How ROBS Financing Is Investing in Your Future

How can you invest in your future with ROBS financing?

If you’re considering going into business for yourself, your retirement account can be an effective source of startup funding. With a Rollover for Business Startups (ROBS), you create a 401(k) program in your business’s name and roll your existing funds into the new program. This provides business funding that does not require additional taxes or withdrawal penalties.

Learn more about the benefits of ROBS financing with Pango Financial’s helpful guide.

Start Your Business Debt Free

Because 401(k) small business financing is not a loan, you don’t have to factor repayments into your monthly budget. The funds in your 401(k) are already yours, and you can use them for essential startup costs like hiring employees and renting office space.

Avoid Putting Up Collateral

Many small business owners find themselves in a pickle when they put up their personal property as loan collateral and are unable to pay back business loans. With 401(k) financing, however, your personal and business assets stay separate. You won’t risk losing any personal property if your business falls on hard times.

Retain Control of Your Business

When small business owners seek out loans and investments from venture capital firms, they often sell away control of the business, bit by bit. But with ROBS financing, the startup money is yours, and so is control of your company. When you retain that financial and creative control, you can make your own decisions to shape your business’s future.

See Profits Sooner

Loan repayments take a sizeable chunk out of a business’s profits every month. But when you start your business debt-free with your own 401(k) funds, you put yourself on a quicker path to higher profits. 401(k) financing eliminates the need to pay taxes and penalties as well, and you’re not beholden to lenders every month.

As you lay the foundation for your small business venture, invest in your future with ROBS financing. Rolling your 401(k) funds into a new account allows you to start your business free of debt, so you can see success sooner rather than later.

Curious about other business funding options available to you? Head over to Pango Financial’s funding solutions tool to learn more about how to secure startup capital for your business.