Whether you’re running a startup or an established business, your business may require the occasional infusion of cash to keep it running or to take it to the next level. Where is that money going to come from? The bank? An investor? Your personal credit card? These are all viable options, but they have a few disadvantages that may limit access to the capital your business needs.
Bank Loans — This traditional approach is available in many forms: from business credit cards, term loans, business lines of credit and cash advances to equipment financing. While bank loans can satisfy cashflow requirements, the application process can be overwhelming requiring credit checks, extensive documentation, and even a detailed analysis of your business and marketing plans.
Investors — Another approach is to seek funding from venture capitalists and angel investors. The first obstacle is finding a suitable potential investor, as this can require substantial research and an extensive network of contacts. If you’re able to identify an investor, more than likely your business interests will be diluted, as most of these arrangements include ownership in the business in some form. They’re also going to have a say in how you run your business. If you’re not willing to give up equity and control, this route might not be for you.
Your personal funds — It’s not unusual for business owners and entrepreneurs to pump their own money into their businesses. Potential sources of personal funding include savings, home equity, credit cards, or a portion of your retirement account. Potential pitfalls include depleting your family’s emergency fund, taking on more personal debt than you can handle, losing your home if you fall behind on your home equity loan payments, or risking a portion of your retirement funds.
Kensington Financial Associates’ whole life insurance direct-to-business loans offer an innovative solution to your business funding needs. Since the loan is secured by the cash value of the policy, there’s no credit check or financial underwriting required. The interest rates are competitive and your payments may even have tax advantages (check with your tax advisor to be certain). Though you’re using a personal asset, these life insurance loans can be booked to your business. Taking out a loan against the cash value of your life insurance policy could be a hassle-free way to fund your business. Find out more by visiting https://www.kensingtonfa.com now.