Sometimes. Most businesses have a working Line of Credit (LOC) with their bank to help with purchasing materials for shops or to help in the time delay on collecting their receivables. Once the Line of Credit is in place, it is very easy to just draw on the LOC and write checks for the purchase of the equipment. Lines of Credit typically carry a lower interest rate because the bank has a blanket lien on all of the company’s assets (Account Receivables, Inventory, Cash, etc.). Using the LOC can also give you the option of paying down the loan when your cash reserves increase.