By Craig Floyd
Does your business have an emergency back-up plan? What happens when a major appliance or tool breaks down? Your business can not continue and be profitable without the tool or appliance and while it is broken down you most likely have to spend extra money to do the job that it did.
Many businesses have a line of credit but many don’t to take care of such incidents. It’s been my observation that to access money to replace or to repair becomes an expensive and frustrating process. Interest rates can be astronomical, there are always the gyrations of applying for and obtaining a loan and the time waiting for all this to take place can drive you crazy!
Let me share a quick personal experience that might be of value to you in your business. In 2006 I learned a financial strategy named Infant Banking System that I use as my emergency backup plan as well as many other financial needs. In just lately the walk-in freezer we use to store harvested raspberries until we make them into our raspberry products stopped working. It became apparent that it was necessary to replace it but walk-in freezers are not inexpensive, in fact the cost for a freezer adequate for our needs would be close to $10,000. Maybe to some that would not be a significant cost but for our operation it is substantial but I was not in a panic. Implementing the Infant Banking Strategy I knew I had a reserve that could be tapped into then replaced at my discretion ready for the next emergency or nonemergency need. I had the money in no time. I didn’t have to fill out any forms, I didn’t have to share confidential information with any institution, I can name my own repayment schedule and my own terms for the money. I will pay interest but the interest ends up in my account and my collateralized money continues to earn its own interest in my account and I can access this account again and again. The money literally becomes infinite.
There is one part of this system that I really regret….I did not know about it and then implement it 30 years sooner. Think of all the money that, unnecessarily and unknowingly, goes through your hands.
Never to be seen again.
Want to learn more? Give us a call at Henderson and Floyd.