What is Pay-As-You-Go financing?
This refers to capital projects or goods/services of large dollar cost. This type of financing simply means that the full brunt of the expenditure is absorbed at a single point in time versus being spread out over multiple years. This type of action requires a healthy bottom line both to absorb the project cost and to maintain a sufficient working capital for basic operational costs. One of the benefits to this method is debt service interest savings since the project is fully paid for upfront.
