Short transcript excerpt from a YouTube conversation (featuring Jayson Lowe) introducing the topic of equipment financing for businesses. The speakers frame a question about methods to finance business equipment, signaling a discussion/Q&A on financing options.
Let's start with equipment, because that's one thing that definitely comes up a lot.
Okay.
And a question surrounding equipment would be, how do you finance equipment for your business?
How do you finance equipment for your business? So there's three primary ways that business owners go about doing that. So one primary way is paying cash. And business owners understand that maybe through their accountants language around creating a sinking fund where you save money on the books of someone else's bank. So wherever your commercial, you know, your professional bank account is for your business, you save up the money, then you withdraw it. When you have enough to go buy the equipment, you've got the equipment, someone else has got all your money, and you've got to immediately begin saving again or creating that next sinking fund so you can go buy that next piece of equipment. The second method is leasing. And for business owners, that's something that's been shared with them. That's really advantageous from a tax planning standpoint as well. But from a financing standpoint, the person who bought the equipment that you're leasing is laughing all the way to the bank, literally. And then the third method is financing, where you apply for a loan, you go through a lengthy, nosy credit application. You may have to even provide a personal guarantee or a letter of credit or a combination of both. But all of those three financing methods involve a permanent transfer of money away from the business owner. Whereas business owners that we work with, who understand and who implement the infinite banking concept, they're financing their equipment, they're controlling how they're financing that equipment. They're recapturing the interest, the money that they would have otherwise paid to someone else's system. They still get the equipment, and they've got all the capital growing in the business. It just puts them at an advantage that their peer group can't even compete with. And so our business owner clients who embrace this concept, they recognize the advantage of being in a position of total and absolute control and keeping that money exactly where it belongs in the business.
