Guidant Financial Review

What are Guidant Loans?

Founded in 2003 by David Nilssen and Jeremy Ames with a humble investment of $10,000 and a laptop, Guidant Financial has emerged as an industry leader in small business funding. Guidant Financial stands out for its expertise in structuring 401(k) business financing, also known as Rollovers for Business Start-ups (ROBS), facilitating more ROBS arrangements annually than any other provider while maintaining a spotless track record with the Internal Revenue Service (IRS).

The compamy enable people from all walks of life to purchase alternative investments (i.e., real estate, small businesses, mortgages, tax liens, etc.) inside their retirement plans as an investment, without taking a taxable distribution. Unlike conventional bank loans that often demand collateral or impeccable credit scores, Guidant Financial loans prioritize accessibility and simplicity.

Key Features

1. Comprehensive Suite of Financing Solutions. The company offers a diverse range of financing options tailored to meet the needs of small businesses and entrepreneurs, including Small Business Administration (SBA) loans, unsecured loans, portfolio loans, and franchise financing.

2. Specialization in 401(k) Business Financing. As industry leaders in 401(k) business financing, Guidant Financial specializes in structuring Rollovers for Business Start-ups (ROBS), facilitating more ROBS arrangements annually than any other provider while maintaining a spotless track record with the Internal Revenue Service (IRS).

3. Industry-Leading Compliance. Guidant Financial adheres to the highest standards of compliance, ensuring that all financing arrangements comply with regulatory requirements and IRS guidelines. This commitment to compliance provides peace of mind for entrepreneurs and protects their investments.

4. Flexible Financing Options. Whether entrepreneurs need funding to start a new business, purchase a franchise, or expand an existing venture, Guidant Financial offers flexible financing options to suit their specific needs and goals.

Pros and Cons

Pros

Cons

Reliability

With over two decades of experience, Guidant Financial boasts a track record of assisting thousands of small businesses in accessing capital for various purposes, from startup funding to franchise acquisitions. The company's credentials include being recognized as an industry leader by publications such as The Wall Street Journal and Entrepreneur.

Guidant Financial is recognized as a BBB accredited business, boasting an A+ rating, which reflects its commitment to maintaining high standards of business practices. The A+ rating signifies a positive track record in addressing customer concerns and adhering to ethical business conduct.

How to Apply for a Guidant Loan?

1. Pre-Qualification. Before applying for a loan, entrepreneurs can pre-qualify online through Guidant Financial's website. This process typically involves providing basic information about the business and the financing needs.

2. Consultation. After pre-qualifying, entrepreneurs will have the opportunity to schedule a consultation with a financing expert from Guidant Financial. During this consultation, the expert will discuss the various financing options available and help determine the best fit for the entrepreneur's needs and goals.

3. Application Submission. Once the appropriate financing option has been identified, entrepreneurs can proceed with the loan application process. This may involve completing an online application form and providing additional documentation, such as financial statements, business plans, and personal identification documents.

4. Review and Approval. Guidant Financial will review the loan application and supporting documentation to assess the entrepreneur's eligibility and creditworthiness. The review process may include verifying financial information and conducting due diligence on the business.

5. Funding. Upon approval, Guidant Financial will work to expedite the funding process, ensuring that entrepreneurs receive the capital they need in a timely manner. Funding may be provided through various channels, depending on the chosen financing option, such as direct deposit or wire transfer.

Conditions and Requirements

Conditions

1. Flexible Down Payment. Depending on the financing option, Guidant Financial offers flexibility in down payment requirements. For example, SBA loans can be combined with other forms of financing, reducing out-of-pocket costs for borrowers.

2. Low Interest Rates. Guidant Financial aims to provide competitive interest rates, especially for SBA loans and portfolio loans. Interest rates for portfolio loans can be as low as 3% - 4%, offering borrowers favorable terms for leveraging their investment portfolios.

3. Rapid Funding. Guidant Financial is committed to providing timely access to capital for small businesses. The funding process is designed to be efficient, with loans often closing in a matter of weeks, allowing borrowers to seize opportunities and address immediate business needs.

4. Expert Support. Borrowers benefit from personalized support throughout the financing process. Guidant Financial's team of experts, including dedicated Account Managers and in-house attorneys, provides guidance, compliance reviews, and audit protection to ensure a smooth and secure experience.

Requirements

1. Business Viability. Borrowers should have a viable business plan, demonstrating the potential for success and growth. This includes a clear outline of the business model, target market, and financial projections.

2. Creditworthiness. While Guidant Financial prioritizes easy qualification, borrowers may still need to meet certain creditworthiness standards. A credit score of 690 or higher is generally required for unsecured loans, and SBA loans may have specific credit score requirements.

3. Compliance with Regulatory Standards. For options like 401(k) business financing (ROBS), borrowers must adhere to regulatory standards set by the Internal Revenue Service (IRS) and other relevant authorities. Compliance with these standards is crucial for the successful implementation of ROBS.

4. Minimum Funding Requirements. Certain financing options, like portfolio loans, may have minimum funding requirements. For example, a minimum account balance of $85,000 may be necessary to qualify for a portfolio loan.

Ways to Receive the Money

1. Direct Deposit. One of the most common methods for receiving funds is through direct deposit. Once the loan application is approved and finalized, the funds can be electronically transferred directly into the borrower's designated bank account. This method offers quick access to the funds, typically within a few business days after approval.

2. Wire Transfer. For borrowers who prefer an expedited transfer of funds, Guidant Financial may offer the option of a wire transfer. Wire transfers provide same-day access to funds and are ideal for urgent financial needs or time-sensitive business expenses. Borrowers may need to provide specific bank account details to facilitate the wire transfer.

3. ACH Transfer. Automated Clearing House (ACH) transfers provide another electronic payment option for borrowers. Similar to direct deposit, ACH transfers allow for the seamless transfer of funds between financial institutions. This method offers convenience and efficiency, with funds typically deposited into the borrower's bank account within a few business days.

Products

1. 401(k) Business Financing (ROBS) (up to 100% of the borrower's eligible retirement account balance, with a minimum of $50,000). This financing option allows entrepreneurs to use their existing retirement funds, such as a 401(k) or IRA, to fund a new or existing business without incurring early withdrawal penalties or taxes. Guidant Financial specializes in structuring Rollovers for Business Start-ups (ROBS) transactions, providing entrepreneurs with a tax-efficient and flexible funding solution.

2. SBA Small Business Loans (from $150,000 to $5 million). Guidant Financial assists entrepreneurs in accessing funding through various Small Business Administration (SBA) loan programs, including SBA 7(a) loans, SBA 504 loans, and SBA Express loans. These loans offer favorable terms and low-interest rates, making them an attractive option for small business financing.

3. Unsecured Loans (from $25,000 to $150,000). Unsecured loans provided by Guidant Financial offer quick access to capital without requiring collateral. These loans are ideal for entrepreneurs who may not have assets to pledge as security but still need funding to start, grow, or expand their businesses.

4. Portfolio Loans (up to 80% of the borrower's eligible investment portfolio balance, with a minimum funding requirement of $85,000). Portfolio loans leverage the borrower's investment portfolio, such as stocks, bonds, or mutual funds, to secure financing for their small business. This option allows borrowers to access capital without liquidating their investments, maintaining the potential for portfolio growth while obtaining needed funds.

5. Franchise Financing. Guidant Financial provides financing solutions tailored specifically for franchise owners, helping them secure funding to start, purchase, or expand their franchise businesses. Whether it's a new franchise or an established brand, Guidant Financial offers flexible financing options to support franchise entrepreneurs.

Other Loans

• Best Business Loans

Reasons for Getting Rejected for a Guidant Loan

1. Inadequate Documentation. Submitting incomplete or inaccurate documentation can lead to a rejection of the loan application. Guidant Financial requires borrowers to provide various documents, such as financial statements, business plans, and personal identification, to support their loan application. Failure to provide these documents or provide them in a timely manner can result in rejection.

2. Unsuitable Business Model. Guidant Financial evaluates the viability and sustainability of the business model presented by the applicant. If the business plan lacks clarity, feasibility, or market potential, it may raise concerns about the borrower's ability to repay the loan, leading to rejection.

3. Ineligible Business Type. Certain industries or business types may be deemed ineligible for financing by Guidant Financial due to regulatory restrictions, high-risk factors, or other considerations. For example, businesses involved in speculative or illegal activities may not qualify for financing.

4. Previous Loan Default. Applicants with a history of defaulting on previous loans or obligations may face rejection for a Guidant loan. Lenders consider past repayment behavior as an indicator of future creditworthiness, and a history of defaults may signal a higher risk of non-payment.

5. Regulatory Compliance Issues. For certain loan products, such as 401(k) business financing (ROBS), compliance with regulatory requirements, including IRS guidelines, is essential. Failure to meet these requirements or adhere to regulatory standards may result in rejection of the loan application.

How to Repay a Guidant Loan?

1. Understand the Loan Terms. The first step in repaying a Guidant loan is to thoroughly understand the terms of the loan agreement. This includes the repayment schedule, interest rate, any fees or penalties associated with late payments, and the total amount owed over the life of the loan.

2. Set Up Automatic Payments. Many lenders, including Guidant Financial, offer the option to set up automatic payments for loan repayments. This allows borrowers to schedule regular payments to be automatically deducted from their bank account, reducing the risk of missed or late payments.

3. Monitor Account Balances. Borrowers should monitor their bank account balances regularly to ensure they have sufficient funds available to cover scheduled loan payments. Overdrafts or insufficient funds can lead to failed payments and may incur additional fees.

4. Communicate with the Lender. If borrowers encounter financial difficulties or anticipate challenges in making timely payments, it's crucial to communicate with the lender proactively. Guidant Financial may offer options such as loan restructuring, deferment, or modification to accommodate the borrower's circumstances.

5. Consider Early Repayment. Some borrowers may choose to repay their Guidant loan early to save on interest costs and reduce the overall debt burden. Before doing so, borrowers should check the loan agreement for any prepayment penalties or fees.

Alternatives

Benetrends, established in 1983, stands out as a pioneer in the ROBS sector, having facilitated over 17,000 transactions. With its wealth of experience, Benetrends is recognized as the top choice for the best overall ROBS provider. The company's application process begins with a complimentary consultation, ensuring clients have all the necessary information before proceeding. Under Benetrends' Rainmaker Plan, the rollover process takes place swiftly, with funds typically available in as little as 10 business days. With features like Audit Shield protection and a flawless track record, Benetrends instills confidence in its clients, making it a trusted choice for ROBS solutions.

Pango Financial earns recognition for offering a comprehensive funding package at a lower cost compared to its competitors, making it the best value for the price. Combining full-service ROBS implementation with digital technology, Pango Financial provides entrepreneurs with exceptional value for their money. Pango's engagement with clients extends throughout the plan implementation process, including assistance with incorporation. Funding typically occurs within four weeks, depending on the state of incorporation. Post-transaction, clients benefit from in-house expertise and 24/7 online access to plan maintenance. .

Business Funding Trust specializes in helping individuals fund their businesses using retirement account funds, offering a simplified approach to ROBS setup. Since its inception in 2003, Business Funding Trust has assisted individuals in establishing their ROBS with minimal ongoing support needs. The company's base plan includes support materials for clients to manage their plans independently, making it ideal for sole operators. Although the setup fee is relatively high at $4,950, clients benefit from the absence of ongoing monthly fees, resulting in long-term savings.

FranFund, founded by former franchise owners, specializes in assisting aspiring franchisees in securing financing, making it the top choice for purchasing a franchise. With a proven track record of working with franchisees, FranFund offers a comprehensive application process that begins with a complimentary consultation. The company's SafetyNet Program allows applicants to initiate the funding process at no cost, providing a head start on their ROBS setup. FranFund's dedicated in-house TPA ensures ongoing plan compliance with IRS and DOL regulations, providing clients with peace of mind.

Loans like Guidant Financial

OnDeck

OnDeck stands out as an excellent choice for short-term business loans, offering the flexibility of borrowing substantial amounts, even for businesses with a minimum credit score. What makes OnDeck particularly attractive is its ability to provide funds swiftly, with same-day approval and disbursement for qualifying applicants. Moreover, OnDeck emphasizes the opportunity to build and strengthen business credit by consistently making on-time payments. The loan terms range from 18 to 24 months, with loan amounts spanning from $5,000 to $250,000. While the starting interest rate is 35.40% for a portion of customers, the accessibility and speed of funding make OnDeck a notable player in the short-term business loan landscape.

Funding Circle

Funding Circle distinguishes itself in the realm of long-term business loans by offering competitive rates, extended repayment terms, and a lack of prepayment penalties. This lending option caters to businesses seeking larger loan amounts, ranging from $25,000 to $500,000, with a reasonable starting interest rate of 11.29%. Beyond financial support, Funding Circle prioritizes efficiency, enabling businesses to access funds in as little as two business days. Notably, Funding Circle also showcases its commitment to diversity by providing funding options specifically tailored for women-owned businesses and minority entrepreneurs. The loan terms extend from 6 to 84 months, making Funding Circle a favorable choice for businesses with a more extended financial horizon.

Credibly

Credibly positions itself as a reliable source for working capital loans, particularly for businesses requiring quick funding to address immediate operational needs like payroll or inventory expenses. Notably, Credibly's working capital loans boast a rapid approval process, often providing funds in less than 24 hours. The lender exhibits flexibility by considering applicants with a minimum credit score of 500 and a willingness to look beyond a less-than-perfect credit history, provided there is a healthy annual revenue. Beyond working capital loans, Credibly collaborates with a network of lenders to offer a diverse range of financing options, including merchant cash advances, business lines of credit, equipment financing, SBA loans, and invoice factoring.

Fundbox

For startups in need of swift financing, Fundbox presents an appealing option with its business line of credit, offering up to $150,000. What sets Fundbox apart is its relatively lenient eligibility criteria, allowing new companies to qualify after just six months of operation and a minimum annual revenue of $100,000. The business line of credit provides the flexibility to withdraw funds as needed, and businesses only pay interest on the amount utilized. Additionally, Fundbox offers perks such as up to 20% off fees through its Fundbox Plus upgrade. With competitive starting interest rates ranging from 4.66% for 3-month terms to 8.99% for 6-month terms, Fundbox addresses the financial needs of emerging businesses seeking quick and accessible startup loans.

Editorial Opinion

Important

How to Choose a Lender

1. Make sure to confirm whether the lender is licensed to operate in your state. You can verify this information with your state regulator or attorney general.

2. Check if the lender is a member of a reputable association, such as the Community Financial Services Association of America. Membership in such organizations may provide an extra level of reliability.

3. Carefully review all the terms and conditions of your payday loan contract.

4. Thoroughly examine the interest rates on payday loans and ensure that your contract includes a detailed breakdown of the total cost of the loan.

5. Take advantage of your right of rescission. Usually, you can rescind the loan within three days after signing the agreement. Alternatively, there is typically a "cooling-off" period, which allows you several days to thoroughly review the contract before making an informed decision to enter into a consumer loan agreement based on the terms specified by the lender.

6. Choosing a payday lender is a significant decision that demands careful consideration and a good understanding of how such organizations operate.

Methodology

At Finanso, we've carried out a comprehensive analysis of over 50 business lenders, assessing them based on 35 different parameters across six key categories: accessibility of loans, customer relations, quality of service, interest rates, and transparency of conditions.

In each category, we carefully considered the most critical factors in selecting a lender. These factors include the interest rates, available loan amounts, minimum credit score, minimum income, application fees, and the speed at which funds are transferred.

At Finanso, we highly value our users, which is why we also focus on the quality of customer service, user reviews, and additional features that can aid our users in making a well-informed decision.

Our ultimate goal is to provide insightful recommendations and expert advice to assist you in selecting a lender that best caters to your specific needs.

Additional Resources

• GoKapital Account Review
• How to Apply for GoKapital Loan
• How to PayOff GoKapital Loan
• GoKapital Mobile Apps
• GoKapital Reviews

Sources

• Guidant Financial Group
• Guidant Financial Group Inc Retirement Planning Services
• Best ROBS Providers