How to start your own business debt-free

This is a sponsored post written by me on behalf of Guidant Financial for IZEA. All opinions are 100% mine.

The dream of owning their own business is at the forefront of many American’s goals, but one major roadblock is holding them back — how to finance that dream. If you have been working the same job for years, and diligently putting part of your paycheck into a retirement savings account, you may already have the means to fund your business. The funds you thought could only be invested in Wall Street stocks, bonds and mutual funds can actually be used to finance your own business, allowing you to serve as CEO of the company you are buying. Guidant Financial helps business owners roll over their retirement funds tax penalty-free with 401(k) Business Financing.

How do I know if I am eligible for to start my business with 401(k) Business Financing?

To be eligible, all you need is $50,000 in a retirement or pension account that is rollable. These can be funds from a past employer or a current job that you are planning to leave once you start your business venture. The types of retirement accounts can include a 401(k), 403(b), Traditional IRA, Keogh, TSP, SEP account or pension. Your credit score, or other financial risk factors, are not even considered since this isn’t a loan. This can be a lifesaver for those who may have experienced life circumstances that have negatively affected their credit.

Structuring your business for 401(k) Business Financing

While there are minimum requirements for your retirement funds to be eligible, there are also a few structural requirements to take advantage of this funding solution. One of these structural requirements is you must operate as a C-Corporation to meet IRS business transaction requirements. This is because your entity must allow for the private sale of stock and needs to be able to support a 401(k), which is what allows you to roll your funds over into your new business. The other key requirement is you must plan on working for the business. This requires you to be a salaried employee of the corporation you will be establishing; passive investments don’t qualify.

The Benefits of Using 401(k) Business Financing

This type of Small Business Financing, formally called Rollovers for Business Start-ups, is unique for entrepreneurs because it provides benefits that no other funding source offers. It is a fast, legal funding option that business owners have been using since the Employee Retirement Income Security Act became a law in 1974. It offers the business owner a way to become profitable quicker by starting off debt-free. No loan payment lurking over your head, and it eliminates financial stress so you can concentrate on what you do best — running your business and satisfying your customers. You also aren’t putting up your home as collateral as would be required with debt-financing options like SBA loans. Rather than gambling all of those hard-earned dollars that you have been saving in your retirement account in the ups and downs of the stock market, this gives you the opportunity to really invest in yourself and have more control of that investment. By betting on yourself, rather than in the stock market, you will now control your own destiny. I mean, who will harder for you than yourself?!

Looking for a 401(k) Business Financing Expert? Talk to Guidant Financial.
Why not join the 14,000 other entrepreneurs who have worked with Guidant Financial to finance their business with 401(k) Business Financing? Guidant has helped more entrepreneurs use 401(k) Business Financing than any other provider. If you have been just thinking about starting your own business, are already in the planning stages, or are facing a potential job loss and think that it’s time you set out on your own, Guidant Financial will be there to guide you through the entire business funding process. A new business venture can be a scary undertaking, but Guidant is there to help you make sure you chose a funding solution that is right for you. Those who have funded their dream through Guidant Financial are grateful they had a partner to help them make their dream a reality. Learn more about Debt Free Financing.

This is a great example of one of their very satisfied customers: