BENEFITS OF USING YOUR RETIREMENT FUNDS TO BUY A FRANCHISE OR BUSINESS

There's no doubt about it—securing funding to start a new business or franchise can be challenging. However, one funding option that many franchise owners have found success with is utilizing retirement funds to start a business (sometimes called 401(k)/IRA Rollover Funding or ROBS: Rollover as Business Startups). Many popular plans that qualify for this type of funding include: 401(k), IRA, 457(b), 403(b), PSP, SEP IRA, and more. (Roth IRAs are ineligible.)

To help you better understand why this is so popular with franchise owners, here are a few of the benefits of using this method to fund a franchise or small business:

FINANCIAL BENEFITS: There are no taxes or penalties since the funds are being rolled over from one retirement plan to another. It's also a debt-free and interest-free funding option so you can start your franchise cash-rich, plus pay yourself a salary during startup.
FAST AND FLEXIBLE: When you use your retirement funds to purchase a business, you can secure funding fast (typically 18 business days or less). It’s also flexible – you can use it as the sole method of funding, or if you prefer, you can use it to meet the equity injection requirement for an SBA loan.
EXIT STRATEGIES: Personal business asset appreciation upon sale can be subject to significant consequences. But when you use your retirement funds to start a franchise, you can save hundreds of thousands of dollars in taxes since any appreciation can be moved directly into your retirement plan and protected - often for the rest of your life (and your spouse's life, or be used PRETAX to buy a bigger/better business).

As you can see, there are several advantages to this type of funding. To learn more about this and other funding options available to start a franchise, visit http://franchise.org/benetrends-financial-supplier.

Benetrends is the authority in franchise funding, acclaimed for its Rainmaker Plan which enables entrepreneurs to use their retirement plan to purchase a business, tax deferred and penalty free. Benetrends has an industry high approval rating in SBA Loans and offers a full suite of business solutions including funding, commercial insurance, health insurance, payroll and more.