There is More Than One Way to Skin the Cat. Here are some examples of ways to purchase the business you want:
Common
- Cash.
- Stocks and Bonds.
- Certificates of Deposit.
- Gifts/Loans from family and friends.
- Second mortgages and other real estate loans.
- Seller financing.
- Credit card financing.
Moderately Common
- SBA Financing/bank loans/bank lines of credit.
- Retirement Accounts.
- Borrowing against a different existing business.
- Asset sales.
Rare
- Customer and supplier financing.
- Venture capital.
- Small business investment companies.
- Private placement.
- Convertible debt financing.
USE 401K/IRA’S TO BUY A BUSINESS WITHOUT PENALTY
Clarification of Self Directed Retirement Plans
There is a lot is misinformation regarding the use of 401K/IRA funds to buy businesses. Since 1999, many people have availed themselves of these programs. It appears that there are a lot of predators out there offering substandard programs.
We thought it a good idea to provide some simple straight talk about the plans and provide a few resources.
- Most businesses/franchises qualify for the use of funds.
- There is no penalty for transferring or using your funds if done correctly.
- Your basis remains intact which is great for today’s environment.
- You may even secure a “favorable ruling” by the IRS, documenting the validity of your transaction.
Are you ready to learn more?
Valued Representation by your VR Intermediary will include exploring these and other types of favorable financing options available to you as a qualified buyer.