Identify the Sources of Finance Available To Living Wood
Living Wood is in a quagmire about how to source some funding for the purchase of two machines that will enhance the performance of the firm. The firm may source these funds from borrowing loans from commercial banks. This will require them to offer some sort of security for the money loaned out to them. The firm may use the assets of the firm as security, although this is potentially risky.
Alternatively, the firm may enter into a lease agreement with the sellers of these two machines such that the firm will just be making monthly payments to the ...