Vehicles, kitchen equipment, heavy machinery, and other business assets often come with a hefty price tag, which can stand as a barrier between entrepreneurs and operating their businesses at the highest capacity. Fortunately, equipment financing is a way around this hurdle, as you can break down the sizable payment into more manageable weekly or monthly payments.

You’ll end up paying more than the cost of the asset because of the interest rate, but you shouldn’t necessarily get caught up in the cost of capital. Instead, you should focus on the opportunity that the financing projects. Will the equipment you’re looking to purchase increase your revenue, productivity, or efficiency enough to offset the cost of your financing? If so, then it’s worthwhile to consider financing equipment to support your growth.

Once you’ve decided on the asset you’re going to purchase, you can start to search for lenders and compare their rates, terms, and conditions. Each lender is different, and the offers you receive may vary wildly depending on your business’s financial documentation, time in business, and creditworthiness. For example, one lender might view your organization as inherently risky because of an abridged time in business and decline your application, whereas another might not value that requirement as highly as the other and offer you favorable terms. 

The only way to secure the best equipment financing rate is to shop around and compare your offers, but this will require time and effort on your part. If you want to streamline your search for equipment financing in California, National Business Capital’s 75+ lender marketplace shortens the process from weeks or months to hours, all while our expert Business Finance Advisors leverage their years of experience to help you select the best option.

You can qualify for equipment financing in California in a few different ways.

• You have a 650+ credit score
• You have at least 6 months in business and generate more than $500,000 in gross annual sales

Your credit score is most important in determining your eligibility for equipment financing, but it’s not the end of the road if your FICO score is below 650. Fortunately, you can also qualify for equipment financing with $500,000+ in annual revenue and more than 6 months in business. The flexibility of the eligibility requirements allows a wider range of entrepreneurs to secure the equipment they need to stay competitive and win business, even if they haven’t operated as long as the businesses down the block.

You can secure equipment financing in California through a variety of lenders, including banks, credit unions, non-bank lenders, and marketplaces. Banks and credit unions tend to offer more favorable terms on average, but their approval rates are notoriously low. You’ll most likely need a high credit score, a lengthy time in business, and substantial annual revenue in order to reach an approval with one of these lending institutions. 

Non-bank lenders, on the other hand, are the opposite. They have less intensive eligibility requirements compared to bank lenders, but they will offer higher interest rates to offset their risk. There isn’t necessarily a “best option”; The benefit of each offer will depend on the terms you’re approved for and the financial background of your business. 

Marketplaces encompass both types of lenders into one centralized platform, allowing you to apply with more than one with one application. The emergence of these organizations has increased the accessibility of capital for entrepreneurs across the country and, more importantly, shortened the process considerably.

Most industries rely on specialized equipment to perform their occupational tasks, and there isn’t always a way around using it. Businesses that have the latest equipment often see higher productivity, efficiency, and revenue because of their use of the asset. Those without the equipment may struggle to keep up with their competition, which often limits their ceiling and makes it difficult for them to grow.

Whether you own a restaurant, a transportation company, or work in the construction industry, Equipment financing removes the price barrier between entrepreneurs and the full potential of their businesses. California entrepreneurs can stay competitive in their industry by breaking apart sizable purchases into more manageable payments over time. Basically, it’s a strategic move for the future of your business, with enormous upside if you manage your finances correctly.

1. Increased Liquidity

Shelling out thousands of dollars to afford equipment can put your business in a financially unstable position. With equipment financing, you can secure the assets you need in the short term and manage the payments over time. The cost is easier on your cash flow, which allows for more liquidity as you pay off the financed asset.

2. Enhanced Productivity

Equipment financing makes it easier to afford the assets you need to increase your productivity and efficiency. Without the price tag standing in your way, you can secure the equipment that will allow you to cultivate sustainable growth in your operation.

3. Improved Forecasting

Equipment financing payments stay static over time, meaning you’ll never have to guess what your next payment will be. Most notably, this benefit allows you to forecast for the future of your business without having to worry about what your expenses will look like in a few months.

4. Tax Advantages

While the principal of your loan isn’t tax deductible, you can deduct the money you pay toward interest in your annual tax return. You may also qualify for other tax deductions, like Section 179, so make sure to speak with your tax advisor to ensure you’re saving as much as you can.

5. Lender, Vendor, and Type of Equipment Flexibility

You can finance almost any piece of business equipment with National; You aren’t limited by the lender, equipment vendor, or the type of equipment you’re seeking to purchase. Some banks and credit unions will only finance certain types of equipment or avoid financing specific industries entirely, but NBC’s 75+ lender marketplace breaks down the barriers to growth for entrepreneurs across the country.

Set your plans into motion today, so you can start growing tomorrow. Our award-winning team can help you streamline your search for equipment financing in California—in hours, not weeks or months.

Better Terms. Faster Funding. Easier Process.

Financing equipment in California could help you get a leg up on your competition. You won’t have to sacrifice your cash flow for increased efficiency, nor will you have to struggle to find a way to come up with the capital to afford the purchase in the first place. Instead, you’re able to break down the payment into a more manageable schedule, allowing you to operate at your highest capacity and prioritize other areas of growth.

Searching for equipment financing in California is time-consuming. Most business owners won’t have a spare moment to conduct in-depth research about a lender, their reputation, and the offers they receive. Growth can’t wait, and neither can challenges, so we’ve made it easy for you to secure best-fit financing solutions that align with your goals. 

Our 75+ lender marketplace shortens the notoriously long business financing process from months to hours, giving you the opportunity to set your plans into motion immediately. From our expert Business Finance Advisors to the detail-oriented production team, we’re a finely tuned time-saving machine that can help your growth move at the speed of your business, not your bank.

With over $2 billion secured, 2,000+ 5-star reviews on Trustpilot, and a dedication to “Driving Growth for All,” you can trust National’s award-winning to help you cultivate sustainable growth in your business, whether you’ve operated for one year or 25. Complete our digital application to get started.