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Are you considering starting a cleaning business franchise but unsure about the financing options available to you? In this blog post, we'll delve into two popular choices: the Rob's rollover plan and SBA loans. Each option has its pros and cons, and understanding them will help you make an informed decision. Let's explore further!
The Rob's Rollover Plan: A Promising Alternative to SBA Loans
If your retirement account is eligible for a rollover in a Rob's plan, this could be an excellent financing option for you. Unlike a loan, you won't have to repay the amount you use from your retirement account. It offers flexibility and avoids the need for additional collateral or liens on your real estate holdings.
The Rob's rollover plan involves setting up a self-directed 401(k) that can make an investment in your new cleaning franchise concept. By doing this, your retirement account can be used to acquire the business entity for the franchise. However, it's crucial to determine if your retirement plan qualifies for this type of rollover. Seeking advice from an expert in Rob's plans is recommended.
Evaluating Your Retirement Account and SBA Loans
Before diving into financing options, it's essential to assess the performance of your retirement account. If your account is generating significant returns, investing in your own business might be a viable and financially rewarding decision. On the other hand, if the returns are minimal, using the funds to establish your cleaning business could make more sense in the long run.
Suppose you opt for an SBA loan to finance your cleaning business. In that case, it's important to note that collateral requirements vary based on the loan amount. If you keep the loan amount under a certain threshold, you may be able to bypass the collateral shortfall. However, for loans exceeding $150,000, additional collateral will likely be required by the lender.
Seeking Expert Advice for SBA Financing and Other Solutions
Navigating the complexities of SBA financing can be overwhelming, especially if you're unfamiliar with the 7A or 504 loan process. Whether you're starting a business from scratch, acquiring an existing one, or expanding your current enterprise, understanding the intricacies of SBA loans is crucial. Fortunately, there are professionals like Beau, with over 20 years of experience in the lending industry, who can guide you through the process.
If you have questions about SBA financing or any other type of financing, don't hesitate to book a call with Beau. He offers valuable insights and can provide assistance with a variety of financing options to suit your unique needs. Simply check the link below to schedule a call.
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Remember, understanding your financing options is essential when starting a cleaning business franchise. By exploring alternatives like the Rob's rollover plan and SBA loans, you can make an informed decision that sets you up for success. Don't hesitate to seek expert advice and take advantage of the resources available to you. Good luck on your entrepreneurial journey!