Small Business Financing and Franchise Financing Blog

Alternative Small Business Financing Options

Tuesday, February 16

If you’re looking to start your own business then you are likely aware that traditional sources of financing are difficult to obtain. Even if you’re like many of Guidant’s clients and have a stellar credit rating, you may not qualify under the tight credit policies of today’s lending institutions. At Guidant, we understand that small and medium-sized businesses are the cornerstone to a healthy economy. That’s why we strive to provide alternative small business investing solutions that assist our clients in achieving their dreams.

Finance Your Business with the Guidant 401(k) Plan

With the Guidant 401(k) Plan, you become your own financier by investing your retirement accounts into a business or franchise. As this is a self-directed investment and not an early withdrawal, there are no taxes or penalties applicable. And best of all, your new business will not have to pay the funds back as there is no debt. This opportunity can position your company for rapid growth in the early stages without using your earnings to make loan and interest payments.

At the same time, as your business flourishes and the value of the company rises so to does your retirement fund. That’s the beauty of the Guidant 401(k) Plan. If you have confidence in your abilities, unlike the loan officer at the bank, then this may be the solution to your entrepreneurial ambitions.


How the Guidant 401(k) Plan Works
• Guidant will assist you in setting up a C-Corp business organization for your new company or franchise.
• We will guide you through the process of setting up a 401(k) for your new business.
• Your retirement funds will be rolled over into the new Guidant 401(k) plan.
• The new 401(k) plan then purchases shares of the new corporation providing cash-flow to the business
• This small business financing option provides working capital for your new company without taxes, penalties, or debt.


Benefits of the 401(k) Alternative Small Business Financing Option
• Provides small business financing to start or purchase an existing business with the retirement savings you’ve already accrued.
• No bank managers or loan officers scrutinizing your every move.
• Puts your financial future entirely into your own hands. It’s not like the investment advisors have done a “bang up” job with handling your future.
• With no loan payments or interest expense, you’ll have lower overhead costs and increased cash flow. You’ll be able to invest those earnings into your business where you’ll get the most return on investment.
• Works in conjunction with SBA small business financing.
• Offers tax-deferred earnings within the plan
• You can continue to contribute your personal income into the 401(k) plan for additional retirement fund growth.

With the Guidant 401(k) Plan you get the better of two worlds. You invest your own hard-earned money into your new company and build the business and retirement fund at the same time. Guidant also offers alternative small business financing in the form of unsecured loans and equipment leasing as well. Your future is in your hands as it should be. Contact Guidant today to discuss alternative financing options for your business.