Another way to look at it if the work does not pan out the equipment gets repo'd. Their credit score goes down the drain. So the next time they want a loan instead of getting a loan at 5% they will be offered loans at 19% because of their bad credit history.
If they bought that machine cash and the job went bad that machine would sit in their yard until they got more jobs as the one they lost. They could tell the customer we have the equipment and can start tomorrow to close the deal.
Or they could continue paying the note from the cash reserve they still had while they actively search for more work or sell the equipment.
It all boils down to what kind of business person you are, how you protect yourself and your business, how you manage risk and what risks you are willing to take.
It's kinda like bungee jumping. Some will have no problem and trust the bungee cord won't break. Others will never want take the risk. But you can't say that everyone that bungee jumps will die so no one should do it.