Use of Loan Money
Taking a loan to finance the start of Eli Tables itself is not contemplated.
At this stage the project is too speculative.
Financing the considerable start-up costs involved in
production/marketing/distribution is a determination the
partnering/licensing/purchasing firm will need to make.
Production Start-Up costs are considerable, in the range of $1M-$3M. Tooling is
very expensive. Over the life of the tooling it represents only fractions of a penny per part, but it
is a large sum up front.
Research and Development will be necessary to transform this patent into a product.
This research is likely to cost between $30K-$60K in materials, computer time,
human resources etc.
It must resolve:
- Exactly what mix of polymeric material will yield the desired performance for
the least material cost.
- How far can the interstitial portions of each part be reduced without affecting
performance (for reason above)
- Which, of several competing production processes, is the best fit.
And answer the question:
- Does this iteration fall within the price constraints outlined above
Only then can a rational decision be made about whether to venture the much more
considerable production start-up costs.