Wolfe Capital Group Provides “Financial Fresh Air” For Doctors, Attorneys, And Professional Companies

Top Quote Professional Companies revieve funding on Accounts Recivable with new program offered exclusively by WCG. End Quote
  • (1888PressRelease) April 25, 2007 - Professional companies, such as those owned by Doctors, Dentists, Attorneys, CPA’S and Engineers create a net worth consisting primarily of accounts receivable. In most cases those accounts receivable generate zero net after tax return to the owner over the life of the business.

    Currently the norm is as follows: the owner retires, in some cases the receivable is collected, taxes are paid and the net remaining goes into the bank and collects 1% to 2% in interest after inflation and taxes. Wolfe Capital Group presents a Solutions Initiative that uses that asset, mitigates tax exposure, shields the asset from undue exposure and creates a supplemental fund for retirement. Tanner Steinborn, Accounts Receivables Specialist with WGC states, “Historically a Professional Corporation will factor (sell at a discount to a collection firm) the companies receivables, which after taxes could result in as much as a 70% loss of initial revenue”.

    With WGC’s Solution Strategies Program Steinborn states “the Corporate Assets are protected from lawsuit, the only financing cost is the interest paid by the company, which is in most situations fully deductible, The funding vehicle is investment grade insurance, or annunities based on IRC section 7702(a) and withdrawals are not subject to income taxes based on the same IRS statute”. Simply stated for example, with the WCG Solution Strategy, a 45 year old dentist with $800,000 in accounts receivable will increase its value to $1,760,000 after tax. If treated on a traditional basis, the same $800,000 receivable (with zero factoring discount) would have an after tax value of approximately $325,000.

    For more information
    contact Wolfe Capital Group
    at (702) 982-5226
    or view the website

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