As a Franchise Broker, you play a pivotal role in guiding prospective buyers through the intricate process of becoming business owners.
As a result, your candidates often come to you with a vision—eager to dive into the world of franchise ownership—but find themselves with questions when it comes to financing this future.
Many prospective franchise buyers wonder “How am I going to get funding to buy my new
franchise?”
It’s here that you, their trusted advisor, are armed with the knowledge and tools to present them with a funding solution that may not have crossed their minds: leveraging a 401k to finance their franchise purchase.
Introducing this funding option to your candidates removes common barriers associated with traditional bank loans. No more daunting loan applications, no interest rates to worry about, and no repayment stress.
Instead, your buyers can take advantage of the opportunity of using their 401k or IRA to
fund their new business.
What do Candidates desire as they go through the process of buying a franchise?
- Expert Guidance: They look to you for wisdom and insight, seeking your expertise to navigate the franchise selection process.
- A Clear Path Forward: They hope for a straightforward route to franchise ownership, free from usual financial hurdles and confusion.
- Attractive Funding Options: They crave funding solutions that are not only accessible but also financially beneficial. With the innovative approach of 401k Business Funding, you can offer them just that—a smart, effective way to finance their franchise using their own resources.
This approach empowers Buyers while at the same time strengthening your reputation as a Broker who goes above and beyond.
Let’s get into how 401k Business Funding is the option you can turn to time and time again.
401k Business Funding: A Viable Option for Franchise Candidates
With the right strategic planning and professional guidance, your candidates can transform their
401k from a passive account into a dynamic tool for funding their new business.
401k Business Funding has 23 years expertise in leveraging these funds, in tandem with securing Small Business Administration (SBA) loans. This opens up new possibilities for franchise ownership, making the dream more accessible than ever.
Partnering with the SBA
In a pioneering move in 2003, 401k Business Funding embarked on a collaboration with the Small Business Administration (SBA) that significantly broadened the financial possibilities for prospective franchise owners.
Together, they crafted waiver request documents that have since enabled countless entrepreneurs to leverage their 401k savings as a viable down payment for SBA loans. This innovative approach means clients can now utilize their retirement savings without incurring the typical financial penalties associated with early withdrawals or tax implications.
Benefits Over Traditional Bank Loans
When your candidates consider financing options, the traditional bank loan route can appear formidable, fraught with rigorous application processes, high-interest rates, and the stress of repayment schedules.
Here, the 401k Business Funding model presents a compelling alternative, offering several often-overlooked benefits:
- Tax-Free, Penalty-Free Access: Unlike taking distributions, which incur taxes and penalties, rolling over 401k funds into a new business venture avoids these financial pitfalls. Candidates can leverage $35-$42,000 more for every $100,000 of their savings, effectively receiving governmental support in financing their franchise purchase.
- No Repayment Stress: By using their 401k for funding, candidates eliminate the need for bank loans, interest payments, and repayment worries. This freedom allows them to focus fully on growing their new business with financial peace of mind.
- Eligibility for SBA Loans: This vendor’s pioneering methods enable candidates to use their 401k funds as a down payment for SBA loans, satisfying equity requirements and enhancing their loan application’s attractiveness. This dual strategy not only increases their funding options but also positions them favorably in the eyes of lenders.
401k Business Funding vs. Other Funding Firms
As Franchise Brokers, when presenting funding options to your candidates, it’s crucial to recommend partners who not only offer value but also a track record of reliable and effective service. 401k Business Funding stands out in the field for several compelling reasons.
Unique Advantages and Commitment to Clients
- Competitive Pricing: This firm’s fees are notably 40% lower than those charged by other firms, making the financial aspect of their service significantly more accessible.
- No Annual Maintenance Fees: Unlike competitors, this funding option does not charge any annual maintenance fees, removing a common financial burden on franchise candidates.
- No Upfront Payments Required: Candidates are not asked to pay any money upfront. This policy eliminates out-of-pocket expenses and reflects the firm’s confidence in its service.
- Comprehensive Client Support: They advance several thousands of dollars on behalf of each client, taking on the initial financial burden to facilitate the funding process.
- Trust-Based Payment Model: The firm operates on a trust basis, asking for payment only after the candidates have received 100% of their funding. This approach underscores their commitment to client satisfaction and success.
- Rigorous Attention to Detail: Their staff meticulously handles every step of the tax-free rollover process for their clients, ensuring compliance with all IRS codes and Department of Labor (DOL) rulings.
- Proven Track Record: Over the past 23 years, the firm has gathered hundreds of references from satisfied clients who were able to buy a franchise thanks to their help, underscoring their effectiveness and reliability.
- Long-Term Partnership: This firm is known for its ongoing support to clients at no additional charge, even years after the initial funding plan setup. This level of aftercare is rare in the industry and speaks volumes about their dedication to their clients’ long-term success.
A Real Client’s Testimonial
” Dean and his team have been the best to work with over the years. He helped me get my business started in 2013 and has been there along the Journey whenever I needed advice. I believe without his team we would not have been able to open and run my business for the last 10 years. And now that this chapter of our life is over and we are looking towards full retirement, Dean has been there again to help us close the business down, without charge, to make sure we comply with applicable ERISA laws.” – Robert Gaffey, 401k Funding Client.
For your candidates, choosing the right funding partner is as critical as selecting the right franchise.
By recommending 401k Business Funding, you’re guiding them towards a partner that offers financial efficiency, unwavering support, and a proven track record of facilitating successful entries into franchise ownership.
Make the Financial Leap More Accessible with Attractive Pricing
One of the standout features that sets this funding option apart is its transparent and accessible pricing model.
At a flat fee of $4,950, their service is comprehensive and significantly more affordable—40% lower, in fact—compared to the industry standard. This difference is particularly notable given that many other firms impose annual plan maintenance fees ranging between $1,200 to $1,400, in addition to requiring their fees to be paid upfront.
The 401k Business Funding approach is fundamentally different. Recognizing the financial pressures faced by many aspiring franchise owners, they have eliminated out-of-pocket fees due at the initiation of the service. Instead, payment is only requested after the completion of their work and once the clients have full access to their funds.
Next Steps in Franchise Funding
For your clients that think this is something they may want to look into, invite them to visit:
https://fbamembers.com/vendor/401k-business-funding-llc/.
Here, you’ll find Dean’s contact information, pricing information, and more overview needed to
confidently send your candidates this funding option.
You might want to remind your clients, by rolling over their 401k or IRA to fund their new
business, instead of taking a taxable distribution, they are getting to keep that 35% to 42%
they would have paid to the IRS. It’s pretty much a no brainer.
Find the best franchise opportunity for you: https://www.franchiseba.com/find-franchises/