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.  

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