An excellent place to set up an offshore account is with an NZOFC (New Zealand Offshore Financial Company) in New Zealand. The typical intention of depositing money in an NZOFC is to let it stay there and grow. However, if the depositor needs a short-term bridging loan for his business or personal reasons, he can access his offshore funds through a loan. When obtaining a loan, the individual or the company does not withdraw their offshore funds and will simply repay the loan on time. Here we discuss the practicalities of gaining access to and use of the money that an individual or business has previously deposited abroad without interrupting the initial plan to grow assets abroad. We also discussed the issue of not triggering any “red flags” when obtaining this loan.
Year NZOFC
A New Zealand Offshore Finance Company is a chartered entity in a democratically and politically stable island nation of New Zealand in the South East Pacific of Australia. An NZOFC is not a bank in the sense that it is established under a set of laws separate from New Zealand banking law. However, an NZOFC offers a full suite of banking services including taking deposits, offering certificates of deposit, making loans, transferring money, offering trust services, providing credit and debit cards, and more. An NZOFC can be a good option for offshore banking services, as its structure can provide more flexibility to serve the needs of its clients than regulated banks. New Zealand is an English-speaking country whose laws are derived from British common law. A person who wants to do business abroad, bank abroad, or simply take advantage of the various asset protection features of moving assets abroad can use an NZOFC as part of an overall overseas asset protection solution.
Get an asset-based loan from an NZOFC
In theory, any money you deposit anywhere in the world is yours and you should be able to set up a short-term loan at a couple of percent above the rate you get on your deposits. In practice, there are some high-tax jurisdictions that make it illegal to have your own bank account abroad to provide you with a loan. There are two methods of obtaining a loan and avoiding problems with the tax authorities and others on the ground. These are to borrow from the bank rather than directly from your own account or to establish a trust structure as a self-established entity.
Establishing a loan negotiated by the NZOFC may be the simplest solution to this dilemma. In this case, the depositor will put part of his assets in a certificate of deposit and then obtain a loan, usually at a couple of percent above the rate that the CD pays. Generally, there is nothing wrong with borrowing money from any bank anywhere in the world that will upset any authority in any high tax jurisdiction. Therefore, this is a possible solution to obtain a loan based on your own money.
The other solution requires another offshore legal vehicle, a trust. Such a self-established entity can legally grant a loan to the person in question and the person can accept it. The important part of this is properly setting up the trust and NZOFC account using a competent attorney to get started. In general, having a competent attorney will help in all matters related to offshore finance.
There are many offshore jurisdictions and many offshore legal vehicles, such as bank accounts with an NZOFC, international business corporations licensed in Belize, private interest foundations in Panama, and trusts in New Zealand. The original intention of the person who created them will best be fulfilled if you configure the entire package correctly at the beginning. Therefore, access to offshore money through a loan will also be easier.
