Cash flow is defined as: the total amount of money being transferred into and out of a business, especially affecting liquidity. Projecting cash flow can be helpful to you when deciding whether to buy business equipment for cash or to finance it.
You don’t pay your employees for 5 years of work in advance, why pay for capital equipment in advance? Let the equipment make you money as you are paying for it.
The use of the equipment is going to make you more money than the cost of the lease. This allows you to be in the black from day one instead of paying cash and having to wait to be Cash Flow Positive.
Keep your cash on hand for business occurrences which are harder to finance, such as advertising, hiring bonuses, upgrades to the building, etc.