If you’re thinking about starting or buying a business, you’ve probably got money on your mind. You probably know that the current SBA 7(a) loan interest rate is at 11.25% for loans over $50,001.

But don’t count yourself out. There are some great plays in the playbook you might not know about. Like ROBS, or Rollovers for Business Startups.

What is it? ROBS lets entrepreneurs use their retirement funds to start or buy a business without getting hit with early withdrawal penalties or taxes.

Sound interesting? Keep reading:

• Let me repeat: you can use your retirement funds as business capital without the early withdrawal and tax penalties that are usually assessed for early withdrawals.

• Also, since it’s not a loan, there are no interest payments involved with ROBS funding. That gives you a quicker path to profitability and a better chance of success.

• ROBS funding puts you on solid ground as you get your business up and running. It gives you improved cash flow and business equity.

• It’s not considered debt once you open your doors for business. Less debt means more funds available for operational expenses and more initial equity.

• With ROBS funding, you’re in control of your investment. Use your retirement funds to invest in your own business instead of rolling the dice with the stock market. You’re driving the bus on how your business performs, and ultimately on the return on your investment.

• You do not need personal collateral to qualify. If you have just $50,000 in a retirement account you can roll over, such as a 401(k), IRA, or 403(b), you qualify.

• ROBS funding can provide a down payment on a larger loan. If your 401(k) funds aren’t enough to start up your business, you can use them as a down payment on a larger SBA loan.

Want to know more? Here’s your action plan:

1. Check out this article that goes into more detail.

2. Reach out to me so I can introduce you to my trusted contacts at funding companies that specialize in ROBS. They’ll fill you in on everything you need to know, so you can figure out if this strategy may be the right fit.

As with any financial decision there are pros and cons to consider, but it’s wise to look into all available funding tools. Schedule a call with me to learn more about ROBS and the next steps you can take.