From the Author
We often get this question with our new (and sometimes returning) clients. In the following article, we discuss paying cash vs. financing and talk about the possible benefits that you can acquire with financing.
The discourse around whether to pay cash or opt for a suitable financing option is older than you think. If you run a business, paying cash and financing are both viable options, and there are benefits to each one. Using a finance option is an effective strategy for business owners to maintain positive cash flow. Not to mention business owners can also spread costs on large and complex projects over years, rather than paying upfront.
In conclusion, we talked a lot about financing and how it can help your business. This is not to say that paying cash isn’t a great option (because oftentimes it can be a great option.) However, when you purchase equipment or other business items with cash, you lose the cash that you could’ve saved by using a financing option. Possible tax benefits, capital conservation, and building business credit are some great benefits of financing. Be sure to weigh all of the pros and cons of financing and paying cash when looking at your next business purchase.
Blue Street Capital
Here at Blue Street Capital, we aim to provide you with the most up-to-date information on the financing industry so that you can become an educated buyer. Should you have any questions about this article, or any other information related to the equipment financing industry, please feel free to reach out to us using the contact form below. You may also give us a call at 714-316-1180.