Franchise Loans – 401K Business Financing – IRA Franchise Funding
Many of clients are disappointed with the performance of their retirement investment account used 401K / IRA business financing to buy a franchise where they can put the money to work and have more control over their financial future while still saving for retirement.
401K / IRA Franchise Funding Fast Facts
- Loan type: Rollover
- Loan Cost: Third Party Fees Approx. $5,000
- Time to Fund: 4 weeks or less
- Requirements: C-corporation
- Maximum Funding Amount: $50,000
With 401K business financing prospective franchisees can start a business and minimize the need for additional loans. This can help to generate a positive return on investment that can help get wealthy more quickly.
How 401K Business Financing Works
A professional in these types of loan programs will facilitate the formation of a C-corporation for your new business entity, on your behalf. After the incorporation has been approved, the company will then file for a corporate Retirement Plan ID and Employer Tax ID with the IRS. Next a 401K retirement plan is created that corresponds to the individual needs of your corporation. Your new corporate retirement plan documents would then be drafted indicating that your corporation has sponsored the new plan. The next step is to rollover funds from your current retirement plan to your new corporate-sponsored retirement plan which can then be used to invest in the new C-corporation. Now that your corporation is officially funded you are able to buy a franchise. The whole process of franchise financing usually takes about 3-4 weeks to complete. Plus, you may be able to set aside up to $200,000 tax-deductible retirement savings per year. (note: always consult with your tax and legal professional advisors) The best part about 401K business financing compared to other franchise
financing options is that it helps to minimize debt, stimulate business growth, enhance cash flow, build equity and make the most out of tax benefits. In addition, you can invest retirement funds into the business without paying taxes or penalties, pay yourself wages from the word go, secure funding in time, gain immediate cash flow and build equity immediately to enhance profitability. Contact us today to learn more about 401K business financing to buy a franchise.
