401k / Securities Financing

401k / Securities Financing

Qualifying Factor

Not Recommended

Terms: 5.35% (prime +2) 5 years


401k & Securities financing are both great options to get the financing your business needs.  This type of financing requires that the business owner has a 401k, stock or securities.

This type of financing isn’t a loan against, using the 401k, stock or securities as collateral, but simply a movement or change of custodian.

401k Option:

Part 1: Rolling over a non-contributing and qualifying account.  Allows for cash out of half, or $50,000. Whichever is lower.

Part 2: (if applicable) Structure a self=directing IRA for the remaining funds

Securities Option:

Requires a movement of stock portfolio to a new custodian. This in turn, will structure a very low-interest rate line of credit not to exceed 90% of the portfolio balance.  ($300,000 minimum)



  • Business owner has 401k, Stock or Securities
  • Can offer the lastest FULL statement
  • No specific personal credit score required



  • Prime + 2%
  • $1995 lender fee (for 401k option)



Fred had worked for his company for 20 years.  When he left to pursue his passion for starting a new business, he had a 401k.   Once reviewing all of his financing options, he found that financing based on his 401k was his least expensive option.