Immediate Financing Arrangement (IFA) | Leverage Strategy

The "Cash Flow" Dilemma

Many successful business owners know they need permanent insurance for estate planning, but they hesitate to write the check. Why? Because that money could earn a higher return if it stayed in the business.

"The Opportunity Cost of paying premiums is often the biggest barrier to proper planning."

The Solution

An Immediate Financing Arrangement (IFA) solves this by allowing your corporation to purchase the policy and immediately borrow back the premiums from a Canadian bank.

In effect, the bank pays the premium. You verify the collateral, pay the interest (which is tax-deductible), and keep your capital working for you.

How It Works

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1. Policy

Corp purchases Life Insurance.

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2. Pledge

Asset pledged as collateral.

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3. Loan

Bank lends back
up to 100%.

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4. Invest

Capital re-invested
in business.

Who qualifies for this?

This strategy is generally suitable for corporations with:

✓ Consistent, strong cash flow.
✓ A need to retin capital for operations or investments.
✓ Comfort with moderate leverage and variable interest rates.

Immediate Financing (IFA)