Richard CanfieldPodcast Host and IBC Advisor, Ascendant Financial · Authorized Infinite Banking Practitioner | Author of 4 Books

Loans: A Liability or an Asset?

18 Mar 2025 · 1 min

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Richard Canfield explores whether loans are liabilities or assets, focusing on mutual life insurance and cash surrender value lines of credit. He examines how these financial instruments function differently depending on how you use them.

Chapters

Every loan is an asset somewhere else. It's a liability to someone, but it's an asset to somebody. Which side of the equation are you on?
If you took a look at a reputable mutual life insurance company and you examine their balance sheet, loans are going to show up as an invested asset on their balance sheet. If the commercial banks, the conventional banks, the regional banks, whatever lender is going to either collaterally assign a dividend paying whole life insurance contract or provide a financing arrangement so that a business owner can acquire one of these contracts. If they're going to do that. And in the case of like rich, think about a cash surrender value line of credit, completely different instrument.