Creative-Finance
Creative-Finance
option using
your IRA or 401k?
Without early
distribution penalties?
Can this be True?
Yes
it can and it is! Many people
utilize
this creative-finance option everyday to start their
home-based
business! You can use this to buy that franchise that you’ve always
wanted.
A couple of
Key Benefits of this Creative-Finance option:
- Your IRA or 401k when properly
set-up becomes an investment into your
home-based business.
- This investment means (no loan
payment) which in turn means the money
you earn can now be re-invested into your home-based business or
franchise
instead of paying Mr. Banker
This type of
creative
financing can be combined with other typesof funding including SBA
loans and
other
secured or unsecured loans. This could allow you to develop a nice
financing
package for your home-based business.
What you are
basically doing is instead of having your IRA or 401k retirement
invested in
stocks or bonds. You are choosing to invest it in yourself and your
business when you use this type of creative
financing.
Is that a
risk that you are willing to take; only you and your family can make
that
decision?
Tip: Please contact
someone who can
give you all the facts on how to proceed correctly. Make sure you have
all the details and
know all the risks,
because this
is your retirement money you are
risking!
More Creative-Finance
Options
Vendor or Supplier
Financing: If your home-based business
has products or
services that you can buy on business
credit, use it. I am
speaking to you now as a former Credit Manager; we would often extend
credit to
small companies many who did not deserve it. Why? Because we had our
own
agenda, and it could have been for any number of reasons for us to
extend
credit. Such as to increasing sales or maybe we felt there maybe an
opportunity
for increased business from you if your company was to take off. Plus
depending
on the size of the company you approach anything from $500 to $5,000 is
small
risk to them.
Please note: This is not
like a credit card
where you can pay a small monthly payment. It is to be paid in full
according
to the supplier’s terms (usually in 30 days but not always).
But
on the bright side it
helps reduce the start up capital you need and helps to establish your
business
credit.
Factoring: If you are already in business
or are buying an existing home–based
business than Factoring is an excellent way to bring in needed cash
without
going to a bank for a loan.
What is it? Glad you asked it is simply
taking your account
receivable and selling them for immediate cash less a small fee. It is
not
based on your credit it is based on the age of the receivables and your
customers’ credit.
Example:
you have a home-based cleaning business that has 100 customers that pay
you in
30 days terms. You could contact a factoring company and they would pay
you
(75-90%) of those receivables. So
let’s see 100 customers owing $50,000 you
could get in a matter of days anywhere from $37,500 to $45,000.
The
75 to 90% is your
advance the remaining 10 to 25% is held back in reserve until your
customer
pays their invoice. Once that is done you receive the reserve less a
small fee.
One More Creative-Finance
option
Bartering: What if you
exchange your products or services for some products or services you
need.
That’s Bartering no money is exchanged, this could be a big boost to
reduce
your start up costs.
Why
Barter? There are many reasons to
consider here are just a few:
- Reduce start up
capital for your home-based business
- Great way to open
doors to new customers
- Barter customers
often can send paying customers your way
Sorry Guy’s Bartering is
taxable, no
way of getting around Uncle Sam on this one!
Speaking of Taxes
will be looking for every legal tax break you can get, be notified when
it hits the website. Sign up for Our newsletter Now!!!
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