Most people pay cash because they have it.
There it is , sitting there in the bank just waiting to be spent on something productive like some new equipment. Besides, if you pay cash for that new equipment, you don't have to mess with those pesky monthly payments. Additionally, since I own the equipment, I can depreciate it which is a great write-off that helps lower my taxes. It sure sounds like paying cash for that new equipment is an excellent way to go. Many times an example makes the point best, so let's use an example to make a very important point here.