3 Types of Insurance-Backed Line of Credit Applicants
2. An individual who needs to refinance other high-interest debt or must pay a large or unexpected bill.
Between student loans, medical bills, and other debt, consumers need options.
For one, credit card debt has significantly jumped by 13% over the past year, with some of the highest interest rates of any kind of debt.
In fact, it’s likely that consumers are paying anywhere between double or triple the interest rates on credit cards than they do on most auto, student, or home loans.
Because an IBLOC offers competitive interest rates, monthly payments become more manageable for borrowers.
3. A business owner with liquidity needs.
Managing a business in today’s landscape of rising interest rates, inflation, and an impending recession — coupled with ongoing staffing shortages — is not easy.
If a business owner needs liquidity because they are facing debt or looking for quick cash to expand their operations, it’s likely a good time to talk about a line of credit.
Financial professionals know that helping clients manage their finances and long-term goals is not easy, especially in today’s economic landscape. Considering alternative types of financial support like an IBLOC, however, helps clients get quick access to cash for personal or business needs.
Abdullah Rajput is director and IBLOC lead at The Bancorp Bank.
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