Financing Your Small Business
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Home Equity Loans
Home Equity Loan.
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Home Equity Line of Credit.
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Small Business Administration (SBA) Loans
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Sound business model.
Keep in mind: If you need capital quickly, SBA-guaranteed
loans can take up to 90 days to process.
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Retirement Plans: A Nontraditional Source
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The Basic Steps
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invests in the
In return, your company is
able to use those funds to purchase a business or franchise,
cover its day-to-day operations, and so on.
The Pros and Cons
Your retirement funds can grow in a variety of
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You can make future contributions.
You can receive profit sharing and contribution
But on the other hand
You must believe strongly that the business will
You should consider using less than 100 percent of
your retirement funds.
You must believe strongly in your ability to lead the
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However, depending on the
amount of money you would otherwise finance through traditional
lending vehicles, that cost may still be lower than application and
origination fees for home equity or unsecured loans.
for against you.
It can all snowball out of control if you
don’t take the first step carefully and wisely.
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funds into a 401(k)?
tion if I want to invest retirement funds?
payment for an SBA loan?
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Is investing my retirement funds legal, and what does
the IRS think about this strategy?
home equity loans
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Investing Retirement Funds:
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began offering US Cellular there, too.
almost as much as the mini-storage facilities.
ment in his future.