Debt-Free Home EquityTM Joins Growing Assembly of Debt-Free Financing Solutions for Small Businesses
Bellevue, Wash. (August 14, 2008) - Thanks in no small part to the challenge of securing credit in today's economic climate, would-be business owners can turn to a new, debt-free option for accessing necessary capital: Debt-Free Home EquityTM.
Also known as real estate home equity exchange, this latest addition to a growing list of nontraditional financing vehicles enables home owners to tap their home equity for cash without interest costs or monthly payments.
Guidant Financial Group, which specializes in alternative and debt-free financing for small businesses, added the funding option this month to its offering of financial services.
According to Guidant CEO David Nilssen, a strategic company affiliation is enabling Guidant to help clients obtain this no-debt financing. "Debt-Free Home Equity offers homeowners a unique way to access the equity they've already built up in their home without paying someone else for the privilege of using it," he says. "This isn't a second mortgage, or a reverse mortgage, a home equity line of credit, or any debt whatsoever."
Nilssen explains that, in exchange for an upfront cash payment based on a percentage of the current value of their home, Debt-Free Home Equity participants agree to share with the program sponsors the same percentage of proceeds from, and at the time of, the sale of their home. Because Debt-Free Home Equity is structured as an option, should the participant's home decrease in value, the program sponsors will also share in that loss; there is no penalty or special payment to the sponsors should the option prove unprofitable. Qualified homeowners can receive up to 13% of their home's value in an advance payment.
Those who receive this liquid equity can use it for any purpose. "This is an ideal way for people to purchase a business or franchise, secure operating capital, pay off debts or even make a significant IRA contribution," says Nilssen. "Ultimately, how they spend the cash is completely up to them."
Using the cash to finance a business, however, has its added advantages. Like Guidant's other debt-free financing solution, 401(k) small business financing, Debt-Free Home Equity gives entrepreneurs a head-start on their way to success.
Because participants are able to access cash from the equity of their home without any interest or monthly payments, says Nilssen, new business owners can focus on using the profits from their business venture to invest in the growth of the company, not to pay down debt.
"Going into business with any amount of debt can handicap your potential for success," says Nilssen. "It's common business sense: The more you reduce your overhead, the more you increase your profit potential. For this reason we are thrilled to add Debt-Free Home Equity as another debt-free financing option for our clients."
About Guidant Financial Group
Guidant Financial Group provides investors with safe and innovative options to invest for their retirement futures. Guidant is the premier provider of self-directed IRAs and business funding solutions through an individual's IRAs and 401(k)s. Guidant's services allow investors the freedom to make alternative investments in real estate, franchises, businesses, tax liens and more. For more information on self-directed IRAs or small business financing please visit www.guidantfinancial.com.
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