We know funding
so you don't have to.
Working with the pros at Tenet Financial Group means you have a seasoned team in your corner. We understand all the pros and cons of each funding options for your small business and will help you make an informed decision.
We know
funding so you
don't have to.
Working with the pros at Tenet Financial Group means you have a seasoned team in your corner. We understand all the pros and cons of each funding options for your small business and we will help you make an informed decision.
Did you know you can fund a franchise business by rolling over your 401(k) – and it’s approved by the IRS?
401(k) Funding – commonly called a Rollover as Business Startup (ROBS) or Self-Directed 401(k) – is a very unique non-debt funding opportunity. That’s right! It’s not a loan, it doesn’t have to be repaid, and there is no tax or penalty for using it.
Keep reading to learn more from the below helpful FAQs.
What are 401(k) Rollovers As Business Startups?
401(K) Rollovers are a means of funding a new business or franchise using pre-tax retirement funds as the source of the dollars. Entrepreneurs who choose this method simply take their retirement funds and “rollover” the funds into a new Plan that then invests in the company – your new franchise or small business!
How 401(k) Rollovers As Business Startups Work?
A Rollover involves four critical steps, among them the establishment of a C-Corporation and a 401(k) Plan. A qualified Third-Party Administrator is responsible for following the letter of the law as it relates to the design, installation, and administration of the Plan to remain in IRS compliance.
Why 401(k) Rollovers As Business Startups Make Sense?
A Rollover is not a loan and never has to be repaid, thus the business is starting out on day one with less debt (or even no debt) related to the financing of the business. Many choose this option as a means of preserving their cash. And – don’t miss this – many use a Rollover to satisfy the non-borrowed equity injection or cash reserves needed to meet lender requirements. A Rollover can be used in conjunction with a loan or as a stand-alone funding option.
401(k) Business Financing (Rollovers for Business Startups) What is it and how does it work?
Debt-Free Funding. No Tax Penalties.
Use your retirement funds to start or buy a business or franchise. You’ll avoid tax penalties and extra debt, giving you a cash-rich start.
A Quicker Path to Profitability.
401(k) business financing isn’t a loan or a distribution. You don’t have to worry about monthly payments or racking up interest. With 401(k) business financing, you make money sooner rather than later.
Easy to Qualify.
You don’t need to risk your home as collateral or have a minimum credit score. If you have $50,000 in pre-tax such as a Keogh, traditional 401(k), 457, or TSP for example, you can use Rollovers for Business Startups (ROBS) to fund your business.
401(k) Business Financing (Rollovers for Business Startups) -- What is it and how does it work?
Debt-Free Funding. No Tax Penalties.
Use your retirement funds to start or buy a business or franchise. You’ll avoid tax penalties and extra debt, giving you a cash-rich start.
A Quicker Path to Profitability.
401(k) business financing isn’t a loan or a distribution. You don’t have to worry about monthly payments or racking up interest. With 401(k) business financing, you make money sooner rather than later.
Easy to Qualify.
You don’t need to risk your home as collateral or have a minimum credit score. If you have $50,000 in rollable retirement funds, you can use Rollovers for Business Startups (ROBS) to fund your business.
Key points regarding 401(k) ROBS startup funding
If you have a 401(k)/IRA, your money is invested in one or more companies. You have the opportunity and right to roll over your retirement money and invest it into “your company” by buying stock in your new company, tax-deferred and penalty-free, and potentially start your company debt-free.
Secure funding FAST – typically 3-4 weeks
Accelerate business profitability by managing the amount of debt your new business takes on
Tax deferred Exit Strategy Program when it comes time to sell your business
Gain business equity and improved cash flow position from start
Set aside tax deductible retirement savings, up to $73,500 (over age 50) per year
Optimize business equity and value in your business from the very beginning
Why Choose Tenet Financial Group as your Third-Party Administrator (TPA)?
Tenet Financial Group is your “One-Stop Source” for all your funding needs. Our experienced team of professionals knows franchising and business capitalization and will consult with you to explore your funding opportunities and determine the best option(s) for you.
Knowledge
There are a variety of funding streams available for today’s prospective business owner. From self-directed 401(k) plans to SBA loans, Tenet applies broad expertise to simplify the process of funding your business, so you can focus on doing the work you love.
Approach
Our clients aren’t commodities: they’re partners. We’re focused on service, not sales. Our advisors are experts who follow IRS requirements to the letter: no shortcuts. Expect an approach that offers superior protection every step of the way.
Culture
Our team of business financial advisors has more than 100 years of combined experience in funding plan design, execution and administration. Working with Tenet means having proven financial expertise in your corner, and peace of mind in your business.
Pride
We take tremendous pride in the work we do. Our efforts help bring new businesses to life and help individuals maintain a livelihood they can be proud of. We know that your dream hinges on the support you get from our team, which is why we always take the time to do right by you.
Why Choose Tenet Financial Group?
Knowledge
There are a variety of funding streams available for today’s prospective business owner. From self-directed 401(k) plans to SBA loans, Tenet applies broad expertise to simplify the process of funding your business, so you can focus on doing the work you love.
Approach
Our clients aren’t commodities: they’re partners. We’re focused on service, not sales. Our advisors are experts who follow IRS requirements to the letter: no shortcuts. Expect an approach that offers superior protection every step of the way.
Culture
Our team of business financial advisors has more than 75 years of combined experience in funding plan design, execution and administration. Working with Tenet means having proven financial expertise in your corner, and peace of mind in your business.
Pride
We take tremendous pride in the work we do. Our efforts help bring new businesses to life and help individuals maintain a livelihood they can be proud of. We know that your dream hinges on the support you get from our team, which is why we always take the time to do right by you.
What our clients say about tenet financial group
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