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Requirements | Operating business, C corporation or willing to convert to one, eligible retirement, employee of your business |
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CatchFire Funding charges a one-time fee to help set up your new 401(k) plan and rollover the funds, and an ongoing monthly or yearly fee to maintain the new plan.
The setup fee of $4,995 will cover assistance with:
The annual fee of $1,164 is a savings of $264 over the monthly payment plan of $199 a month. These ongoing fees cover:
CatchFire Funding offers a 10% discount off the setup fee to eligible veterans. It also donates a portion of the fee to the Wounded Warrior Project.
With a ROBS plan, you rollover your current 401(k) or other qualifying retirement plan to finance a new business or add capital to your existing business. Because it's self-directed, you have complete control over the investments.
The process is approved by the IRS and allows you to use your retirement savings without incurring penalties. And if you need additional funding, you may be able to use your 401(k) plan as a down payment for an SBA loan with CatchFire Funding.
To qualify for 401(k) business financing through Catchfire Funding, you’ll need to meet a few eligibility criteria:
To apply online, you need to provide your:
CatchFire Funding states that it works with almost all types of businesses. However, you may have trouble qualifying if a significant portion of your business involves lending or investing capital.
Yes, CatchFire Funding is a legit lender that established in 2009 and has helped fund franchises for well-known brands such as 7-Eleven, Allstate and Menchie’s. It has a secure online application that uses DocuSign to both protect your information and allow you to complete the entire process on its website.
BBB accredited | Yes |
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BBB rating | A+ |
Customer reviews verified as of | 12 October 2020 |
For a company who has been in business for over 10 years, there are very few direct customer reviews available online. It only has two reviews on the Better Business Bureau (BBB) website. And Trustpilot doesn’t have a listing for the lender at all.
We tried calling customer service a number of times with no return calls. You may want to try the email form on its website if you’re not able to get ahold of customer service by phone.
CatchFire Funding has a fairly in-depth online application. To begin the process, follow these steps:
Sign the plan administration section and click Finish.
If you fill out the application and submit it online, you’ll be contacted by a CatchFire Funding agent to go over your application and arrange for payment of your setup and plan administration fees. If you’d rather talk to someone before filling out the application, you’ll be asked to choose a date and time to be contacted.
According to the website, it takes about three to four weeks to complete your self-directed 401(k) rollover and get financing for your business.
A ROBS plan or self-directed 401(k) financing isn’t a loan, so there aren’t any repayments. Instead, you’re using funds from your retirement account to finance your business.
Compare CatchFire Funding to other finance options with our guide to business loans.
CatchFire Funding 401(k) business financing plans is not currently available on Finder
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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.
If you have at least $50,000 in a qualifying retirement account, you may be eligible for a self-directed 401(k) plan with CatchFire Funding. As a Rollover For Business Startup (ROBS) plan, it can be a helpful debt-free alternative to a business loan. It also comes with a few features that you won’t find with every ROBS provider — including a discount for veterans, a funding guarantee and a protection guarantee if you’re audited by the government.
But, much like similar services, it charges a one-time setup fee of $4,995 and either an annual fee of $1,164, or payments of $119 per month, which can add to your cost of doing business. Still, these costs are comparable to several of its competitors.
Not sure self-directed 401(k) financing from CatchFire Funding is for you? Check out these business loans from other reputable providers.