Funding with Finesse: Tenet Financial Group

Share Button

Diane Rosenkrantz photo 2014b

Today, no different from years ago, it is believed that the number one reason new businesses fail in the first couple of years is due to lack of sufficient funding. Knowing that, Tenet Financial Group can assist small business owners throughout the United States in being better prepared for how to avoid any obstacles and ensuring they are beginning their new venture at the right time and sufficiently capitalized.

Offering a variety of funding options, Tenet Financial Group consultants work with clients to review funding options and assist them in understanding today’s credit markets. As a full service third party administrator, Tenet Financial Group is focused on helping their clients find the funding they need to purchase their new business or to recapitalize their existing business. Typically introduced to clients through franchisors, coaches or brokers, Tenet Financial Group operates in a boutique style manner in that it is extremely client centered and offers attention to detail. “Our team takes the time to ensure the clients know and understand their options,” Diane Rosenkrantz, Senior Consultant at Tenet Financial Group says. “This begins with the first conversation and continues throughout the Design, Installation, and Administration process.”

Founded in 2008 by Qualified Plan Designer, Derrick Skogsberg, Tenet Financial Group was born from a dozen years of experience in the financial and franchise industries. Recognizing a need for a true customer focused, consultative approach, he launched the independent funding business to fulfill that market need. Today, with a very experienced team, the independent nature of the business has allowed Tenet Financial Group to preserve and grow its specialty and niche.

“Tenet’s specialty is assisting clients throughout the country that are interested in learning about the Rollover funding option,” Rosenkrantz says. Using retirement funds such as 401K, IRA, pensions, 403b, 457, or annuities, Tenet Financial Group clients can use their retirement funds to buy a business, pay for any business expense, and to pay themselves a salary without incurring personal taxes or penalties for doing so. “Clients can pay themselves a salary as soon in the process as they wish, even before they reach profitability,” she adds. Although there is no IRS minimum or maximum with regard to the amount of retirement funds a client can use for their business, typically these funds are a beneficial option for individuals with $35,000 or more in retirement funds. Since this funding option is not a loan, these funds are actually used to buy stock in a client’s business, and therefore are not a personal distribution or a withdrawal.

The process begins with a conversation between the client and a Tenet Financial Group Senior Consultant. During this dialogue the pair will cover topics such as what the client’s needs are, their timetable, and where they are in the exploration process. The next step involves verifying that the client is able to access the funds in a timely manner. For example, if an individual wishes to utilize their 401k dollars the funds typically must be from a prior employer. Additionally, “Clients with traditional or standard IRA’s can rollover those funds, but Roth or Inherited IRA’s cannot be rolled over,” Rosenkrantz notes. Through asking these direct questions about the funds the client has access to, Tenet can begin with the key steps in the process. First, they’ll set up a new corporation.  Second, they will obtain the Federal tax numbers and finally, they will design and install the new 401K Profit Sharing Plan. Tenet Financial Group ensures that clients work with the same Senior Consultant from the first phone call until the entire funding process is complete. As most clients are not familiar with the design and installation process, it’s important that they not be handed off to an “account specialist” who may not be familiar with their individual needs. Another benefit to working with Tenet Financial Group is that all of Tenet’s Administration Work is completed in house; “Tenet Financial Group does not outsource any of our Administration Services,” Rosenkrantz says.

Periodically, clients will need additional funding beyond their 401K or IRA’s. Tenet Financial Group will review how unsecured funding or SBA loans can also be used in combination with retirement plan dollars. For projects with higher costs, “Clients can, in fact, use the rollover funds to satisfy the cash injection requirements for a conventional or SBA loan,” Rosenkrantz explains. Today, many clients wishing to be overcapitalized will be interested in obtaining additional unsecured lines of credit. To qualify for this funding option, clients must have: a credit score of 680+, a good credit history with no liens or bankruptcies, no or very few late payments, and reasonable credit use (i.e. low debt).

Tenet Financial Group is rated A+ by the Better Business Bureau and was awarded Funding Vendor of the Year by Franchise Brokers Association (FBA) for the past two years. Tenet’s grassroots marketing is demonstrated in their attendance at the International Franchise Expo Conventions, which they attend annually to meet and greet with existing and potential clients and franchisors. Additionally, Tenet co-sponsors the exhibitors gathering at each of the tri-annual conferences. With clients in almost every state of the country, the Tenet Financial Group difference is able to spend the necessary time with every client referred to the company. At the end of the day, Tenet Financial Group’s clients rest easy in knowing that capitalizing their new business is not a task that they must complete on their own.

-Jessica Spoto

For more information:
Website: www.tenetfinancialgroup.com/