Richard CanfieldPodcast Host and IBC Advisor, Ascendant Financial · Authorized Infinite Banking Practitioner | Author of 4 Books

Why Capitalization Matters

26 Mar 2025 · 1 min

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Richard Canfield explains that business growth begins with capitalization—initially putting capital into a business structure. He references Nelson’s book "Becoming Your Own Banker" (noting a grocery-store example on pages 15–16) and describes accessing capital later via policy loans or using collateral, noting the available access may be smaller than the initial input.

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These are the different stages of life. It really begins here at capitalization. You can't have something if you don't get it started. Putting some capital in. In our diagram here, what you'll notice is you're seeing, you know, this arrow with money going in. You have to put something in to get it started. You got to start that business structure. Referring to Nelson's book of becoming your own banker, he really identifies this a lot. In the grocery store example on page 15 and 16, he expands on what we're talking about there. But you also see an arrow here where your ability to access capital. So this would be like taking a policy loan or the ability to tap into your system the power of collateral. You may not have access to the same amount that you put in. Notice that the arrow size isn't as large. So just giving a representation there because we're in that buildup phase.