Issuing Equity is another smart option that can be used by the company. This involves issuing shares to investors at a price determined by the company and using them to raise finance for the equipment needed by the scientists
Lease is when the other company or financing organization buys the equipment and let our company use it against monthly charges known as rentals. The benefit of this option is that the company will not have to bear the entire cost of equipment upfront and in case the company does not need equipment in the future it won’t have to pay the rental and will not have to invest huge amount into buying the product.
Hire-Purchase is like a loan to the company. The difference here is that instead of lending you the money, the bank or other financial institution buys you an asset and charges a mark-up against this assets which is amortized by the monthly payments which includes payment of both principal and the mark-up. ...Show more