Business funding is not immune to its share of mistruths and exaggerations. These business funding myths become widespread, not in an attempt to do harm, but as a result of little to no knowledge of the facts. At Tenet Financial Group, we’ve been experts in myth-busting some real doozies over the years, such as:
Myth: 401(k) Rollover Funding Isn’t IRS-Approved.
Fact: The process by which qualified retirement funds can be used to rollover and reinvested into another business – known as a Rollover as Business StartUp (ROBS) – has been approved by the IRS since the 1970s. As long as the approved process is followed during set-up and maintenance of the Rollover Funding Plan, an IRS audit is generally unlikely. In fact, no client of Tenet Financial Group has ever been audited by the IRS.
Myth: Without A Down Payment or Collateral, I Can’t Get A Loan.
Fact: Not all funding types require a down payment or collateral in order to be approved. Unsecured Lines of Credit, for example, are a no-collateral, no-financials required business funding option that even startups can utilize. Tenet Financial Group also assists entrepreneurs with low-dollar funding such as SBA Express Loans, another loan type that doesn’t require collateral.
Myth: My Business Has Been Open Three Years And It’s Too Late to Get Additional Working Capital.
Fact: The majority of businesses that close up shop do so because of a lack of funding. Working capital is necessary throughout the life of your business and becomes increasingly important as a business matures. Tenet Financial Group works with established businesses in numerous industries to help them gain access to additional working capital for inventory, equipment, expansion, and much more.
Having the right funding partner, someone who is truly consultative in exploring funding options for your business, greatly reduces the chances of confusion, misinformation and funding failure. Tenet Financial Group is waiting for your call: (888) 901-3335. Let’s get to work.
And, for more frequently asked questions, visit our FAQs page on our website.