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Step 6 in StartupNation`s 10 Steps to Open For Business tells you all about how to find the funding for your business.
But these 2 articles talk about some Creative Business Financing Options:
Got any questions about how to get money to get your business started? Fire away & let`s get some answers from the StartupNation community.
There is a company called Guidant Financial Group who does this exact thing. My mom actually had one of these accounts set up by them, and she is very happy with it. Their website is www.guidantfinancial.com if you want to check them out.
I`ve seen business owners set up a Solo(k) Plan under their business tax ID. Then they make a direct rollover of all old 401(k)`s and pensions (plus all other IRA`s if you want) into this new Solo(k). Once all the assets are consolidated this way, and if the Solo(k) Plan they establish permits, they may borrow as an individual up to $50,000 or 50% of the account balance, which ever is less. The rules to avoid the Solo(k) loan from being taxable require they repay all of the loan within five years; that they make repayments at least quarterly using level amortization (i.e. no balloon payments at the end); and they must charge themselves a reasonable rate of interest. They also need a promissory note that meets IRS standards before the loan is disbursed.
This Solo(k) method helps cash-flow in that you can retain every needed dollar in the company. You`re not draining cash from the company as a salary to meet your personal expenses because you`ve got the loan proceeeds in your personal checking account to pay your bills.
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