3 September, 2018
Does a low interest rate equate to positive cash flow?
Before going ahead with the provider who has the lowest rate consider the impact of the suggested term on your cash flow. A low rate on a loan with a short term, which suits the lender and is not aligned to the life of the asset may result in negative cash flow. Positive cash flow and profitability may be more achievable when the finance structure is aligned to the economic life of the asset and your intended use.
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