Which of the following is a medium-term finance option for a business?

Leasing is considered a medium-term finance option for a business because it allows a company to use an asset (like equipment or property) without having to make a large upfront payment to purchase it outright. Instead, the business pays rent or a series of payments over time, typically covering a period ranging from one to five years. This arrangement enables businesses to conserve cash flow while still benefiting from the use of the asset, which can facilitate operations and potentially increase productivity during that timeframe.

Leasing is advantageous as it also sometimes includes maintenance and support for the asset, reducing the burden of unexpected costs. In contrast, grants are usually one-time funds without repayment obligations, debentures represent long-term funding through debt securities, and equity capital implies financing through ownership stakes in the company, which typically represents a long-term commitment. Hence, leasing fits the criteria of medium-term financing due to its duration and the payment structure associated with it.