When a company decides to finance equipment instead of buying it outright, understanding the true cost becomes essential. On the surface, the equipment financing costs might appear straightforward — a monthly payment, an interest rate, and a loan term — but the real picture often includes other variables that can dramatically influence the total cost of ownership. The decision between paying cash or using an equipment loan or lease impacts more than just your budget today; it also affects your cash flow, future borrowing power, and potential tax benefits. Business owners often underestimate how fees, interest costs, and even…
