Now is the Best Time to Prepare for the Next Economic Downturn
By Pamela Yellen and Dean Rotbart
Executive Summary: Among the best non-conventional or alternative financing options for small businesses are loans taken against the owners’ or business’s whole life insurance policies. Correctly structured, policies such as those that conform with the Bank On Yourself strategy, are tax-advantaged and readily accessible sources of the cash that every small business owner requires to survive harsh economic times.
DENVER – Small business owner Terry Hauschulz recently needed a $15,000 loan so that he could pay the tab on his October 15th federal tax return.
Clients of Hauschulz’s 10-year-old medical equipment repair business have been dallying when it comes to paying him. “Great receivables, no cash,” Hauschulz laments.
The 55-year-old proprietor mulled asking his commercial bank to help tide him over. “You know what that would be,” he says of the iffy and laborious process of winning a loan approval these days even for those borrowers with good credit.
Instead, Hauschulz, like tens of thousands of other self-reliant entrepreneurs, professionals and small business operators, looked to non-conventional finance options.
The solution he selected – borrowing against his individual whole life insurance plan – allowed him to promptly receive the necessary funds without a credit check, without having to submit financial statements, without needing the approval of a loan committee and without any bureaucratic hassles.
[Read more…] “Small Business Owners Turn to Whole Life Insurance and Other Alternative Financing Options to Overcome Tight Credit”