Funding Your Business with Nontraditional Options
By Mike Minitelli, Chief Development Officer at Benetrends
Are you sitting on a brilliant business idea, but think you need years of saving to make it happen? That’s what many aspiring entrepreneurs believe, but I’m here to tell you there’s a better way—actually, several better ways.
After helping thousands of business owners secure funding at Benetrends, I’ve seen firsthand how unconventional funding methods can turn dreams into reality much faster than traditional routes. Let me share some insider knowledge about the hidden pathways to fund your business that you might not have considered.
Beyond the Bank Loan: Creative Funding Solutions
When most people think about funding a business, they immediately picture a traditional bank loan with its rigorous approval process and potentially high interest rates. While this works for some, it’s just one option in a diverse landscape of funding possibilities.
Tapping Into Retirement Funds without the Penalties
Did you know you can use your existing retirement funds to finance your business without incurring early withdrawal penalties? It’s true, and it’s one of the best-kept secrets in business financing.
The Rollover for Business Start-ups (ROBS) program allows you to invest your 401(k), IRA, or other eligible retirement accounts into your business without triggering taxes or penalties. This isn’t a loan—it’s your money working for you in a new way.
At Benetrends, we pioneered this approach over 40 years ago. Our ROBS program gives you:
- Access to your funds in as little as 10 business days
- No debt or interest payments to worry about
- Complete control over how you use the money
- The ability to pay yourself a reasonable salary from day one
Many of our clients are surprised to learn they’ve been sitting on the perfect funding source all along. We regularly see entrepreneurs who can launch their businesses immediately, rather than waiting years to save up additional capital. What could have taken five more years of saving becomes a reality within weeks when utilizing retirement funds strategically.
Specialized Industry Financing: The Fleet Program
For entrepreneurs entering industries that require significant equipment investments—like transportation, construction, or landscaping—our Fleet Financing program offers tailored solutions that traditional lenders often can’t match. This specialized funding approach provides up to a 100% financing solution for new equipment, with flexible payment options that align perfectly with your business’s cash flow patterns and competitive rates that protect your bottom line.
The Fleet Financing program also features an expedited approval process that keeps your business moving forward without unnecessary delays. While traditional lenders might make you wait weeks for equipment financing decisions, our streamlined approach helps you acquire the assets you need exactly when you need them.
The Rising Trend of Friend and Family Funding
Younger entrepreneurs are increasingly turning to their personal networks for initial funding. According to Fundable, about 38% of startup funding comes from friends and family—a significant increase from previous generations.
Why this shift? Millennials and Gen Z entrepreneurs typically value relationship-based business partnerships that go beyond simple financial transactions. They recognize that friends and family who invest in their vision often bring valuable insights and connections along with their financial support, creating a more holistic partnership that benefits everyone involved.
These younger entrepreneurs also appreciate the inherent flexibility that comes with personal funding arrangements. Unlike institutional lenders with rigid repayment schedules, friends and family investors can often provide more adaptable terms that align with the natural growth patterns of a new business. Additionally, there’s an emotional component that shouldn’t be overlooked—having loved ones financially invested in your success creates a support network that extends beyond capital, providing much-needed encouragement during the inevitable challenges of launching a business.
If you’re considering this route, I always recommend formalizing the arrangement with proper documentation. Even with family, treating funding professionally protects both parties and preserves relationships. This means creating clear written agreements about repayment terms, equity stakes if applicable, and communication expectations. I’ve seen too many entrepreneurs damage important personal relationships by keeping these arrangements casual, only to face complications when business realities don’t match initial expectations.
SBA Loans: Not Just Your Parents’ Funding Option
The Small Business Administration (SBA) has worked hard to shed its reputation for excessive paperwork and slow approvals. Today’s SBA programs are more accessible than ever, especially for younger entrepreneurs with strong business plans but limited collateral.
Some advantages of modern SBA loans include:
- Lower down payments than traditional loans
- Extended repayment terms that improve cash flow
- Competitive interest rates
- Special programs for veterans, minorities, and women
At Benetrends, we’ve helped countless clients navigate the SBA loan process successfully, often securing funding for entrepreneurs who had been turned down by traditional banks.
Finding the Right Mix: Hybrid Funding Approaches
The most successful business launches I’ve seen often utilize multiple funding sources strategically. For example, using ROBS to cover your down payment requirements can help you qualify for an SBA loan with more favorable terms. This combination approach maximizes your available capital while minimizing risk.
How to Determine Which Funding Option is Right for You
The best funding solution depends on several factors unique to your situation:
- Your timeline for launching
- The amount of capital needed
- Your personal financial situation
- Your industry’s specific requirements
- Your comfort level with debt
At Benetrends, we begin every client relationship with a comprehensive funding assessment. This helps us understand your specific goals and constraints before recommending a path forward.
Fund Your Business with Benetrends
Funding shouldn’t stand between you and your business dreams. With more options available than ever before, the real challenge isn’t finding money—it’s finding the right money with terms that support your long-term success.
Whether you’re looking to open a franchise, start a service business, or launch the next groundbreaking tech company, there’s a funding solution tailored to your needs. The entrepreneurs who succeed fastest are often those who think creatively about financing from the beginning.
Ready to discover which funding option is right for your business? Our team at Benetrends has helped thousands of entrepreneurs secure billions in funding. Fill out our form here to start a conversation. We’d love to show you how the right funding approach can accelerate your business journey.