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Business Loans (Insurance Funding)

Business Loan Insurance Funding   We all rely on outside funds to help manage and grow our companies.  We utilize borrowed funds, or acquired capital in most cases.  The capital comes in the form of public and/or private investments, governmental grants, public or private loans.  Business loans are common from Banks, and smaller lending institutions.  Some small business owners have capital made available to them through the Government run small business association.   Most investment and business loan agreements require collateralization.  Custom designed life and disability insurance provides lenders with the additional safeguards to protect against catastrophe.    Keep in mind that the cost of this coverage is reasonable and is many times built into the loan agreement, such that your out of pocket cost is the loss of use of the money.  Additionally, lending institutions are more flexible when this securitization is in place.     Utilization of individual disability insurance or  assigning a portion of existing individual disability insurance to satisfy a lender’s requirement is not sufficient or efficient. This places you at tremendous risk and does not satisfy your loan requirements.        
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