Are you a business owner or preparing to start your own small business. Many people that have started their own business know what it takes to create something from nothing. It takes a lot of commitment, drive and hard work. One of the most difficult hurdles that limits so many people from starting a business is an inability to get funding to start a business or to grow an existing small business. When a business is starved for capital, it cannot survive which is why so many business owners end up losing their business within the first two years of opening their doors. Banks and other creditors are a hard sell when it comes to funding a business and they often have stringent requirements that a borrower must meet just to be considered. What’s a person to do if they have a dream of starting their own business? You can fund your business or business expenses with the Infinite Banking Concept.
Infinite Banking And Small Business
The Infinite Banking Concept uses specifically designed whole life insurance policy to create a cashflow system for the policy owner. This system protects your wealth inside the system from excessive taxation and offers the only true compounding you can find on a financial product. However, the power is in the cash value contained in your policy. You can borrow against that cash value in your policy and use that money for your small business needs. If your policy is big enough you could be funding a business entirely, borrowing from yourself and not the bank. If you have a smaller policy, imagine the power of managing major expenses like paying rent, purchasing equipment or vehicles, or even funding business trips with a policy loan. Infinite Banking gives you more power as a business owner.
The Benefits Of Policy Funding
There are several benefits that come from funding a business venture with IBC:
- Financial Solvency – The less money that your business owes to creditors means more profit for your business. Most businesses have to operate for anywhere from 5 to 10 years with a massive overhead to become solvent, but not those funded with IBC.
- Recovered Expense Costs – Most businesses have to take their expenses as simply that: an expense. However, when you use the Infinite Banking Concept to cover business expenses and recapture those costs, you actually recover that cost while recording it as an expense for your business.
- Opportunity Cost – Opportunity cost is the amount of money that could have been made on money before it had to be transferred to some other expense. When a business has major expenses, there is also opportunity to consider. This loss, when recaptured, means that business owners who use the Infinite Banking Concept don’t lose more on the opportunity cost of the money they invested into funding a business.
- A Safety Cushion – Hit a rough patch and having trouble making this month’s payment back to your policy loan? Guess what? No one is coming to bang your door down and threaten you for the money or repossessing your assets. If for some reason you don’t pay back the value of the loan by the time you graduate from this plain, the value is just deducted from the death benefit. Imagine the amount of stress that takes off of a business owner to be given just that little wiggle room when it’s really important.
That’s not to say you shouldn’t remain faithful in your repayment of your policy loan. After all, you want to recapture those expenses and turn it into profit.
A Word Of Caution – Find The Right Financial Partner
While funding a business with the Infinite Banking Concept is a great strategy to maximize your savings and your profits early in the creation of a small business, not just anyone can design a policy that can be used for such purposes. In order to make the most of this plan and protect your business and your assets, you need a financial partner. That’s where Factum Financial comes in. Our team of wealth strategists will design a policy with your business in mind, giving you the security of of our cash flow system while also giving you the freedom to run your business the way you see fit. Contact our wealth strategy team today for your free wealth strategy session or to find more information today.
Click here to read the previous blog posts from Factum Financial.