I have an opportunity to purchased a well maintained car coming off lease at year end. Should I pay cash $14k or search for a used car loan?
A. Any decision regarding paying cash versus financing boils down to what are your alternative uses for the cash. If your cash will be sitting in a savings or money market account earning 2-5% interest, then it makes no sense to finance at 8-10%. On the other hand if using this cash will require you to borrow other money for your business at 12% then finance the auto and save the cash for your other purposes. Back to top Equipment Q. I am just starting out, and have $12,000 budgeted for furniture and equipment. What should I do to make sure that I am getting the most for my money? A. There are a couple of factors to consider. First does the furniture and equipment have to be new? Second what is your financing structure? The first factor is based on how your customers will react if you have used furniture rather than new. In most cases this should not be significant, but it will be a factor in high profile professions where image is important to customer satisfaction. Otherwise the simp
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