Leveraged Income
Strategy (Kai-Zen)
for Businesses
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Competitive Advantage and Protection:
Kai-Zen is a unique business strategy that allows a company to achieve a competitive advantage by offering the best benefits, provides more protection, and potentially save more for its employees' retirement. Kai-Zen benefits provide the extra funding to set any company apart without having to increase their budget.
The Departure or premature loss of a key executive can significantly affect a company's bottom line. The Kai-Zen strategy helps provide the additional funding required to cost-effectively fund financial needs such as Employee Incentives (executive bonuses deferred compensation or other highly compensated employee incentives), and contingent Business Liabilities (Buy/Sell, key person insurance, partner buyout, succession planning, etc.). -
More Cost Effective than Traditional Plans:
Small business can find it financially challenging to offer competitive employee benefits. The Kai-Zen strategy uses leverage to help cover the costs of the additional benefits needed to attract top talent.
A unique feature of Kai-Zen is that there are no loan qualifications or loan documents signed by the employer or employee. The contributions made to the strategy act to fully secure the loan. Utilizing Kai-Zen allows companies to spend less on something that would otherwise be a substantial expense. This will ultimately improve their cash flow and decrease costs while offering the differentiation needed to compete for the best employees.
In addition, due to the high cost of benefits, businesses also find it difficult to provide adequite coverage for other business liabilities such as Key Person, Buy-Sell Agreements, Succession Planning, etc. These events can typically be funded at half the cost of traditional options with Kai-Zen.
