Two-Brain Radio: Good Debt vs. Bad Debt With Clay Ferrer

On this episode of Two-Brain Radio, Greg Strauch speaks with Clay Ferrer, Founder and CEO of Rigquipment Finance, a lender that specializes in boutique fitness facility financing.

Clay—a passionate CrossFit coach in his own right—talks about the difference between good and bad debt, why you might take on debt for purchases and reserve cash on hand versus paying up front, and why the best time to take on debt is when your business is already in a good place.

He explains the different forms good debt can take—such as the purchase of hard assets—and how to maximize ROI on those investments from Day 1. He also discusses the bad-debt pitfalls gym owners should avoid.

Finally, Greg and Clay discuss Riquipment's exciting partnership with Two-Brain Business, which allows gym owners to finance the Incubator.

Links:

https://rigquipment.com
https://www.uplaunch.com

Contact:

[email protected]
571-933-8339

Timeline:

4:26 – From investment banker to the financial services sector. 

7:46 – Watching the CrossFit Games hung over on New Year’s Day and finding a gym via windshield flyer.

9:36 – From athlete to coach to entrepreneur: The birth of Rigquipment.

11:47 – Taking on debt for a purchase vs. paying up front. 

14:42 – Defining good debt.

20:06 – The benefits and dangers of business credit cards. 

23:00 – When to take on good debt. 

25:44 – Looking at the ROI of a good-debt purchase.

30:54 – Defining bad debt—going beyond the credit card.

31:37 – Merchant cash advances: just a BandAid.

33:22 – Short-term working capital loans: It’s a (interest) trap!

39:00 – Financing the Two-Brain Business Incubator with Rigquipment = good debt.