Guidant Financial Group Blog

In the February issue of Entrepreneur Magazine, you will find a nice little expose on Guidant Financial Group (see What to Do When the Bank Pulls Your Line of Credit).

And by expose, we mean, paragraph. Well, two paragraphs, but who’s counting? Besides us, we mean.

Although short, the couple paragraphs dedicated to Guidant pack quite a bit of punch. The article, as you can tell from its title, focuses on the options a small business owner has should the bank pull their credit line. One of the unique things about the Guidant option that is hinted at, but not touched on by the article, is that investing your retirement funds into your business can not only help your business, but it could help your personal financial future.

As our Cofounder, David Nilssen, points out, the Guidant 401(k) Small Business Financing program is not to be used as a last-ditch effort to save a failing business. That being said, should the bank pull a credit line from a well-performing enterprise, investing one’s retirement funds can not only be a good move from the business’ perspective, but it could also be a prudent investment. Just think, as your business grows, so does your retirement account!

Many of the other options the reporter lists involve borrowing against other assets – or even assets that they don’t yet have (such as payables). The idea of opening up another credit line after one bank has just closed one down cannot be very appealing to many people.

We are honored to be a part of Entrepreneur’s list of solutions for small business owners who face this all-to-realistic dilemma. And, especially for owners of otherwise prospering businesses, we believe that investing your retirement future into the future of your own business is a pretty darn good alternative!