The Secret The Wealthy Use To Get Unlimited Funding (Use It To Build Your Business In 2025!)

Cash flow to a business owner is much like oxygen. It's not only necessary to keep the business alive, but it also keeps your muscles filled with the energy they need and keeps your brain operating and keeps your heart pumping. Business owners love to be in that position of total control. They want access to capital. They're not hitting the panic button, they're hitting the planning button.

In regards to business financing, and lots of questions that surround that from business owners, let's start with equipment. Cause that's one thing that definitely comes up a lot. 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, and 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.

So based on those three ways they can finance, would you say, is it hard to get equipment financing.

Would I say that it's hard to get equipment financing? I think in many cases it is. Even when a business is operating in profit and has good free cash flow, there's still a process where you have to jump through hoops to qualify for the financing. The arrangements of the financing are someone else's arrangements, not the business owner. So the business owner is not in a position of total control. Business owners love to be in that position of total control. They want access to capital. They need the access when the inspiration strikes, when the opportunity strikes, when the business plan calls for it. And they don't want to wait for someone else's bank to be ready to provide them with that capital when they need it the most. And so when these business owners embrace the infinite banking concept, they're stripping away all the irritation, the tension, the friction, the frustration commonly associated with financing. They're putting themselves in a position of total control. And it just creates a real peaceful, stress free way of operating their company.

Okay, so is a purchase of equipment considered an expense?

Is a purchase of equipment considered an expense? The answer is yes. When you buy a piece of equipment to generate revenue or to produce taxable income inside of your corporation, then that equipment is an expense to the business. Now the key is, if you look at it from this vantage point, think like a business owner. When you look at the balance sheet of your company and you look inside of the liability column, if you borrowed the money to buy that piece of equipment, that loan is going to show up as a liability on your business's balance sheet. Whereas if you sat down with the lender who financed the equipment for you and you looked at their balance sheet, that lending activity is going to show up as an asset, not a liability. So when the business owners that we work with embrace the infinite banking concept, they not only have the equipment that they have purchased to produce more revenue, but they now have also taken control of the financing of that equipment. So they become the banker as it relates to the business's needs. And a banker understands that loans are an invested asset, they're not a liability. And so this is just a paradigm shift in thinking for the business owner where once they catch it and they understand it, they can't get enough of it.

Okay, so.

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 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. Thank you. Than a position of total control?

Okay, so my next question would be a two part question then. Yeah. So is it better to lease or to finance equipment?

Is it better to lease or is it better to finance equipment? I would say that neither one is the best option if you're not in a position of total control. Here's what I mean. When you lease something.

You'Re essentially making a payment for something that you'll never own. And every payment that you're making is passive income to someone else. And you never own that item that you're leasing. So either leasing is a great idea.

Or the person who purchased what you're leasing is laughing all the way to the bank and they know something that you don't. And when you finance something that also involves making a monthly payment onto the books of someone else's system, you can't reuse the money, you can't earn interest on it again, it's gone. But everybody positions this with the business owner as a tax advantage. But we're thinking in terms of capital, not tax. Business owner would much rather have control of the capital, still mitigate their tax, but maintain control of the capital. We don't want money being transferred away from the company where it can't be used again. We want the business owner to be in a position of control. So when you finance the equipment, but you do that through the device of the infinite banking concept, you're never losing control of capital. You always have ready access to it. When a business owner hears that, they grasp it conceptually very quickly because they've all experienced the frustration and the tension of having to go the other route. Yes, you can lease things, yes, you can finance things. Both methods involve a permanent transfer of money away from you. How would you feel knowing that you don't have to finance things that way and you can keep the money exactly where it belongs in your business.

I.

Our clients who are business owners tell us that that makes them feel pretty damn good.

So it sounds to me like you're saying the only way to make the laughing stop is to have actual control over the situation.

Well, look, look at it from this perspective. You've got four characters in the financial play. You've got the depositor, the borrower, the banker and the bank owner. The business owner is not one of the four characters in the financial play. The business owner is the borrower and the depositor, but the business owner is not the banker or the bank owner. And the character who's making the most money, understandably so is the bank owner. So you, as a business owner, you're making a pretty decent living in whatever your business is. But believe me, the banker and the bank owner are doing really, really good because you're making the wheels of their business turn because all your money is flowing through the books of their system, not yours, regardless of what business you're in. So when you put yourself in a position to become the borrower, the depositor, the banker and the bank owner, and in addition to that, you still own your business, you create a real peaceful, stress free way of life financially and you keep the capital where it belongs in your business and you become the character making the most money. Understandably so.

Isn't that good?

That is good.

Like, is there anything stupid about doing that?

No.

Business owners got into business, they built a company because they want freedom. They didn't sign on to become a business owner so they could experience the frustration and the headaches of having to deal with some fat cat banker who needs to scrutinize every decision that they make as it relates to expanding and growing their company. That has nothing to do with creating more freedom. They want control.

That sounds like zero control to me.

Right. And so put yourself in the shoes of a business owner who's in a position of total control and I'll show you a business owner who's saying, man, what a peaceful, stress free way of life it is to handle these financial matters as it relates to my company.

What would you say is the best type of loan to use for business equipment?

What would I say is the best type of loan to use for business equipment? A policy loan from a life insurance company. Ideally a reputable mutual life insurance company. Now the only way to gain access to loans from a life insurance company is you have to be a participating dividend paying, whole life insurance policy owner. Your corporation can be a policy owner the moment that your Corporation does that, that policy begins to accumulate cash value immediately. The company can then borrow against that ever increasing cash value without ever interrupting its growth on its own terms. Meaning the corporation controls the repayment schedule. So the best type of loan, one from a life insurance company because it puts you in a position of control over the repayment schedule and you don't interrupt any of the daily growth of your own cash value, that is by far the best loan to utilize to purchase business equipment, hands down.

Okay, you've probably.

Over the years have heard of these two words, credit score. So what credit score would you say is needed to get equipment financing?

What credit score would I say is needed in order to get equipment financing? Well, when you're dealing with a conventional bank, they're going to look at what's called your FICO score to gauge whether or not you're worthy of credit. And typically a business owner who has a credit score in excess of 650 plus I would say would be a range where a lender would look at that and say, okay, that's a pretty healthy credit risk. You can flip the script entirely if you implement the infinite banking concept which I'm speaking about, the process that's outlined in this 92 page book titled Becoming youg Own Banker. This is my original copy. It's 16 years aged as you can tell. But this book changed my life completely. So you can flip the script entirely when you implement the infinite banking concept. Your FICO score, your credit score doesn't matter because you have ready access to capital on demand, on your terms. And the loans that you access from the life insurance company are not reported to TransUnion, they're not reported to Equifax, and there's no score required to get access to the capital. So that to me is far better than trying to worry about gauging what a credit score is so that I can not only borrow from someone else's bank, but transfer all my money permanently away to that other person's bank. I don't want to be in that position. I want to be in a position of total and absolute control. And the infinite banking concept keeps me there.

So if you're utilizing the tool and the right tool, your credit score won't matter.

Yeah, and the right tool is dividend paying whole life insurance, ideally with a reputable mutual company.

Now what about credit cards? Would you say that there are cons to utilizing credit cards to fund the business?

Oh, that's a really good question. Would I say that there are cons to utilizing credit Cards to finance a business? Yes, one, first and foremost is the human condition. So when you find yourself in a position where your expenses are rising to equal income, even in the situation where you're a business owner and you begin to tap into credit because you need it, because there's not enough free cash flow to finance the things that your business needs, that can be a pretty slippery slope if you don't have the necessary discipline to manage that financial activity effectively. And not to mention most credit cards are charging double digit interest rates. There's a far better way than credit cards. And that better way is the infinite banking concept, hands down. And the best way to develop an understanding of what the infinite banking concept is first and foremost is to get your hands on a copy of this book titled Becoming youg Own banker. It sold 550 plus thousand copies for a reason. The concept works. And so credit cards are a tool. You can accumulate points, you can, you know, take advantage of a 30 plus day float where you don't have to utilize your own capital to take care of whatever that investment or purchase is. But boy, that can become a pretty slippery slope if you don't have the discipline to manage it effectively.

Okay, so we've, we've talked a bit about business equipments, which is one side of a business, especially if they're equipment heavy. But let's shift to business funding. So just funding for a business in general. Okay, There might be some similarity in these questions, but now we're talking about more so capital. Okay, so how can I get money to expand my business?

How can you get money to expand your business? Well, there are a number of resources that you can tap into. So you can tap into the conventional banking system so you can meet with a banker. Describe the existing state of your business, where your business is headed. Banks love to lend capital to expanding companies. You can work with economic development corporations or SBA type organizations where their mandate is to help small businesses expand and they have ready access capital on favorable terms. But you need to have a business that's obviously razor sharp operationally in profit, generating some free cash flow. Or you might be on a path to that profitability or free cash flow, recognizing that regardless of what the options are, there's a process, there's a process of applying, going through underwriting and qualifying to get access to someone else's pile of money. A third method, an alternative method that is gaining increasing popularity, understandably so, is the infinite banking concept. This is a concept that was developed by my late mentor, the late R. Nelson Nash. Who wrote the bestselling number one best selling book titled becoming your own banker. And the infinite banking concept, the essence of it is, is to control how you finance all the things that you need, including expanding your business and being able to do that in a, from a position of control. And as a business owner myself, having a family group of companies, we have 13 businesses in our family group of businesses. We need access to capital. And whenever we've had to deal with a conventional bank or an economic development corporation, small business loan administrator, that process was a lot more tense and a lot more friction based than the infinite banking concept, which is a very peaceful, stress free way of expanding our companies. So if I had to choose one or the other, it would definitely be the infinite banking concept hands down.

So there's definitely better ways to increase a company's capital or access to capital than commercial banks.

Oh, 100%. There's private investment.

Right.

You can seek investment where people are going to put up capital in exchange for an ownership interest in your business. And that may be a voting interest or a non voting interest. And that works for a lot of people. Just look no further than how Jeff Bezos initially built Amazon. He literally scraped together in small bite size increments of capital these small investments from close family, close friends, colleagues that he knew from his business experience. And those people went on to become remarkably wealthy. And so private investment can be a good thing, especially if you're betting on the right jockey versus just looking at the horse.

Okay. I would say that two words that most people are interested in. Cash flow.

Yes. That's where all happiness begins. Cash flow. If you're in business. I mean, if you're in business.

So from a business perspective. Yeah. How much cash flow is good for a business?

Wow. How much cash flow is good for a business? If you're, if you were to look at it just through the lens of most people when they evaluate a company, they look at a company from a lens of revenue minus expenses equals you're either in a positive or a negative net income situation. You can have a positive net income business that has very little if any cash flow. So cash flow to a business owner is much like oxygen. It's not only necessary to keep the business alive, but it also keeps you, keeps your muscles filled with the energy they need. It keeps your brain operating, it keeps your heart pumping. And so cash flow means everything to a company. And most entrepreneurs when they get going in their business journey, nobody explains that to them. They burn through cash, especially if they have investors money they look at it as, you know, a run rate, a burn rate. There's all kinds of terms for wasting other people's money. You've got to put yourself in a position as a business owner where you develop the right financial disciplines from day one. That's not easy to do. So you've got to work with somebody who knows how to do that. And thank goodness we know how to do that really well.

So what would you say are some ways that businesses can maintain cash flow?

What are some ways that businesses can maintain cash flow, One of which is to prioritize accumulating a surplus. So in businesses that we coach the entrepreneurs that we work with, we lead them to developing what's called a capital surplus reserve. So from every dollar of gross revenue that they generate through their business activity, they automatically assign a percentage of that gross dollar. It's not a remarkable amount. It could be just a couple of percentage points. And you take that capital, you set it aside as a surplus reserve so that when you need to create a smoothing effect in cash flow for the business, especially if your business experiences variability or seasonality, you've got ready access capital to smooth out the cash flow of the business. And you're not experiencing those tense moments where it's like, oh my goodness, where's the money going to come from? To cover, insert whatever expense here. So developing a capital surplus reserve and maintaining it are two completely different things. We coach the entrepreneur on both how to develop it responsibly and how to maintain it with discipline.

Okay, so that capital surplus reserve is one way to manage the cash flow.

In a business 100%, because it's not just about developing it and maintaining it. It's where does that capital reside? Money must reside somewhere. And where we have our entrepreneurs put the money is into dividend paying, whole life, these insurance contracts that accumulate guaranteed daily cash value growth. It bolsters the balance sheet of the business, gives the business owner ready access capital on demand, on their terms. You can contribute almost unlimited sums, and you're attracting no tax on the buildup. And you are exempt from the passive investment income tax rules. All of these things are music to the ears of the entrepreneurs that we work with. And so it's not just a function of building it and maintaining it. It's understanding that it has to reside somewhere. And there's no better place to have it reside than here.

Okay, so if we're talking about your capital or your money must reside somewhere, then how much of that should reside and be left in the business.

Also.

A really good question. So if you understand that your capital must reside somewhere, how much of it should reside within the business? What entrepreneurs that we work with embrace wholeheartedly is having accumulated a minimum of 1/4, 90 days worth of what we call OPEX operating expenses. And that should be readily accessible, on demand and in short order when the business needs it. So look no further than any instance where a business owner's day to day is interrupted by something outside of their control. Whether it's a weather event, whether it's an economic event, whether it's a tariff event, something that puts the business owner in a position where they're no longer in control. If they have a surplus reserve equal to at least three months of their operating expenses, they're not hitting the panic button, they're hitting the planning button. Both buttons send the entrepreneur in two completely different directions. So that's what we coach our entrepreneur clients to build.

Excellent. So that's, yeah, preparation is definitely good because if you're not planning, then you're just planning to fail.

Well, I mean, that's a really good point. And the truth is that when a business owner gets going, they're so excited, understandably so, about their business idea, their method, their product, their service, combination of all the above. And they get really, really focused on growth. We need to grow, we need to expand, we need to scale the company.

And nobody's whispering in their ear loud enough to say, make sure that you've got a surplus reserve of capital in the event of whatever it is. So when the sky starts falling with the entrepreneurs that we coach, they're not reaching for their hard hat, they're reaching for their capital surplus reserve. And thank goodness they've got it, because keep stress at bay.

Now. Now this question will be obvious to a lot of people, sometimes on everyone. What happens when a business has no cash flow?

What happens when a business has no cash flow outside of the fact that the business owner is probably going to need blood pressure medication?

There's gotta be a reality check. Conversation needs to occur. And typically business owners often find themselves sitting in a corner talking to themselves, right? Because they don't have someone to lean on to say, I need help. Because they may view that as a sign of weakness. That's a sign of strength to step up and say, I'm in a cash flow crunch, I need some help. Because I don't know the how. I'm not sure how to navigate through this. That's why we rely heavily upon the philosophy of who, not how, the entrepreneur needs to Stand up and say, okay, who possesses unique capabilities to help me get through this? How?

The entrepreneurs that we work with, they know exactly who to call because we would have raised the warning flags long before they got themselves in that situation. But believe it or not, we do have entrepreneurs who connect with us that we've never coached, we've never met with. But they say, look, we understand and are learning that you guys are really good at coaching entrepreneurs. We're in a bad spot. We need some help and we can begin to guide them to solution and guide them to a much bigger future. So if you find yourself as an entrepreneur in that situation, get connected with the right person on my team without hesitation. You can't afford to wait, literally.

So we've talked equipment, capital, cash flow, all the exciting stuff, the purchasing and the dollars moving back and forth. At some point, a new business owner is going to ask themselves, how can I take money out of my corporation?

Yes.

So, yeah, okay, you said it best. Yeah. At some point, the business owner is going to ask himself or herself, how soon can I take money out of the corporation? If you have the right plan and you are structured properly, you should be accessing capital from the corporation from inception. You just have to understand how to structure your affairs properly so you can do that. But when you are in a position to begin accessing capital, most business owners are taught there's only two ways to do it. You either get it through the form of a wage, like whether you're in America W2 or in Canada T4 or taxable dividends. But when the business owner is introduced to a third method, which has been around since Jesus was a cowboy, you'll learn how to gain access to capital from your corporation in a way where you save tax significantly. You're playing by all the rules. From a tax perspective, you're inbounds 100%. But you're doing it in such a way where you're never interrupting the growth of capital inside of the company. So you're not depleting the company of any of its valuable resource called money. But you're still getting ready access to capital. You're just doing it differently. And the best way to discover how to do that is to get connected with the right person on my team.

So it sounds like there is a better way.

Other than a salary or dividends.

100%. Yeah. Yeah. And that's the thing. I just, I can't figure out why business owners have only been taught two methods of doing it. There's a third method which is.

I mean, there's no wrong choice. Right. Like, if you choose to take a wage, that's how you choose to get money. That's not wrong. It's just understanding the tax consequences of that and all the other consequences of doing it that way. No different than taxable dividends. Not that it's right or wrong. It's just a choice. So if you knew that you had a third choice that was going to give you significant advantage, then logically thinking, how soon would you want to investigate what that third choice is? As a business owner, I'm like, I want to learn that now.

Yeah, like yesterday.

Yeah. Business owners have a strong, well, successful business owners, they have a strong bias to take action, decide fast, act fast. That's one of our core values inside of our business.

Gather data, decide quickly, move quickly. And as it relates to getting access to capital, there isn't a single business owner that we work with that would say, wow, I wish I could learn how to do that more slowly with more frustration. I want to pay the most amount of tax, and I don't want to be in a position of total control.

We wouldn't be working with that business owner. We'd be giving them a gift certificate for a complimentary psychiatric evaluation.

Isn't that good, Ash? I knew you'd like that one.

Yeah, that was, that was pretty good.

Like, you know, you don't need our help, you need psychiatric care.

Well, hey, man, it is complimentary.

Anyway, so. Okay. So staying with corporation.

Yeah.

And staying with. Now that you've mentioned taxation.

Yep.

How do we avoid double taxation?

Boy, how do you avoid double taxation? I think, you know, most people would also be wise to discover how to mitigate singular taxation. Boy, we bring up double tax traps and people want to spontaneously self combust, especially business owners. But an example of a double tax trap. Well, think about it from this perspective. It's even worse. Like you're taxed personally. As a business owner, you are potentially triggering capital gains tax. You're potentially facing passive investment, income tax, estate tax.

Dividend tax. So the list just gets. Keeps getting bigger because the government's constantly hovering over your assets with a giant knife and fork, just waiting to devour them. So how do you avoid that and do that by playing by the rules and, and doing it completely legally and, and inbounds. You have to investigate whether it's personally owned dividend paying whole life insurance or corporately owned dividend paying whole life insurance when you have capital residing there. And then you need to get money personally or you need to get money out of the corporation into your hands. You can do that in a way where you avoid the double tax trap. Let me give you one quick scenario. You have an owner of a company, the owner of a company has been taking out capital in the form of a wage, taxable dividends, or both. Business owner, heaven forbid. The unthinkable happens. Business owner dies, the shares roll over to the surviving heirs of the company.

They can't get money out of the business without triggering tax. And the estate's got to deal with the value of that deceased person's ownership interest in that company.

Whereas when you introduce the dividend paying whole life insurance contract, the corporation in this case receives death benefit proceeds, that gives rise to the capital dividend account. The surviving heirs or shareholders can get that value out of the company in the form of tax free capital dividends. So let's tap into simple logic. I can either deal with things while I'm alive in a fully taxable or a tax advantaged way. And I can deal with things in terms of my final affairs in such a way where my surviving shareholders can deal with fully taxable or never taxable.

Which one do you think is worth exploring?

So you're saying that Ascendant Financial may be able to provide some advice on a solution?

Yeah, not only advice, but a path forward, a way to structure things properly. And look, these are exemptions that exist within the tax code. And with dividend paying whole life insurance contracts, it's the greatest exemption that exists within the Canadian and American tax codes today. There's no greater exemption. So how much less do you want to take advantage of that exemption? If you're not doing this, you're not taking advantage of any of that available exemption. And if you're a responsible individual and business owner, which I would trust that you are, you want to take full advantage of the exemption that's made available. There's absolutely no disadvantage to taking full value of the exemption. There's a reason why the government encourages people to donate money to charities. The government ain't got no damn money to do that. So if the government recognizes that these life insurance contracts have a death benefit associated with them and that death benefit has merit, the surviving family is not going to rely upon social based programs to have their financial needs met. And that gave rise to all of the living benefit exemptions within these contracts, that these business owners and individuals can take full advantage of and create a peaceful, stress free way of life while they're alive, it's remarkable. And so if you can Think of any disadvantage to investigating that. I'd love to hear it.

So it sounds to me that there's. Oh, that is good.

Advantages while you're living and advantages, unfortunately. God forbid, when you pass away.

Well, hey, you know what? One of my late mentors, he often said, I wish that everyone could pass away once for a week and see the problems that they leave behind. Whenever we meet with a business owner, one of the questions we ask is, what is your catastrophe plan? And we always get. Here, I'll show you the look that we get. Hold on, let me do this. This is the look that we get.

What is your catastrophe plan? Our what? Well, you're gonna. You're gonna exit the business in one of the. A few different methods. You're either going to retire, sell it, become permanently disabled, experience a critical illness, experience some form of marital breakdown or financial insolvency. God forbid, possibility you could disappear. Do you have a plan in place to address all of those?

The answer is always no. No. So you need a catastrophe plan in place, and that catastrophe plan has to ensure that not if, but when you're gone, that the business can carry on. The business contacts the business employees, the contracts. The business can still operate. Whereas when you have not addressed any of that, you die. Tomorrow, nobody knows where to look, where to find it, who to talk to. They can't get access to any of the money, they can't get access to the assets, they can't get access to anything. They're scrambling. Whereas if you have a proper plan in place and you have the right tool to address the financial needs, and you can create a guaranteed purchase price for the business and your surviving family can continue to rely upon the very same business or its financial resources, then you owe it to yourself to investigate that. Get connected with the right person on my team and we'll help you get that catastrophe plan in place.

So you don't have to be rich to get into the banking business. Because infinite banking concept is all about prioritizing the flow of money. The money is going to flow no matter what. Infinite banking concept is all about prioritizing the flow of money and has nothing to do with how much money you have.

What you have is what you have.

And you're going to flow that money anyways. So it's all about prioritizing the flow of money.