For most businesses in India, buying a golf cart through financing is not very common, but it can make sense in certain situations.
If your business has strong cash flow and can afford to pay upfront, that is always the better option. You avoid interest costs and own the asset outright from day one.
However, if your business needs to preserve working capital, for example, a resort that wants to buy a fleet of golf carts without tying up a large amount of cash then a business loan or equipment loan is a practical choice. The interest you pay on the loan can also be claimed as a business expense, which reduces your tax burden.
The key things to keep in mind are:
- Golf cart dealers and manufacturers in India do not offer EMI, so you will have to arrange financing yourself through a bank or NBFC
- Business loans and equipment loans are your best options
- Avoid high interest rate loans for a depreciating asset, as the total cost can add up significantly
So in short, if you have the funds, pay cash. If you need to manage cash flow, a business loan is a reasonable and tax-friendly route.