Topic- Should you finance or pay cash?

Malik Mullino

Does this question strike you whenever you think of buying any assets? Well, it is one of the basic factors that every 90 of 100 people thinks of before making their final payment.

Let’s decide which alternative is the better option!

The most common way of buying expensive commodities is through financing. Funding is made available to those who don’t have enough funds to make a purchase but wish to do so. Financing is the process of taking a loan to buy something. It is also purchasing with an initial amount and to pay the whole amount in specific installments with an additional interest charge. A set of documents are required by the individual to qualify for the finance. Well, why wait for the product that you are dreaming of, because with the funding you can buy every necessity that you wish for with ease.

There is a long list of advantages that the option of financing offers. Well, let’s explore some in detail –

  • Interest rate – Financing is beneficial when the interest rate of your loan is appreciable. Also, you can play smartly by investing this amount and earning more than you pay for the asset. It is useful to finance than to pay cash in this case.
  • Funds – The most important factor holding the result of this finance or cash debate is money. Most people go for cash payments if they have enough funds but the individuals who lack money would have to go for the finance option. Finance is advantageous for such buyers who wish to buy the asset but don’t have enough funds for it.
  • Earning – It’s better to finance a commodity if you can earn from it. Likewise, most cab drivers opt for buying a car at finance because they lack the money to purchase it by cash. Now they can earn through this car by being cab drivers and not only pay the instalments but also earn from it. Industry machines, setting up a new company and the stock shares are some of the finest examples where the finance can set up and earn.

Advantages look beautiful, but on the same hand, the disadvantages can never be ignored. Let’s learn about the disadvantages of financing in brief –

  • Debt – Financing can lead you to a debt trap. The biggest consequence of financing is this only. Determine the financial risk you can handle and finance accordingly.
  • Qualifying – there are certain criteria that the loanee has to fulfil to approve for the finance or loan. Also, the individual has to submit all his concerned documents to the authority. Failing this may lead to the cancellation of his finance request.

Well, every option has its amazing pros and cons, where the art of applying makes it unique and efficient. However, the mindset of paying cash for everything keeps you safe from overspending on items that you wouldn’t normally buy. Paying cash is also making you aware of what you are paying for. Hence, it might also save you from unnecessary spending and thus can promise you to save your well-earned money.

Apart from that, there are numerous other advantages that the idea of paying cash offers to their users –

The advantages of paying cash includes –

  • Cheaper route – Financing comes at the expense of the increased price of the good. Hereby it is a cheaper route where the buyer doesn’t have to pay interest charges.
  • Monthly expenses – Your income and your expenses won’t get affected by the cash payment. Make yourself safe from dealing with the monthly instalments or EMIs.
  • Discounts – Cash payments usually enjoy huge discounts from the company and brands. Also, the buyer can negotiate and bargain for a better price. On the other hand, financers are not usually given this opportunity.
  • Stress-free – You can derive pleasure in your entity without having the burden to pay. No risk means no anxiety, no depression and no other psychological issues.

Disadvantages of paying cash –

  • Savings – Paying cash might deplete your savings. It evacuates your reserves as a whole sum amount is withdrawn at a single time.
  • Choice – The amount of money is a limiting factor deciding the choices available for buying.

Choosing the best without compromising the future is an ideal decision to make. Either it is funds or cash, the decision of choosing the best depends completely upon your needs, where the experienceof Malik Mullino(founder of can help you learn the importance of both. He worked hard, earned well, fulfilled his dreams, and thus can be known as the best person to take help from; he fulfilled his dream without affecting his pocket. Grab the best option that suits your future, pocket and necessities.

Trust me and think carefully before jumping to any conclusion because your single decision is going to play a big role in your life. Thus, educate yourself properly about the choices, their pros and cons and then determine which way is the best for you.

You decide your route because, in the end, your decision is going to make your future!

SEO Expert