Short YouTube video by Mike Andes advising on whether to use cash or financing for business expenses. Andes emphasizes having a clear plan, systems, and knowing your numbers so you can predict returns; if you can confidently predict large returns (e.g., 50–100%+) from invested loan money, taking a loan can be justified.
How do you decide between paying cash or getting financed for anything Business? Great question. I don't think that is a bad thing if it's used correctly. And the biggest thing I have against people going into debt is they do not have a plan, they do not have a system, they do not know their numbers. How can you get your business to that point? We have a predictable outcome. I put a dollar into marketing, a dollar into new equipment, a dollar into hiring someone on the other side. I get a return on that money. The bottom line though, is if you can confidently predict you're going to make 50, 60, 80, 100% return on the money you get from that loan, then yeah, you should go get a loan.
