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Question:

what type of finance should be used to finance the purchase of heavy machinery?

would you be able to give reasons

Answer:

the general consensus is that the type of financing should match the lifespan of whatever you're buying. so for heavy machinery, these are typically long-term assets. as such, you want to use long-term debt (such as a long-term bank loan). ideally, the best financing is cash (you buy it outright). other alternatives would be to give the seller a corporate bond which promises them payments, etc. loan agreements are another option.

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