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Product Name | FranFund 401(k) business financing plans |
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APR | N/A |
Requirements | $50,000+ in a rollable, pretax retirement account; structured as a C corporation that’s operational; owner of the retirement funds is an active employee |
To qualify for 401(k) financing with FranFund, you need to meet requirements that are typical of any ROBS plan.
What sets FranFund apart from the crowd is its SafetyNet Program, which moves your money to a new IRA earlier in the process — for free. While typical ROBS plans take 10 to 20 days to rollover your funds, FranFund can finish the process in just 10 days.
You're assigned a dedicated associate who works with you to make sure the administration of your plan goes smoothly and meets the guidelines of the IRS and Department of Labor (DOL) in case of an audit.
It also helps you set up your company’s organizational documents, establish a C corporation, open your new retirement plan and more. And it offers special pricing for veterans.
While you can't directly apply for the FranFund 401(k) financing program through its website, you can schedule a consultation by filling out its Funding assessment form. Follow these steps to get started:
While you won't need to provide verification documents to request a consultation, you should have the following on hand so that you can give FranFund accurate information to work off of:
If you’re not sure a ROBS is for you, compare more options with our guide to business loans.
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.
FranFund offers a Rollovers for Business Startups (ROBS) plan that lets you use qualifying retirement funds to start your business with no debt. It offers a discount on its setup fee for veterans — but even if you don’t qualify, its cost is comparable to similar services.
Its SafetyNet program, which allows you to rollover your funds in as little as 10 days, and its SBA loan tie-in option set FranFund apart from the crowd. Still, if you want the lowest possible rates for setup and maintenance or extended guarantees, FranFund may not be the best fit for your business.
Not sure it’s right for you? Explore other business loan options before you apply.