Promissory Notes
What is Private Lending?
Private lending is the use of your Retirement Account as small lending institution. You can lend your Retirement Account funds out to other individuals and companies and earn interest on the loans.
How does that work?
Let’s say that you have a friend who’s buying a house or a car and is in need of a loan to complete the purchase. You have funds available in your Retirement Account so you agree to lend your friend the money needed. Your friend signs a Promissory Note that shows how much money was lent, at what rate of interest and the repayment schedule. The lender is your Retirement Account. All of the payments are made to your Retirement Account.
You can lend on both secured and unsecured terms. Clearly, if your account were making the loan to purchase a house or a car, you’d want the loans secured by the property or the car and property recorded.
Get started…
I am comfortable with promissory notes investing and I am ready to open my account with The Kingdom Trust Company. Click on one of the following forms to open the type of account you are interested in.