Short YouTube video by Jayson Lowe answering: Yes — loans can be used to buy business equipment. Lowe warns that traditional bank loans place control and risk with the lender (credit checks, personal guarantees, loss of equipment on default) and recommends using the infinite banking concept to self-finance and recapture interest, thereby retaining control.
Staying on the vein of loans. Can a loan be used to buy equipment? Can a loan be used to buy equipment? Absolutely. That happens day in, day out. It's happening as you're watching this video. Business owners are borrowing money to purchase equipment for their companies. The key here is who is in a position of control as it relates to that borrowing. You go to someone else's bank, you go through a lengthy nosy credit application. You, you have to provide personal guarantees. You're essentially agreeing to someone else's repayment schedule someone else's loan terms. If you default for any reason, you not only ruin the credit, but you also lose the equipment. And so rather than put yourself in that position, put yourself in a position where you're controlling how you're financing the equipment by implementing the infinite banking concept and you're also recapturing the interest, the money that you would have otherwise paid to someone else's bank. What better position to be in than a position of total control?
