Financing Accounts Receivable
for Retirement and Asset
Protection
Accounts receivable financing is one of today’s
hottest marketed business strategies. It involves borrowing
against your receivables on an interest-only basis and
then investing the proceeds in a tax-deferred annuity
or life insurance product. The first goal is to successfully
arbitrage the simple interest you pay on the loan against
the compounded growth within the annuity or life insurance
product to increase your retirement funding. The second
goal is to remove the value of the accounts receivable
away from the reach of business creditors and place
it into an asset protected environment.
But are these goals really met? Yes or No, depending
on how the program is structured. Not all accounts
receivable financing programs are alike and, as you
may find out too late, nobody looks out for your interests
in these transactions. Financing Accounts Receivable
for Retirement and Asset Protection presents a candid
look at the subject, including the mechanics of such
programs, economic underpinnings, asset protection
and tax issues. An overview of the types of annuities
and life insurance products used in accounts receivable
financing is included, plus information on alternative
programs, factoring and finding the right program for
you.
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Beware High Interest Rates!
Accounts receivable
financing programs make no economic sense if
your cost of borrowing money exceeds 7%. If you
have been sold into an A/R financing program
where the initial rate exceeded 7% then you may
have been defrauded by whoever sold you into the
program.
Click Here for more information on
recovering damages for being sold into an A/R
financing program with a high interest rate.
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Billing
& Collection Company (BICOCO)
 The more intelligent alternative to A/R financing in the BICOCO, which is
specialized company that is inserted between a business and its customers to
divert profits so that wealth does not build up in the business and thus
become exposed to its creditors. The A/Rs of the business are more strongly
protected than by an A/R program, and there is no loan
involved or any loan interest payments to be made. The BICOCO is particularly useful for
professionals in high-risk occupations.
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