Equipment loans vary in duration based on factors like equipment type and lender policies:
Short-term loans last 1 to 3 years, suitable for quickly profitable or shorter lifespan equipment like tech upgrades or software.
Medium-term loans run for 3 to 7 years, ideal for moderately durable equipment like vehicles or certain machinery.
Long-term loans exceed 7 years, fitting long-lifespan equipment such as heavy machinery or industrial tools.
Consider equipment lifespan, business cash flow, and equipment value when deciding on loan duration. Understanding loan terms helps businesses decide on asset acquisition.