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Benetrends Financial 401(k) business financing review

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Access retirement funds to start your new business in just 10 days.

  • Best for entrepreneurs with enough cash built up in their retirement accounts to finance their next great venture.
  • Pick something else if you’re not confident your startup will succeed — you risk losing all of your retirement funds if it fails.

Details

Product NameBenetrends Financial 401(k) business financing plans
RequirementsEligible tax-deferred retirement account, registered as a C corporation that’s up and running, employee of the business

How much will it cost me?

You’ll be on the hook for a one-time setup fee and continual monthly fees with Benetrends’ ROBS plan.

One-time setup fee: $4,995

The setup fee covers these services and more:

  • Establishing a C corporation
  • Filling out your annual IRS Form 5500
  • Setting up a new qualified retirement plan
  • Helping you identify a plan custodian
  • Filling out temporary IRA documents or initiating the shift of funds from your current IRA
  • Opening a corporate bank account, if needed
  • Preparing the forms to begin the transfer of your retirement funds to the new 401(k) 
  • Responding to IRS or Department of Labor (DOL) audits, if needed

Monthly fee: $145 — or $1,740 per year

The monthly fee covers these services as needed:

  • In-house team to maintain and administer your plan 
  • Making amendments as required by the IRS and DOL on a monthly or annual basis 
  • Rainmaker guarantee and audit protection
  • Computing plan contributions
  • Other monthly coverage changes or additions
  • Employee communication 

How it works

A ROBS plan allows small businesses and startups to use funds from their 401(k) or IRA retirement account to finance their business. Since a ROBS plan isn’t technically a loan, you don’t have to pay the funds back, nor do you get charged interest. If you qualify, funds can be deposited into your bank account within 10 to 20 days. 

What do I need to qualify? 

To qualify for a ROBS plan, you need to meet the following requirements:

  • Eligible tax-deferred retirement account 
  • Registered as a C corporation
  • Your business is up and running
  • You’re an employee of your business 

Even if you don’t meet these criteria just yet, Benetrends can help you get up and running so you do qualify.

What information do I need to apply?

Benetrends has a short online prequalification form that asks for the following information:

  • Total cash in all of your bank accounts, CDs and stocks
  • Total value in your retirement accounts
  • Total value of non-retirement investments
  • Credit score
  • Personal contact information

What industries does Benetrends Financial work with?

Benetrends works with businesses in all industries.

What other types of financing does Benetrends Financial offer?

Besides ROBS plans, Benetrends also offers the following funding options and services:

  • Small business corporate capitalization. This plan helps entrepreneurs build wealth and mitigate taxes when they use a ROBS or SBA loan to fund their new business. 
  • Startup and small business loans. Choose from SBA loans, secured lines of credit, equipment financing and traditional business loans to get the funding you need to start or expand your small business.
  • Payroll management. Benetrends partners with ADP to offer small business owners preferred pricing on payroll management, as well as added compliance and HR support.
  • Credit card processing. Get access to better rates and services for all card types — including American Express — through Benetrends’ partnership with TSYS credit card processing.

Pros

  • Legal support in case of an audit
  • Competitive setup fees
  • A+ rating on Better Business Bureau and 5-star reviews

Cons

  • Fairly high monthly fee
  • Must establish a C corporation first

See other top business loan options

Data indicated here is updated regularly

Name Product Filter Values Loan amount APR Requirements
First Down Funding business loans
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$500 – $5,000,000
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ROK Financial business loans
$10,000 – $5,000,000
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OnDeck small business loans
$5,000 – $250,000
As low as 9.99%
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Rapid Finance small business loans
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Is Benetrends Financial legit?

Yes, Benetrends Financial is a legit company that specializes in helping small business owners fund their startup by using money in their retirement account. Its website offers industry-standard SSL encryption to protect any information you submit online. And it outlines multiple ways to get in touch with customer service on its website, including by mail, email, phone and social media.

Benetrends Financial reviews and complaints

BBB accredited Yes
BBB rating A+
BBB customer reviews 5 out of 5 stars, based on 10 customer reviews
Customer reviews verified as of 12 October 2020

Yes, Benetrends earns a perfect 5-star rating on the Better Business Bureau (BBB), with customers praising the company’s excellent customer service team and seamless application process. It doesn’t have a page on Trustpilot as of July 2020.

How do I apply?

You can prequalify for a ROBS plan through Benetrends Financial by filling out an online form. Follow these steps to get started:

  1. Visit the Benetrends Financial website and click Read More under 401(k)/IRA Business Funding.
  2. Scroll down and click Prequalify.
  3. Enter the total cash amount in all of your accounts, as well as the total value of your retirement and non-retirement investments.
  4. Enter your credit score and contact information.
  5. Click Calculate Now.

What happens after I apply?

A representative from Benetrends Financial will reach out to discuss how to start your ROBS. Generally, the whole process takes less than three weeks, and you can have funds in your account within 10 to 20 days from your date of approval.

How do repayments work with Benetrends Financial?

Since a ROBS plan isn’t technically a loan, you won’t have to worry about making any repayments.

Compare Benetrends Financial to other lenders with our guide to business loans.

Frequently asked questions

Expert review

Kathryn Pomroy

Review by


Kathryn Pomroy was a writer for Finder, specializing in loans. She has written for dozens of major publications, small businesses and many well-known personal finance companies, including LendingTree, Money Crashers, Quickbooks/Intuit, BankRate, LendEDU and more. Kathryn holds a BA in Journalism and drinks super bold coffee while eating peanut butter and honey toast.

Expert review

Benetrends Financial is ideal for entrepreneurs with a good amount of money in their retirement accounts who are confident their new business will success. They can access funds in as little as 10 days by rolling over their retirement funds into their new C corporation. Benetrends’ setup fees are competitive compared to other Rollover for Business Startup (ROBS) providers out there. And you’ll have access to legal support in case of an audit.

But like with all ROBS plans, you risk losing your retirement savings should your startup go under. And you’ll be on the hook for a monthly fee of $145 — high compared to other ROBS providers out there.

Not sure a ROBS plan is right for you? Explore your other business loan options below.

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