Charley Pangus
$
50K
401K Business
Financing
Tax free alternative.
Allows you to use your 401(k) funds to finance your business without incurring hefty taxes.
loan amount
up to
financing speed
1
week
minimum
interest rate
NONE
you're paying yourself interest
builds credit
NO
must be employed
YES
good for funding side gigs
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401(k) Business Financing
These are loans that are taken out based on the amount you have in your 401(k). Usually you can only borrow a maximum of 50% of the value of your 401(k), or $50,000, whichever is less. These types of loans charge interest, however, since you’re borrowing from your retirement plan, you’re actually paying the principal and interest back to yourself. The important thing about 401(k) financing is that you have to keep your job so that you can have continued control and access over your 401(k). For this reason, it isn’t recommended that entrepreneurs use this loan unless they intend to start a side-gig.
Will a 401(k) loan appear on my credit report?
No, they are not reported to the credit bureaus.
What happens if I default on my loan?
Usually, it’s very hard to default on one of these loans because they’re almost always deducted directly from your paycheck. However, if you do, you will be taxed on the outstanding balance as income, including an early withdrawal penalty if you are not at least age 59 ½.
Features:
Amount: Min. $10,000 to max. 50% of the value of your 401(k) or $50,000, whichever is smaller
Interest Rates: 0%
Loan Terms: Varies
Get Pre-approved Today
Apply Now
Pros
Doesn’t require a credit check
Won’t be listed on your credit report if you default
A better option than withdrawing from your 401(k) directly if you’re under 59½ years old.
Cons
You may not be able to access one depending on how your 401(k) is set up by your employer
Not paying interest to anyone else
Tax-free way of accessing retirement plan funds
Old 401(k)s aren’t eligible for loans
Doesn’t build business credit
Could be a small loan amount, maximum loan amount is $50,000
“Tim and Kevin are an amazing duo who are super responsive and pushed to help us get the funding we needed fast. Great team great service"
“Tim and Kevin are an amazing duo who are super responsive and pushed to help us get the funding we needed fast. Great team great service"
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