Funding new business assets?
5 IMPORTANT QUESTIONS TO ASK when considering how to fund the acquisition of business assets:
What is the asset being used for?
What is the asset’s useful life? Both the real expected life and the useful life as determined by the IRD for depreciation purposes?
What is the cash position of the business?
What funding options exist, and which is most appropriate for the asset type taking into account the intended use and lifecycle?
How can the funding be structured to maximise cash flow to the business?
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