According to Steve Case, co-founder of America Online (AOL), he states, “Small business is the foundation of America.” While the benefits of entrepreneurship, to the U.S. economy, are as great as “gospel” to the financial gurus, for you
(the prospective new BOSS), it’s the personal rewards
that remain most significant: high earnings, flexible work schedules and following your passion.
As is often the case, capital is a key requirement, but there needs to be an actionable plan. Most business owners naturally turn to their local bank for startup capital primarily because it is their only option.
With a lack of options you lose control and are relegated to accepting whatever is offered.
If you have a cash value focused life insurance policy you can utilize your policy as your new business’ “private bank.” Having another source of capital gives you options, putting you back in the driver’s seat to choose what is best for you and your business.
A Policy loan is unlike any other loan out there on the open market-YOU have the control.
We all know the hoops that must be jumped through to acquire a loan from a bank. If approved we are told what to pay, when to pay, what the cost is, and the consequences of defaulting.
Taking a policy loan is the complete opposite. When you take out your contract with the insurance company you have:
- A Guaranteed Loan Provision
- Access at ANY time for ANY reason
- No Loan Mandates
This is possible because the insurance company will use the death benefit as collateral to secure your loan. This gives you, the new business owner, total control of your policy loan to grow your business AND
repay the loan according to what is right for you-ON YOUR TERMS.
Look for “So you want to be the BOSS!-Part III” in our entrepreneurship blog series. We will cover the benefits of using your policy as a source of capital to fund the specific needs of your business so you can grow your business.