Why waste time filling out countless forms and waiting weeks for a loan at a bank you’ve been using for years? Be your own bank!
Did you know that investment-backed lending allows you to use your own money?
You can continue to increase your wealth in the market, borrow money without losing your investments, and even use some of that money to launch new revenue streams to grow your company. With a nod to tax-smart tactics we’ve previously discussed, here’s why this is a wise move and how to make it work.
Why Give Up on the Bank Application?
Banks require you to comply with a number of requirements, including updated financial statements, tax clearance, collateral, B-BBEE scores, and records that resemble a SARS audit. Even devoted clients must wait two to six weeks and are rejected 30% of the time.
What is Investment-backed lending?
The right investment companies lets you borrow against your own investments—within days—without selling your investments. Your money stays in the market, growing tax-free or tax-efficiently, while you get quick cash to seize opportunities or cover gaps. Your GROWTH in the market may even cover your LOAN if you are with a good adviser!!
How It Works
You use your investment as collateral, borrowing 50 – 60% of its value at low rates (prime minus 0.5%, to prime plus 0.5%). Unlike selling assets, which kills your growth and may trigger taxes, your investment keeps compounding. Pay the interest at the end of the term and roll over with a small fee. Repay flexibly; interest-only and without the bank’s red tape.
Why It’s the SMART Move:
– Speed: Cash in 3–7 days, not weeks.
– Growth Continues: Your investment earns 8–12% annually, outpacing inflation (5–6%).
– Low Cost: lower interest vs. bank loans at Prime plus rates. – No Tax Hit.
Take Control of Your Financial Future.
Are you ready to start building your wealth? At FFREEDOM, we provide expert advice on financial growth and wealth creation. Our advisors are here to guide you through every step of your financial journey, from investment strategies to retirement planning. Whether you’re just starting out or looking to optimize your portfolio, we can help you achieve your financial goals
