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Old 08-04-09
McAdam Siemon McAdam Siemon is offline
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Default Re: to Loan or pay cash?

Hi Kathy,

This is a cashflow issue for your business. I would suggets you need to look at your cashflow for the next 12 months and ascertain if you can afford the inital outlay in cash or if you need to finance it.

My preference with any buisness assets is to finance it as it is more effective cashflow wise. All deductions will be the same either way if you buy it outright or finance it.

Dont tie up all your cash in your non-current assets like plant and furniture, they are just necesities not essentially income producing (generally).

Good Luck Kathy

Sam
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Sam Hodgetts CPA
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McAdam Siemon Pty Ltd
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