“I can’t get my business moving forward without capital and I can’t get capital without having an established (and solvent) business.” This is a vicious circle that many budding business owners face.
Getting traditional financing from a bank, such as a small business loan, requires the business to have revenue, prior tax returns, and/or established credit history. If the business owner doesn’t meet the bank’s minimum requirements, they are left to utilize alternative sources like personal savings, credit cards, borrow from friends and family, bring on investors and dilute equity, or pull equity from their home in order to pump capital into their business. Even if one or more of these options are viable, they may not be in the business owner’s best interest.
The good news is, if the business owner has an old 401(k) or traditional IRA (among a few other types of pre-tax retirement accounts) and... Click this link to continue reading the article that I wrote for Noobprenuer.com: The Loan That Can’t be Denied: How Solopreneurs Can Fund Their New Business and Keep an Established Business Afloat