Never Pay CASH for Equipment!

Chances are you don't have a bank account full of idle cash, just exploding with 0's - and ready to be spent willy nilly. BUT, even if you did (and I hope you do!) PLEASE don't pay cash for your equipment outright.

But, Crystal - why not?

Because any business expert will tell you, and I agree, that there is always an area of your business that needs to be IMPROVED. There is always a sector of your business that needs attention, where the money would be better spent. 

Because the future is unknown, what if next month is filled with curveballs and you need capital to solve the dilemma?

Because the second you pay for your piece of equipment - it has ALREADY depreciated. And that depreciation is your loss. Whereas with leasing the depreciation (of up to $125,000) is tax deductible.

If you are itching to spend your money and purchase the equipment outright, do so, but then LEASE it back to yourself.