Statistics show that more than one million people in the United States starting a new business each year. That figure would be much higher if all employers who had the necessary funding for an ongoing business. To fulfill their dream of business ownership, entrepreneurs are finding new and innovative ways to finance their new businesses.

One of these new financing options is the use of an existing individual retirement funds, pension, profit-sharing 401 (k), IRA, allowing that person to start the business he or she has always dreamed of without tax penalties, consequences or mountains of debt. Employment under the Law on Retirement Income Security (ERISA), retirement funds can be transferred to use the capital for business investment or operations. If a person has more than $ 40,000 in a retirement account is not currently employed by the company that owns the funds, he or she qualifies for the Small Business Administration (SBA)-known focus of financing to start a business.

Retirement funds can be used for any commercial purposes, including:

• Buying an existing business or franchise
• Start-up, such as the purchase of property, equipment, etc.
• Working capital, including payment of salaries, fees franchise, etc.
• Business expansion, including additional funding of exemptions, local, etc.
• Equity toward SBA or other loans.

The idea of an immersion in retirement may cause some apprehension. Through this investment strategy of a person actually has more control over their retirement, instead of having a minimum growth depends on the bag, the savings are being invested in the business itself.

This approach often allows a person to set aside more money for retirement than ever. “Today the businessman is facing an environment of fierce competition, complexity and opportunity to start a business the right way is more important than ever”. “This financing method is a good option for someone who has accumulated funds in their retirement accounts.

The whole process usually takes two to four weeks to complete, and can be done by phone, email, fax, regular mail and FedEx. Working with an employee benefit plan expert with experience, starting a business is as easy as these four steps:

1. Establish a C-corporation.
2. The new entity will create a retirement plan.
3. Funds crept into the society of the new retirement plan.
4. The new retirement plan purchases of securities of the company.

“So many people have seen their dream of owning your own business go out the window due to lack of financing options. We help people achieve that dream every day with the money they already have,” says Fischer. If you are ready to explore innovative financing option, be sure to consult an expert to guide you through the specialized process.

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