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BizBen Helps Business Buyers Borrow from a 401k to Buy a Business |
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Posted Feb 22, 2007 |
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San Ramon, CA (BizBen) February 22, 2007 – BizBen.com has formed a partnership to allow business buyers to borrow from their 401k plans to buy a business. The self-directed plan lets people utilize retirement funds for a down payment or business purchase without taxes or penalties.
Most buyers rely on seller financing to buy a business. However, buyers still need a 10-30% down payment of their own funds to buy a business. The less a buyer has to borrow (and pay interest on) the more business they can purchase.
The type of buyer who typically utilizes this plan is essentially "buying a job." They are leaving corporate America either to retire or they are burned out. They decide to become their own boss and buy a small to medium-sized business. These buyers usually have sizeable 401K plans that they build up through their employment.
"With this service, you set up a special kind of trust that buys the business for you. This saves on interest or tax penalties that come with other funding options. You cannot borrow for a down payment if you want an SBA loan, which is the type of loan most of our buyers get," explains Peter Siegel, owner of BizBen.com.
Higher price tags on a business often comes with a higher cash flow. Business buyers can tap into their 401k or retirement funds and invest more money into the company. This is especially critical in the startup phase when there are more expenses.
To learn more about the program, request information at http://www.bizben.com/borrow-401k-to-buy-business.php.
About BizBen
BizBen.com was started in 1994 by industry expert Peter Siegel, MBA. He writes a syndicated small business blog. BizBen serves California business buyers, small business owners, business brokers, and real estate agents. Over 40,000 business buyers come to BizBen each day to search over 6000 California small business listings for sale.
For those seriously and actively searching for a business to buy in California, list your free businesses wanted to buy profile at http://www.bizben.com/wanted.php
To get new businesses for sale listings, sign up for BizBen's California business opportunities email reports at www.bizben.com/reports or RSS feeds at www.bizben.com/news/rss-listing.php. |
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Peter Siegel, MBA 
