Differences between buying equipment outright and using structured finance?
Hey folks, wondering what the real differences are between shelling out cash upfront for business gear versus going with some kind of structured finance setup? Last year I almost drained my savings to buy a new van outright for deliveries, but then chickened out at the last minute because it felt like too big a hit on my emergency fund. Now I'm eyeing some machinery upgrades and still torn—does financing actually save headaches with cash flow, or end up costing more in the long run with interest and all that? Anyone got real experiences on tax perks or how it affects day-to-day operations?
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That van dilemma—been there myself with a forklift a couple years back. Ended up spreading the payments instead of paying cash, and it kept my working capital free for unexpected stuff like repairs on older kit. The big plus for me was getting the equipment https://beaujohnsonfinance.com.au/equipment/ in use right away without a massive upfront lump, plus some potential deductions on the repayments that my accountant sorted out. If you're looking into options, I checked out this page on equipment finance that breaks down things like chattel mortgages or hire purchase without the hard sell. Worked out better than I expected, especially since rates were decent and approval didn't take forever. Definitely preserved my sanity on cash flow!