Only you know what is best for your situation.
Ive done both. Financed the world and paid cash. Ive written extensive threads here about how things can change in an instant and about how that "only $100 a month" payment can be deceiving.
Credit isnt bad in itself and can be a useful tool. Human nature however can trick you.
Everything I bought "dramatically increased productivity" and was a drop in the bucket to make the payment. But one day that can seemingly change overnight.
Im back to running a large fast growing operation and I struggle with this decision everyday. There are so many things I want/need that could benefit my business.
Just personally though, Ive made a decision to run debt free. It just feels better at night. It feels better knowing if work stopped tomorrow, I park everything and nobody can take it and I dont have any checks to write for it.
I find im a much better shopper. Sure, the sting of a one time purchase hurts. But it feels good too. You write a big check one time. But then all the money that comes in after that is yours.
A few weeks ago i was badly in need of another line striper. (Im in the commercial sealcoating business) I needed one baaad. I almost went and bought a new one for $6000. Still would have paid cash but could have financed it at like $120 a month. Which is nothing.
Instead I did some hunting on the internet. And bought a package deal of 3 used but perfect running stripers, upgraded models from what i was going to buy new, plus a pusher machine and a bunch of other stuff.....$4,500
A freaking steal. Total of 4 pieces of equipment I could sell each for $3000 right now.
A month before that I needed another push blower. Almost bought a new one for $1300.
Looked on craigslist and found 3 for sale from the same guy. 3 little wonders running perfect maybe 4 years old and 1 almost new billygoat, all with hondas. All running perfect. Using my "pawn stars" teachings...lol I loaded all 3 of them up for $450.
I could sell them each for $450
This is not so much about credit in my mind. Its about smart business and patience.
Im very impatient. Ive been known in the past to have a machine break and buy a new one on the spot because the part was going to take a day.
But in my case. Look how much better off I am.
I wanted one striper and one blower. I could be making payments on $7,300 in equipment right now. Not a lot of money in payments but still.
Instead, I paid less than 5 grand and now have 3 stripers and 3 blowers.
Thats a hell of a lot more productivity