Liquidity is essential for every business as it gives the organization the ability to convert its assets into financial value (i.e., cash). In addition, financial experts mention that healthy liquidity can help enterprises tide over economic challenges, plan for the future, and secure loans. An infinite banking calculator is helpful software that can help businesses improve liquidity and cash flow. Here are a few benefits of using this banking calculator.
1. Helps Create a Borrowing Strategy
Businesses need substantial working capital to ensure the smooth running of business activities, tap business opportunities and increase profitability. Whether you need capital to hire new staff, train existing ones, upgrade infrastructure, or purchase new equipment, businesses need financing for their new ventures.
An Infinite banking calculator can help perform a loan analysis and analyze payment options and helps you find a way to prevent cash flow bottlenecks. The software can suggest different capital sources and give you a complete picture of your borrowing strategy and cash flow.
2. Helps You Understand How Much Money Your Investments Will Generate
When you invest, you first want to know how much money you will make from the investment. The banking calculator shows you annual cash flows, including withdrawals and input levels at different levels and varying interest rates.
The calculator can help you know how many investments you need to make to gain a certain amount of profit. The accurate cash flow chart over the years shown by the calculator helps make the right investment decisions and keeps you in control of your financial situation.
3. Gives a 360° View of Financial Opportunities
Financial planning is essential for the next life stages and is never done in isolation. There are several things you need to consider when planning for the future. First, you should consider the following:
- Income and expenses
- Existing investments
- Short-term and long-term liabilities
- Liquidity situation
- Life events
- Life goals
- Risk appetite
- Insurance cover
- Inheritance
The banking calculator can take all financial inputs and picture financial health in real numbers and graphs. It gives you clarity and a vision about what you need to do to achieve your financial and life goals. The 360° view presented by the calculator ensures you do not miss any growth opportunity that will take you closer to your goals.
4. Positions You as a Trusted Financial Expert
When you have a banking calculator to help, you can logically and honestly help your clients understand the truth about their financial situation. You can also tell them about different financial options they have that they might not be aware of.
Simply put, the banking calculator positions you as the most trusted financial expert for your clients, and they are more likely to trust your financial decisions.
5. Determines the True Cost of Paying Cash
When you buy an automobile, you have two options – take a car loan or pay by cash. With the IBC strategy, you can clearly understand how paying in cash now can affect you in the future. The banking calculator helps you understand how you can improve your borrowing strategy.
To sum up, these are the benefits of using an Infinite banking calculator. The software has remarkable capabilities to build trust and confidence by enhancing your mathematical capabilities in giving sound financial advice to your clients.
