When a business is acquiring a capital expenditure, the purchase always includes making decisions regarding cash flow and budgets.
Regardless of the size of the company, cash flow is the life line of business. Even for companies with large cash reserves, financing equipment acquisitions makes business sense by corresponding cost to benefit. Cash flow becomes anticipated and justifiable. Tying up working capital and lines of credit is not tolerable for the typical budget. Smart businesses pay for the equipment as they use it over the finance term and keep working capital liquid to fund investments and growth.