Paying Cash For Equipment

The most prudent way to manage precious capital is to match the equipment costs with its benefits. For example, you wouldn't pay for 5 years of cell phone service upfront, or prepay 3 years worth of electricity bills. Finance the purchase of the equipment, pay a low interest rate and take the capital that you have in the bank and invest in your core business making a return much higher than what your paying your finance company. The power of leverage.