Why Would You Want to Become Your Own Finance Company?
Does your business operation or professional practice require a significant or on-going investment in automobiles, trucks, forklifts, production tools, computers, medical/dental or laboratory equipment?
Does your business use a line of credit with a lending institution?
Would your company benefit from financing your customers purchases, thereby allowing them to buy now without the hassle of going to third party lenders?
Would you like to make the profit that is currently made by third party lenders on installment loans, mortgage loans, financing leases and operating leases?
Have you lost money in your investment portfolio?
Will you be in a higher tax bracket when you retire than you are today?
Every business owner is plagued by three major wealth transfers:
Taxes
Interest paid to others
Investment losses
These wealth transfers by themselves are bad enough, but, compounded by the opportunity cost (interest that could have been earned on the money had it not been transferred to someone else), a business owner’s loss may be in the hundreds of thousands of dollars.
A BUSINESS OWNER HAS OPTIONS
Option 1- Use financing services from banks and other third party lenders while depositing the business owner’s capital in banks, investment accounts and retirement plans.
or, better yet...
Option 2- Start a finance company that will recapture the profit the business owner would have given to third party lenders, and still earn a competitive return, without market risk and without the bracket creep most retirement plan participants face.