Should You Use Retirement Funds for Your Business?

1
Business Loan vs. Retirement Funds Which Type of
Funds Should You Use to Finance a Business

• Heres how to decide between withdrawing
  retirement savings, taking out a business loan,
  and finding other funding options when starting a
  new business.

2
Types of business loans

• People are often afraid to apply for a business
  loan because they arent sure how these loans
  work or what options are available. If this
  sounds like you, then you are not alone.
  According to a recent survey, 60 of business
  owners admit not feeling knowledgeable about
  accounting or finances.

• Term loans
• Business lines of credit
• Invoice factoring
• Merchant cash advances
• Microloans

• SBA loans
• Equipment loans
• Invoice financing
• Business credit cards

3
Ways to finance a business with retirement funds

• In addition to traditional business loan options,
  there are also ways to finance a business using
  your retirement account. Dipping into retirement
  funds to start a business isnt right for
  everyone, but it can be done successfully, and,
  in some cases, may actually be the best option.

• Taxable Distribution
• 401 (k) Loan
• ROBS

4
Dangers of borrowing from your retirement to fund
a business

• Just because you can use your retirement savings
  to finance a new business doesnt mean you
  should. There are several dangers that come with
  dipping into these earmarked funds for your
  startup.

5
Why a business loan may be worth considering for
business financing

• Using retirement funds to start a new business is
  one option available to owners not interested in
  taking out a business loan. However, significant
  risks and personal liabilities can make or break
  your financial stability when going this route.
  For most entrepreneurs, the best choice for
  business financing is to look for a loan that
  meets your daily business needs and can help
  launch your company.

6
Other ways to finance a business

• Besides retirement savings and business loans,
  there are other ways to finance your business
  dreams.

7
Final thoughts

• Business financing isnt limited to just business
  loans. Alternatives such as crowdfunding,
  government funding programs, investors, and
  personal loans can give you the cash you need to
  get your business off the ground.
• By Stephanie Colestock

8
Why Choose Biz2Credit?

1. Trusted partner for franchise funding
2. Biz2Credit was founded in 2007 and has provided
   more than 10 billion in loans.
3. Dedicated support team
4. Tailored financing solutions

9
Thank You