From the course: Financing Your Business

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Retirement funds

Retirement funds

From the course: Financing Your Business

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Retirement funds

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- Retirement funds are another way to fund your small business without a credit check. In fact, there will be no credit check involved at all. One way is to borrow against your retirement funds. You can't borrow against an IRA but you may have a 401k or a 401b or other type of retirement fund that lets you borrow up to a certain percentage of the funds in your retirement account and then pay that back to yourself with interest going to yourself. That's one possibility. Another would be to cash in retirement funds. Now, depending on the type of retirement fund you have, there may be a penalty assessed for early withdraw and you may have to pay taxes. So you definitely want to talk this over with your accountant before you move forward. You don't want this to be much more expensive than other sources of funding for your business. A third option is to use a self-funded retirement plan that invests in your business. These…

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