Small Business Owners Find Alternative Source For Cash Flow - New Report

Pamela Yellen, New York Times best-selling author and founder of “Bank on Yourself” has partnered with Dean Rotbart, a Pulitzer Prize-nominated journalist, to create and launch a new report that explains how small businesses can utilize whole life insurance policies as timely streams of cash flow during financial stress.

According to Yellen and Rotbart, “Among the best non-conventional or alternative financing options for small businesses are loans taken against the owners’ or business’s whole life insurance policies.”

When correctly employed, these policies allow the small business owner to access required cash without submitting to credit checks, or providing financial statements, and there’s also no need for a loan committee’s signature.

The latest National Federation of Independent Business figures for 2009 claim that 55 percent of small businesses tried to attain more credit that year, and 50 percent were not successful. Plus, 33 percent of small business people who tried to renew their credit were turned down.

Yellen, who has investigated over 450 savings and retirement planning strategies and vehicles before learning about Bank On Yourself, adds, “Whether through acute foresight or just an extra dollop of good luck, those small business owners who best withstood the financial assaults of The Great Recession did so because of decisions they made and actions they took years earlier. By contrast, those who weren’t prepared for the economic meltdown – but merely tried to respond once it arrived – have fared the worst.”