Buy custom What is the risk involved in this financing situation?
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| Topic: |
Business
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| Number of pages / Number of words: |
4 / 843 |
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These loans are usually described as un-bankable deals and generally do not exceed $25,000.
Liquidate retirement funds.
If you can pay the immediate income tax on funds withdrawn, and afford the 10 percent penalty for those under 59 1/2, you can cash out an IRA, or take money out of a Keogh account...
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While this is a heavy price, there are no loan forms to fill out. Most other bootstrap techniques should be considered prior to using this method.
Borrow from a retirement plan.
If you have not quit your job, you can sometimes borrow from a 401(K) plan. If a working spouse has a plan try borrowing from it...
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General points of the essay
What is the risk involved in this financing situation?
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