IBC® for Business
The best place to warehouse cash
Infinite Banking Concept® (IBC®) for Business
Business owners are significantly underserved in the financial realm. During the early stages of a business, finances are tight, and every cent is crucial for survival. Although it’s important to establish saving habits early on, they often take a backseat as the business demands immediate attention. Consequently, many small business owners resort to accumulating substantial debt to fuel their growth. They require additional capital for hiring new employees, investing in marketing efforts, and a myriad of other necessities.
Fortunately, Infinite Banking® presents a solution to address these financial challenges. By leveraging this approach, business owners can access funds to cover these expenses while simultaneously reclaiming excess interest and principal payments that would otherwise go to external institutions. Moreover, this strategy allows for the creation of a tax-free retirement plan. From day-to-day cash flow to employee salaries, Infinite Banking® facilitates seamless financial movement. As business owners tap into this advantage, their dependence on traditional financial institutions for working capital diminishes significantly. Over time, a business can meet 100% of its financing needs through an Infinite Banking® Plan.
Tax Advantages
Are there any added benefits?
The Canada Revenue Agency permits interest deductions on legitimate business loans, which can be financed through your banking plan.
Businesses understand the importance of liquidity, but surplus cash often sits in a bank account, earning minimal returns and being subjected to high tax rates. Business owners cannot afford to risk this cash in the market, fearing market crashes or the need for immediate liquidity.
Think of Infinite Banking® as a private non-invasive line of credit that doesn’t require constant invasive qualification once established. Additionally, you don’t forfeit the interest you pay; you can recover it through the banking process, while enjoying substantial tax advantages.
The Perfect Account
What are the characteristics?
Now envision the characteristics of the perfect account for such funds:
- Safety
- Liquidity
- Tax-Free
- No loss
- No volatility
- Guaranteed
- Competitive Returns
- Non-invasive flexible loans
- Potential Creditor Protection
Infinite Banking® provides the ideal solution for businesses to store their cash. It enables businesses to assume the role of their own bank, unlocking numerous benefits.
Once funds are within an Infinite Banking® policy, business owners can utilize them for various purposes, including:
- Purchasing large equipment for your business
- Procuring company supplies or furniture
- Establishing employee retirement programs
- Implementing employee health and benefit plans
- Financing your payroll
- Attending business conferences and associated costs
- Acquiring company cars or delivery vehicles
- Covering building leases and deposits
- Investing in corporate-owned residential or commercial real estate
- Managing travel expenses and other benefits
- Securing business loans
- Facilitating acquisitions and mergers
- Creating key employee plans
Life insurance is an essential component for business owners to safeguard their company’s debt and provide for their families. It is not merely an optional addition but a crucial element that should be a regular part of every business owner’s portfolio. Throughout the accumulation phase of their lives, business owners often benefit from various write-offs provided by their businesses. Consequently, the desire for additional tax write-offs is often diminished. However, once business owners retire and sell their businesses, they typically find themselves with limited or no tax deductions. By maximizing their Infinite Bank® account, they can generate a steady stream of tax-free income.
Unlike tax-qualified plans recognized by the Canada Revenue Agency (CRA), life insurance is not subject to the requirement of funding the same program for employees. The amount of money that can be saved within a life insurance contract is not restricted, except for any limitations specified within the contract itself.
The flexibility of Infinite Banking accounts can provide significant advantages, especially considering the fluctuating nature of business revenue over time. It offers a straightforward and seamless process without the need for additional documentation or tax forms. In fact, the existence of an individual Infinite Banking account remains completely undisclosed to the government, eliminating any reporting requirements.
Furthermore, Infinite Banking® ensures instant liquidity for the owner’s beneficiaries or estate in the event that the owner retains ownership of the business until their passing.
There is a better way!
As an Authorized IBC® Practitioner I’m here to help you plan your IBC® strategy, let’s clear up your questions and book a free personal consulting!
Book a Conversation today
