EducationTips

What are the pros and cons of using the maximum loan term length when equipment financing?

The pros of using the maximum term are a lower monthly payment, and a potentially longer sustained tax benefit. That is if you elect to sign an operating lease that allows your business to write off the payments each year.

The cons would be a larger overall payout as the time value of money (TVM) shows that the longer you finance an asset, the more you pay back.

—Beacon Funding

Jeff Mansfield

Jeff Mansfield is a senior financing consultant at Beacon Funding, an equipment financing company catering to small businesses in the decorated apparel industry. He strives to use his 15 years of financing experience to help business owners successfully expand through equipment financing. Find out more and apply for financing at www.beaconfunding.com. Reach Jeff directly at jmansfield@beaconfunding.com. 

View all articles by Jeff Mansfield  

Related Articles

Back to top button