Alternative Financing for Business Start-ups Grows 80 Percent Over Five Years
Entrepreneurs Increasingly Turn to Non-Traditional Options to Fund their Businesses
Bellevue, Wash. (PRWEB) June 03, 2014 - Guidant Financial today announced an 80-percent increase in start-up companies choosing alternative financing to help fund their companies over the five-year period 2009-2013. Data comes from a review of current Guidant Financial customers across all 50 states. The review shows strong year-over-year increases for much of the country and highlights the top states for growth.
California tops the list in terms of the highest volume of entrepreneurs leveraging Rollovers for Business Start-ups (ROBS) from Guidant Financial to help finance their businesses from 2009 to 2013, with nearly 700 businesses over the five-year period. California is followed by Texas, Florida, Washington and Georgia. Combined, the five states represent more than 2,000 new businesses that have turned to alternative financing to help take their dreams from concept to reality.
Guidant Financial attributes the growth to increased awareness of the option for entrepreneurs to leverage existing retirement investments to fund their small business or franchise purchase without taking a taxable distribution. ROBS can be used to finance a business venture in entirety or to bridge a “funding gap” between traditional sources such as SBA loans and available investable assets.
Over the same five years, Guidant Financial estimates approximately half of its clients used ROBS to purchase a new or existing franchise, and half to start a new entrepreneurial venture. So far in 2014, however, interest has moved slightly more toward franchising, with 32 percent of clients starting a new franchise, 34 percent buying an existing business and 31 percent financing their own venture.
Currently, Guidant Financial’s ROBS business is seeing significant momentum in the senior services industry, personal services such as haircutting or dry cleaning, and business services. Manufacturing and technology comes in at a close fourth place in terms of industry concentrations. The quick service restaurant (QSR) segment is also seeing a lot of traction.
As the premier provider of ROBS, Guidant Financial has helped more than 8,500 entrepreneurs in all 50 states to invest over $3 billion in retirement funds to start small businesses, resulting in more than 60,000 U.S. jobs thus far.
About Guidant Financial
Guidant Financial helps people create the life they want through innovative small business financing. They are the premier provider of rollovers for business start-ups (ROBS). Guidant's services allow people from all walks of life the freedom to purchase small businesses and franchises using their retirement funds without taking a taxable distribution or getting a loan, in addition to offering traditional funding options such as SBA loans, portfolio loans and unsecured credit. Visit Guidant on the Web at guidantfinancial.com.
Hollywood Public Relations
781-378-1483 Ext: 6