If an owner is looking to take out a loan for equipment that will last approximately 8 years the ideal loan would be
A) mortgage.
B) trade credit.
C) asset-based.
D) term.

Question

Quizplus · Accepted Answer

A term loan would be the best choice for financing equipment that has a lifespan of approximately 8 years. Term loans offer a fixed repayment schedule over a set period of time, which helps the owner budget for future payments and plan for the equipment's eventual replacement. Additionally, the interest rate on a term loan is usually lower than that of other financing options, making it a cost-effective choice.

If an Owner Is Looking to Take Out a Loan