markets are growing, your portfolio may grow anywhere from 5% to 15% per year on average. OK - not too bad if you do not have any other options for your money.

But, what if you could double your money in the first year? Would that not be better - a better return on your investment or in your retirement account?

What about tripling your money in three to five years - that would be far better than growing your money at say 5% or even 15% - if the market is in an up swing. In fact, to triple your money at, let's take the higher number and say 15% per year, it would take you nearly 8 years to do so - 23 years at 5%. That is a long time when you could be investing in you - growing those funds at a much faster rate.

There are many rules in finance - some vague and some unrelated but, the number one rule in all of finance (regardless if it is for your person or your business) is to put your money where it will earn the biggest return (the biggest bang for your buck - so to say).

Anything else is a waste. Thus, if you can only earn 5% on your money leaving your funds in your current retirement account or 100% return using those funds to start or grow your business or purchase a franchise - then the 100% options is always better.

To earn that return, all you have to do is believe in yourself.

Further, most of these retirement plans - IRAs, 401(k)s, 403(b)s, Keoghs, SEPs, etc. - are managed by people or groups you have never met. And, if the latest corruption and greed on Wall Street is any measure of what those people are currently doing with your retirement money, then these so-called managers are more interested in investing YOUR MONEY in ways that help them (like their fees and commissions) then in ensuring your accounts receive the greatest benefit.

You can solve this issue by taking charge of your investments and your own accounts - ensuring that every single dime is working for your greater good.

Moreover, in conjunction to increasing your retirement assets, you also get to run your own business. Earning a larger salary and building your own wealth. Working for yourself and becoming financially independent - your way.

One last thought here: Other entrepreneurs who tapped their retirement accounts and invested in both themselves and their businesses have much less failure rates than other entrepreneurs starting businesses today. Why? 1) they believe in their selves and their ability to make their businesses work and 2) they are less likely to just walk away - they tend to work harder to ensure that their dreams do actually come true.

Are you one of those entrepreneurs or one of the failures?

So, what do you really have to lose? You can either realize your dreams by financing your business without debt, without interest and without the hassles that banks impose - like credit checks, income verification and collateral with personal guarantees - or you can step outside that box and become the success you know you can be - if only given the chance. Well, here is your chance!

Related Articles
  Bad Credit Auto Loans - Proper Solution for Your Online Car Financing
  How to Get a Car Loan Financing With Bad Credit
  Finding Information on Small Business Loans
  Get a Guaranteed Approved Auto Loan for No Credit History
  How Merchant Advance Capital Works in Canada And Why Retail Merchant Financing Produces Cash Flow Today
  How Much Will A Business Franchise Loan Cost When Financing A Franchise In Canada ?
  A Credit Catch-22: When lenders and lawmakers disconnect
  Avail Affordable Car Loan Financing Rates
  Consider offering a \"bridge loan\" when selling a business
  What’s So Little About the Small Business Government Loan In Canada ! SBL Guaranteed Financing
  Why Is The Canada Government SBL Loan For Small Business A Canadian Success Story
  Seller Financing - A Benefit to Buyers and Sellers
  How to Get Online Car Loan Financing Easily
  Car Loan for People with Bad Credit – Get a Easy Auto Loan for Bad Credit
  Simple Question – Is the Canadian SBL Government Small Business Loan Financing Right For You?
  Finding a Good Lender for Car Loan Financing Online
  Can You Afford A New Boat Loan
  How to Get Online Used Car Loan Finance & Auto Financing
  Quick Guide On Financing Your Business
  Bad Credit Car Loans - Getting a Auto Loan Financing With Bad Credit

Article Tags: business loan, franchise loan, investment, retirement account, small business financing



Related Forum Posts
My entry - 1. The Best Business Books Ever: The 100 Most Influential Business Books You'll Never Have Time to Read - this is a fascinating book about the history of Business theory, and I'd recommend it to anybody. 2. The Big Book of Small Business: You Don't Have to Run Your Business by the Seat of Your Pants, by Tom Gegax. Ditto. 3. PADI: The Business of Diving Book Okay, so this book won't be of use to anyone who doesn't want to start a scuba store, but I did, and this book was of course invaluable to me in reaching that goal.
re: restaurant start-up - I'm not sure about government grants for restaurants, but my recommendation would be to approach a lender that offers loans under the Canadian Small Business Financing Loan program where the government will guarantee 85% of the loan. You can borrow up to $250,000 to finance equipment and renovations under this program. Restaurants are very risky business, however some of the Chartered Banks will look at restaurants if there is enough of an initial equity investment and you have a solid business plan (experienced management team, good concept and strategic location).
Exclusive: Interview with Results - Hi Forum Members, I'm helping start up a Business Coaching and Consulting company here in Toronto, Ontario, Canada (a Subsidiary of RSC Business in Los Angeles). As a Research and Development Intern I am required to practice my listening and interview skills by surveying Small and Medium Businesses on thier Business. This Survey is designed by RSC Business to also assist the Business being interviewed more insight into their own business. I am looking to interview about 30 businesses across North America over the span of 3 months. At the end of these interviews I will be publishing a report of the results and they will be made available for free to the Interviewees. The Report data will include responses from a minimum of 100 interviews. I would like to extend this opportunity to members of the Forum. If you would like to have this short 20-30 minute interview conducted on your Business and you reside in North America please send me an email or PM. Please contact me at andy[at]jvprosperity[dot]com to arrange our interview and to get free access to the results when they are published.
Re: HOw to market a B2B consulting company - [quote="zohahunt77":428owzbi]Hi, I was wondering if anyone can tell me the difference between B2B and B2C. I don’t know about b2b marketing but I have done marketing so know things about it. I will suggest you to take online services which will spread your business all over web network. Online marketing is the best way to market any business.[/quote:428owzbi] B2B = Business to Business - You are marketing to other businesses. B2C = Business to Consumer - You are marketing to consumers.
These maybe the coldest franchises out there: - Here are the worst 15 performing franchises in regards to having the highest Small Business Administration (SBA) loan failure rates. The list is dotted with sub sandwich shops, fitness centers and car shops. WORST FRANCHISE LOAN FAILURES Failure % 1 OBEE'S SOUP SALAD SUBS 55.56% 2 LADY OF AMERICA 41.94% 3 COUNTRY CLUTTER (BED & BREAKFAST) 41.18% 4 COPY CLUB 36.36% 5 ALL TUNE AND LUBE 35.71% 6 PICKERMAN'S 35.71% 7 PHILLY CONNECTION 35.59% 8 ROLY POLY ROLLED SANDWICHES 34.78% 9 COTTMAN TRANSMISSION 34.48% 10 HAIR COLOR EXPRESS 33.33% 11 LEE MYLES AUTOMOTIVE TRANSMISSIONS 33.33% 12 GODFATHER'S PIZZA 33.33% 13 SMOOTHIE FACTORY 33.33% 14 BLIMPIE 31.39% 15 GOLF U.S.A. (RETAIL GOLF EQUIP.) 30.77% Source: Small Business Administration, SBA Loan Performance Within Franchise Code for the Period of FY 2001 - 2005


Share this article with your friends. Fund someone's dream.

Leave a comment below or share on the left and you'll help support entrepreneurs in Africa through our partnership with Kiva. Over $50,000 raised and counting - Please keep sharing! Learn more.

Newsletter

Get advice & tips from famous business
owners, new articles by entrepreneur
experts, my latest website updates, &
special sneak peaks at what's to come!

Name:
Email:

Popular Articles

How to Improve Your Time Management

12 Principles to Spark Innovation

Suggestions

Email us your ideas on how to make our
website more valuable! Thank you Sharon
from Toronto Salsa Lessons / Classes for
your suggestions to make the newsletter
look like the website and profile younger
entrepreneurs like Jennifer Lopez.