It’s not true that IT technology will never be paid by cash. His point is that liquidity is crucial to the longevity of any company. Expanding your business based on reinvested profits from business and your personal savings on its own, especially in the initial phases, is a bit far-fetched. For your company to expand, you’ll require capital outside.
Financing is better than using cash for the purchase of equipment. For example, it takes considerably longer to put aside money for the equipment you want than to make a deposit for financing. Saving money could lead to significant expenses if you wait.
Businesses often go under because insufficient funds. Your business’ success depends on maintaining liquidity, and having a reserve fund for emergencies. The need for a loan to create business credit is another reason to consider funding. While there are benefits presented by paying cash for IT equipment, the organization will need to be able to back the purchase, as well as be prepared to take on any risks that come with it. ix4ghrrlxq.