What financing model involves a customer making full payment at the time of purchase?

The financing model that involves a customer making full payment at the time of purchase is known as Capital Expenditure (CAPEX). In a CAPEX model, a company or customer purchases an asset outright, which means they make a significant upfront payment. This is typically associated with buying physical goods, such as equipment or technology, that have a long-term use and provide value over time.

One key characteristic of CAPEX is that the full cost of the asset is incurred immediately, which is reflected in the company's financial statements. The asset is then capitalized, meaning the cost is recorded as an asset on the balance sheet and depreciated over its useful life, which aligns with accounting principles.

This model is often preferred by organizations that want to own their assets outright and can afford the initial investment, allowing them to utilize the asset without ongoing payments or obligations that come with other financing options like leasing or subscriptions.