FAQ's
In business, cash is king. By paying cash for a fixed asset it puts a strain on cashflow. By financing your asset, you have more cash left in your business and more control over your finances. Afterall, the benefit of owning your asset is not instant, it's benefit comes in slowly, match this to your repayment period and an affordable monthly cost.
Putting large purchases on your overdraft means you have less cash (working capital) to pay for the expansion of your business, staff, advertising etc, none of this can be financed obviously.
Consider as well, whilst maybe when buying an asset, cash in the business is good, in a few months time, it may not be as good. Re financing an asset after the event is a very expensive alternative and a good deal harder to arrange.
