I work for a company that invests in capital items with long life....30 years, 50 years etc. What are the pros and cons of using debt to finance part of these capital purchases vs. cash (raising rates)? I know one reason is that current customers should not have to pay for equipment that could outlive them. But is there an actual financial "savings" or economics reason to borrow rather than pay cash.
2006-12-14 07:25:39 · 3 answers · asked by Wolfithius 4 in Business & Finance ➔ Other - Business & Finance
It is so easy to,
borrow, borrow, borrow
just like there is no tomorrow...
Yet never ever forget.. many good governments, corporations, and households have been destroyed by massive un-repayable debt.
Debt can be a good business tool if used wisely.
2006-12-17 12:26:23 · answer #1 · answered by Anonymous · 0⤊ 0⤋
When interest is lower it is often to your advantage to move debt if you have any to a lower fixed account that net result is less interest and more money to service the existing debt and or buy other assets.
2006-12-14 15:39:00 · answer #2 · answered by Anonymous · 0⤊ 0⤋
Tax benefits or lack of
2006-12-14 15:32:51 · answer #3 · answered by parsonsel 6 · 0⤊ 0⤋