My Business and My Banking Policy
Many of you may have a business, which has cash flow needs each and every month. But what if those cash flow problems could be solved with the help of your banking policy?
The process can be as simple as your business taking a loan from you, the owner of the policy.
You’ve got access to cash value for any reason. So, you may want to fund your business with it. Just create a document of loan terms where you get to pick the interest rate, the timeline, and maybe even add a balloon payment at the end because you expect the cash to be there by then.
Next, just go on about your work and let the business pay off the loan over time.
If you’re unsure about the interest charge, just ask around to see what the rate would be if you had gotten that deal done with a third party lender.
Businesses can often write off the interest charge as a deduction come tax time. Of course, you own the banking policy. So, the money that goes back into the policy will grow for you and give you more wealth. That means the charge to the business is a gain for you, the owner of the business and the policy. It’s a win-win.
This information isn’t meant to give you a specific tax advice strategy. All we want to do is show you how some of our members use their banking policies. Be sure to consult your licensed expert on your fact-dependent situation.
When you’re ready to get started on creating your financial legacy or if you have more questions, most questions can be answered by watching this video. Start there and then schedule a consult with my team when you’re ready to begin.