Guidant specializes in helping business owners use their retirement accounts to fund business startup costs. Find out if it's right for you.
WRITTEN & RESEARCHED BY
Lead Staff Writer
Last updated onUpdated
REVIEWED BY
Lead Staff Writer
| Total Rating | 4.0 |
|---|---|
| Rates & Fees4.8 | |
| Services4.3 | |
| Eligibility Requirements4.5 | |
| Application3.0 | |
| Sales & Advertising Transparency3.8 | |
| Customer Service3.3 | |
| User Reviews3.0 | |
Table of Contents
Guidant Financial is a lending company that specializes in Rollovers as Business Startups (ROBS), which allows funds from 401(k)s and other retirement accounts to be used for startup business costs without incurring tax penalties. The company also offers SBA loans, lines of credit, and equipment financing.
Guidant’s wide range of products makes it suitable for many types of small businesses, from new entrepreneurs starting a business in retirement to franchisees to established businesses looking for a low-interest SBA loan. You can borrow as little as $25K or as much as $5 million. Or, if you choose the ROBS option, you won’t have to borrow any money at all—you can just use the funds from your retirement account.
Guidant’s transparency and solid rates make it quite competitive, but it suffers from some complaints regarding the responsiveness and knowledgeability of its customer service. Guidant also requires applicants to have good credit, which may put this lender’s products out of reach for some small businesses. Those who don’t make the cut may want to check out some alternatives for bad credit.
| Services4.3 |
|---|
| Lending Services 5.0 |
| Lending Limits 5.0 |
| Payment Portal & Mobile App 2.5 |
Guidant is perhaps best known for its ROBS plan, which restructures your retirement account to allow you to use those funds to start a business without facing the usual tax penalty for withdrawing your retirement funds early. However, you will have to pay Guidant a setup fee and a monthly maintenance fee.
Guidant Financial offers the following business financing products:
In addition to retirement account business financing, Guidant is a potential franchise financing source via its SBA Working Capital Loan, long-term SBA loans for large investments, and modest lines of credit for any type of business.
Guidant Financial gets positive points for the number of services offered, especially its unique 401(k) financing solutions. The only thing that dropped this company’s score to 4.3/5 for this section’s rating is the lack of mobile app offerings.
| Eligibility Requirements4.5 |
|---|
| Availability 5.0 |
| Borrower Qualifications 4.0 |
| Transparency 5.0 |
Guidant Financial has fairly competitive borrowing requirements and is refreshingly open about the qualifications for each type of funding. The one downside is that some of the credit score requirements on certain funding options require good to excellent credit scores, which can be a bit difficult for certain business owners to meet.
| Rates & Fees4.8 |
|---|
| Pricing 5.0 |
| Affordability 4.5 |
Guidant Financial’s terms and fees are both fairly straightforward and fair. Guidant offers clear terms, monthly repayments, and low-interest rates (compared to other alternative lenders). Guidant does provide interest rate ranges for most of its lending offerings.
Guidant does require setup fees for many of its loans, but the company is very upfront about these fees. Many of the setup fees also include extra perks like financial analysis, attorney council, and premium customer support.
These are the rates and fees for Guidant Financial’s unsecured loans, which function similarly to a line of credit:
| Borrowing Amount | $10,000-$150,000 |
| Term Length | Revolving |
| Interest Rate | Not disclosed |
| Origination Fee | Not disclosed |
| APR | Learn more |
| Collateral | None |
Guidant is known for its ROBS, but the lender also provides unsecured loans for businesses. Despite their name, these loans have revolving terms similar to a line of credit. That means you can draw on your credit as frequently as you want so long as the total amount you’ve borrowed does not exceed your credit limit. As you pay off your balance, you’ll free up additional credit that you can use again.
Payments on Guidant’s unsecured loans are made monthly. If you qualify for the introductory offer, you won’t have to pay interest for the first 12 months.
These are the rates and fees for Guidant Financial’s portfolio loans:
| Borrowing Amount | Up to 80% of your account balance Minimum $85,000 |
| Term Length | Revolving |
| Fixed-Rate | 3%-4% of the borrowing amount |
| Origination Fee | Not disclosed |
| APR | Learn more |
| Collateral | Your portfolio |
Portfolio loans allow you to leverage the value of your stocks and securities to obtain funding without actually selling them. Think of it as using your portfolio as collateral for a secured loan. Otherwise, Guidant’s portfolio loans work similarly to its unsecured loans, except you’ll be charged interest-only payments monthly. The interest rate, as well as the setup fee, are also lower than they are with the unsecured loans, but there’s no introductory rate.
Guidant offers two types of SBA loans. SBA loans are partially guaranteed by the Small Business Administration (SBA), which allows businesses to access better rates and terms than they would otherwise qualify for. The tradeoff is a more complex and longer application process. Guidant charges a one-time $2,500 setup fee for SBA loans.
| Borrowing Amount | $150,000-$5 million |
| Term Length | Up to 10 years |
| Fixed-Rate | See current SBA loan rates |
| Origination Fee | 3%-5% of loan amount + SBA Guaranty Fee (closing costs, including SBA Guaranty Fee); loans under $200K without ROBS funding may be subject to an additional fee |
| APR | Learn more |
| Collateral | Personal guarantee |
The SBA 7(a) program is the most popular and versatile of the SBA’s loan programs. SBA 7(a) loans can be used for everything from refinancing debt to purchasing land or equipment to expanding an existing business.
This SBA loan is otherwise similar to other installment loans. You’ll make monthly payments (principal + interest) until you’ve paid the loan off completely.
Guidant offers a variation on the 7(a) loan for customers seeking $150,000 or less. The credit requirements are a little higher (see above), and you’ll also need at least $25,000 in reserve cash. In exchange, this version lets you avoid collateral requirements, replacing them with first liens on your business assets. It also features a simplified, faster application.
| Borrowing Amount | $75,000-$150,000 |
| Term Length | 7-10 years |
| Fixed-Rate | See current SBA loan rates |
| Origination Fee | 1%-3% of loan amount + SBA Guaranty Fee (closing costs, including SBA Guaranty Fee); loans under $200K without ROBS funding may be subject to an additional fee |
| APR | Learn more |
| Collateral | Business assets |
SBA Working Capital Loans are smaller, expedited versions of more traditional SBA loans such as the 7(a). Keep in mind that we’re talking fast for an SBA loan — figure somewhere around 45 days.
Interestingly, Guidant allows these loans to work in conjunction with its ROBS product to cover the down payment of an SBA Working Capital Loan. The down payment is typically around 10% of the loan. Note that if you’re funding a franchise, you must pay the franchise fee before applying.
| Borrowing Amount | Up to 100% of the account balance Minimum $50,000 |
| Term Length | N/A |
| Setup Fee | $4,995 |
| Administration Fee | $149+ per month |
When you’re first starting as an entrepreneur, getting that initial funding with no business history can be an enormous hurdle. One alternative to a loan is to roll over funds from a retirement account (such as a 401(k)). Technically, you’re not borrowing money at all.
So why wouldn’t you just liquidate the account instead? A ROBS doesn’t qualify as cashing out your retirement account, so you won’t be hit with the penalties that come with liquidating a retirement account early. As a “rollover,” the funds aren’t taxable.
Guidant allows you to do a rollover of funds from the following types of retirement accounts:
Guidant charges a one-time $4,995 ROBS setup fee and a “recommended” $149+/month administration fee.
The following terms and fees pertain to Guidant Financial equipment leasing:
| Borrowing Amount | Up to $2 million |
| Interest Rates | 8.5%-20% |
| Collateral | None |
| Application3.0 |
|---|
| Application Process 5.0 |
| Application Timeline 1.0 |
You can see if you prequalify on Guidant’s website with a simplified form that promises results within a few minutes.
The actual funding process, however, has historically taken significantly longer. While we expect a long process with SBA loans, the long timeline for other funding options is less than ideal. Guidant Financial is not very transparent about application timelines or time to fund timelines once you’re approved, which is why this lender only gets 3/5 stars for this section rating.
| Sales & Advertising Transparency3.8 |
|---|
| Sales Practices 3.0 |
| Web Presence 5.0 |
Guidant provides most of the information you’ll need on its website. You’ll find information about rates, products, term lengths, and qualifications. Guidant gets positive points for being so forthcoming with sales transparency. The only thing keeping Guidant from a full 5/5 rating in this section is several customer complaints regarding sales practices, The most common was Guidant sales reps pushing ROBS financing on customers interested in other products.
| Customer Service3.3 |
|---|
| Personal Support 3.4 |
| Self-Service 3.0 |
| Guidant Financial Support | Availability |
|---|---|
| Phone Support | |
| Email Support | |
| Support Tickets | |
| Live Chat | |
| Dedicated Support Representative | |
| Knowledge Base or Help Center | |
| Videos & Tutorials | |
| Company Blog | |
| Social Media |
You can reach Guidant by phone or through the lender’s website (email). Guidant is reachable over the phone Monday through Friday from 7 AM-5 PM Pacific Time. There is no live chat option, but you will receive a dedicated Account Manager. Guidant also has useful support resources on its website, with an online learning center that includes guides, videos, financing calculators, and more.
Reviews of Guidant’s customer service are mixed. Some customers love the support they receive and others are less satisfied and report trouble getting in contact with Guidant, resulting in a 2.6/5 star rating for this section.
| User Reviews3.0 |
|---|
| User Feedback 3.0 |
| Review Site Aggregate 2.9 |
Guidant Financial currently has an A+ rating with the BBB and some positive reviews regarding its products, particularly its ROBS plan. However, Guidant also has a fair amount of complaints, many of them about its customer service. All together, Guidant Financial gets an aggregate review site rating of 2.9/5 stars based on available third-party customer rreviews.
Common customer complaints include:
Guidant also garners its fair share of praise from reviewers:
Guidant Financial is best known for its ROBS plans, which, while niche, can be a good option for entrepreneurs who need funding to get a new business off the ground. Guidant also provides an easier way to get an SBA loan to finance your franchise or independently owned small business. Terms and fees are fair and clearly stated on Guidant’s website.
However, caveats include longer times to funding than other online SMB lenders, somewhat iffy customer service, and some mixed customer reviews putting Guidant Financial at a 4/5 star rating overall. More mature businesses with good or excellent credit may be interested in the convenience offered by Guidant, although if you qualify for this lender’s products, you probably also qualify for a traditional bank loan.
Didn’t find what you were looking for here? Can’t meet Guidant’s credit requirements? Many lenders do not require a credit check. Entrepreneurs looking for funds may also want to consider some startup loan alternatives.
Merchant Maverick has been researching and reviewing business lenders since 2015. Our writers have tested over a hundred different funding products, including traditional term loans, online loans, lines of credit, start-up loans, merchant cash advances, and equipment financing. In each review, we evaluate rates and fees, services, eligibility requirements, application process, sales and advertising transparency, customer service, and user reviews.
Read more about how we rate business loans and funding products.
When comparing different lenders and loan products, we consider many data points, including the ease and transparency of the application process, interest rates, repayment structure, sales ethics, time to funding, revenue and time in business qualifications, and credit score requirements. Our lists of the best funding products include only those we’ve deemed worthwhile from multiple vantage points, and often share qualities such as widespread accessibility across fifty states, low rates, flexible requirements, and competitive borrowing amounts.
We spend an average of 10-15 hours researching and updating each one of our lists, making sure the loans and funding products included meet our internal standards for quality and reputation.
The Merchant Maverick Seal of Approval 🏆
Guidant Financial |
|---|
After hours of in-depth research and evaluation, we can confidently recommend this brand to our readers. Get started today and see Guidant Financial for yourself.
The Merchant Maverick Seal of Approval 🏆
Guidant Financial |
|---|
After hours of in-depth research and evaluation, we can confidently recommend this brand to our readers. Get started today and see Guidant Financial for yourself.
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Merchant Maverick’s ratings are editorial in nature, and are not aggregated from user reviews. Each staff reviewer at Merchant Maverick is a subject matter expert with experience researching, testing, and evaluating small business software and services. The rating of this company or service is based on the author’s expert opinion and analysis of the product, and assessed and seconded by another subject matter expert on staff before publication. Merchant Maverick’s ratings are not influenced by affiliate partnerships.
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Our team of experts spends hours on every review so that we can find the best companies to recommend to our readers. Guidant Financial made the cut.
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