Many banks do not lend today without collateral, and entrepreneurs look for additional funding options to help launch their business.
In a survey on alternative investment strategies, “Retirement Fund Programs in Franchising,” FRANdata, shows a growing number of businesses using rollover funding to start or recapitalize a business. For almost 40% of respondents, the total required investment needed to fund the start-up of their business came from the use of such rollover retirement funds.
Additionally, they are able to finance their investment by using only a portion of their retirement assets, investing a weighted average of 52% of total Retirement assets. Which still allows them to keep their safety net of retirement funds. The best part is, when rolling over retirement funds to start a business, you do not incur penalties or tax and can start your business debt free. (more…)