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Need Financing? Here are some options to consider.

Below are some financing options and choices to help you secure financing to open a franchise.

Guidant Header

Guidant Financial

(Important Note: Guidant Financial Group is NOT a franchise opportunity. Guidant can provide you with a unique financing option for your new franchise)

  • Do you need financing for the purchase of your franchise?
  • Do you have money in an 401(k) or other retirement account?
  • Would you like to access the money in your retirement account to invest in your own business, without taking a taxable distribution?

Pension Transfer Trust

Pension Transfer Advisors

For example, if you have $100,000 in a retirement account, by setting up this type of trust plan, you will avoid paying out as much as $45,000 in taxes and penalties. That’s $45,000 more money to put into your new business!

This is not a loan – so there is no interest to pay – and no loan pay back required.

Is this legal? Yes! With the passage of The ERISA Act of 1974 and EGTRRA in 2001, taxpayers are allowed to use 401(k) and IRA monies to fund their own businesses.

Pango Financial

Pango Financial

Pango Financial is the price leader for investing your retirement savings tax deferred and penalty free in your business. The DreamSpark plan investment takes your business from a dream to reality. Use your retirement funds, 401(k) or Individual Retirement Account (IRA) savings to capitalize your business through the Pango DreamSpark plan. We take the guesswork out of financing your new business while you watch your investment grow as your business succeeds. As the price leader, we invite you to comparison shop. You’ll find that our DreamSpark plan provides you with the best value at the lowest cost. We know every dollar counts.

Pango is the only provider with an online and “green” certified application and 24/7 account access. Act now to take advantage of Pango’s substantial savings and start your DreamSpark plan today. Your success is our passion!

1 American IRA

1 American IRA and 401(k) Retirement Plan Rollover

Save money – eliminate penalties and taxes

Tapping into your retirement funds can be expensive. Distributions before retirement age can cost you up to 50% in taxes and penalties. But with our Business and Franchising Funding Plan you can use the retirement funds you've diligently saved to start or grow your own business – without taxes or penalties.

This is NOT a franchise or business opportunity. This is a service offered to those seeking to purchase a franchise or business using their retirement funds. Click Here to get started today.

How to Finance a Franchise Purchase

Bank loans unsecured by collateral are relatively rare, even for those with good credit. In addition to securing a loan with a mortgage on your home or other asset, be ready to be asked to put your own money into the deal, typically about 20% of the amount needed. Even with healthy businesses and solid collateral, most bank loans to new franchisees occur when a borrower has established relationships with a banker, or has previous experience, or is a figure in the community. If that’s not you, consider a loan backed by the U.S. Small Business Administration (SBA).

SBA loans are partially guaranteed by the government, making them less risky. The standard SBA loan for franchisees is known as the 7(a), which is issued by a bank or other qualified lender, and partly guaranteed against default by the government. Because of that backing, such loans are seen as relatively low-risk.

SBA loans of five- to six-year maturities can provide short-term working capital and equipment. Real-estate loans can run for 20 years or more. About 10% of all SBA loans go to franchisees, with the size running between $250,000 and $500,000, and maximum of $2 million. Most of that money is for franchise entry fees, improvements or working capital. Borrowers must be creditworthy, typically must contribute some equity, and are expected to repay the SBA loan out of the franchise’s cash flow.

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