Flow of Capital

Increase your bank’s assets by borrowing and paying back your money

The assets of your captive bank grow larger, more quickly, when they are put to work as loans to you (or a corporation or partnership you control). This follows the principles of volume and velocity that were introduced earlier.  To recap, as you borrow and pay back loans, your captive bank assets increase without losing any money to commercial bank overhead and profits.

Setting up a captive leasing company is an ideal way to apply the assets of your captive bank while also nourishing their growth.  For most agricultural operations, the value tied up in equipment is a major portion of capital assets.  If the equipment is purchased for cash, its value depreciates over time.  But if the equipment is financed through a lease, depreciation is captured through tax-deductible lease payments.

If you are making those payments to your captive bank, you realize double benefits of a captive leasing company.

Most important, there are dramatic advantages to be realized by you as both the lessee and the lessor of your captive leasing company.

Follow this flow of capital sequence to learn more, or contact us at any time for a direct, personal explanation of how to set up a captive leasing company.

Next Step: Flow of Capital - Lessee Advantages