Refinance equipment loan to improve cash flow in California
You already paid for the iron. Now let it pay you back. A cash-out refinance in California turns paid-off heavy equipment into working capital at up to 60% LTV, with one fixed monthly payment for 36 months instead of daily debits.
Want the national overview first? Our equipment cash-out refinance program page covers every detail; this page covers it for owners in California.
The program at a glance (subject to approval)
Equipment Dealers & VendorsOffer Financing On the SpotFree Vendor Package: program guide, credit guidelines & customer credit app. Close more sales, earn referral fees.Download Free →- Up to 60% of the equipment’s orderly liquidation value (heavier, higher-value machines get the higher advance)
- $10,000 to $750,000 per deal
- 36-month term, fixed monthly payments, $0 down
- Rates starting at 9.9% for qualified files
- Heavy equipment (yellow iron), plus farm and forestry machines with enough value, 15 years old or newer
- 700+ FICO, clean PayNet, 3+ years in business; soft inquiry to apply
How much cash is in your iron
The advance is up to 60% of orderly liquidation value, the price the machines would bring in a planned sale. Here is what that looks like in dollars.
Equipment value to cash
| Orderly liquidation value | Up to 60% LTV | Sample payment, 36 months at 9.9% |
|---|---|---|
| $50,000 | $30,000 | about $967 |
| $150,000 | $90,000 | about $2,900 |
| $400,000 | $240,000 | about $7,733 |
| $800,000 | $480,000 | about $15,466 |
| $1,250,000 | $750,000 (program max) | about $24,165 |
Illustration only. Actual advance depends on appraisal; rate and payment depend on approval.
Cash-out refinance vs. sale-leaseback vs. MCA
Three ways to turn equipment into cash, side by side.
Compare your options
| Cash-out refinance | Sale-leaseback | Merchant cash advance | |
|---|---|---|---|
| The equipment | Secures the deal | You sell it and lease it back | Not used |
| Payments | Fixed monthly, 36 months | Fixed monthly lease | Daily or weekly debits |
| Cost | From 9.9% for qualified files | Usually higher | Highest |
| Best for | Established operators with equity in heavy iron | Equipment outside the refi guidelines | Short-term needs, weaker files |
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What owners in California use the cash for
Once funded, the cash is yours to run the business.
Payroll and materials
Cover the gap between starting a job and getting paid on it.
Bonding and bids
Show liquidity for bonding capacity and bigger contracts.
Paying off expensive debt
Replace daily-debit advances with one fixed monthly payment.
Another machine
Use the cash as a down payment or buy used iron outright.
Seasonal slowdowns
Carry the business through winter or the rainy season.
Taxes and repairs
Handle a tax bill or a major rebuild without draining the account.
How the deal is structured
Every refinance gets papered to fit the equipment and the file. Depending on the machines and your credit, the lender writes it one of three ways. All three end the same way for you: cash or a payoff now, one fixed monthly payment for 36 months.
Lease
The lender takes ownership of the units and leases them back to you with a fixed monthly payment. Common when the equipment is free and clear.
Equipment finance agreement (EFA)
You keep ownership and the lender holds a security interest in the specific units. Simple, fixed payments, no balloon.
Term loan secured by the assets
A loan collateralized by the specific machines: the lender is added as lienholder on titled units, or files a new UCC on the specific serial numbers for non-titled iron. Not a blanket lien on the whole business.
Prepayment: whether you can pay it off early, and what that costs, depends on which agreement your deal is written on. Ask for it in writing before you sign.
Put simply, this is a monthly payment working capital cash out refi on heavy equipment: the advance is capped at 60% LTV, and you pay it back in fixed monthly installments, not daily or weekly debits.
Who qualifies in California
This program is built for established operators, and we say so up front so nobody wastes a week.
Business and credit
700+ personal FICO, a clean PayNet (business equipment payment) history, and at least 3 years in business. Soft inquiry when you apply.
Equipment
Heavy equipment (yellow iron) 15 years old or newer, plus farm and forestry machines when there is enough value in the whole package. Value is based on orderly liquidation value, not retail.
Deal size
$10,000 to $750,000. Several machines can be combined into one deal to reach the size you need.
What you get
Up to 60% LTV, $0 down, 36 months fixed, rates from 9.9% for qualified files. All subject to approval.
Want the full program page? See our equipment cash-out refinance program, or compare it with heavy equipment financing for machines you are buying.
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Not a fit for this program? Here is what works instead
No single program fits every business. If your equipment or your file falls outside the refinance guidelines, there is usually another way to get to the cash. Here is how we route it.
Other equipment and situations
| If you have… | Why it is outside this program | What we do instead |
|---|---|---|
| Trucks, trailers, fleet vehicles or an owner-operator rig | The refinance lender takes heavy equipment only | Commercial truck financing for vocational trucks, or a sale-leaseback |
| Medical, restaurant, POS, office or technology equipment | Soft and specialty equipment is not yellow iron | New or replacement equipment through equipment leasing: terms up to 60 months, most with a $1 buyout, low fixed payments that conserve cash, an inflation buster, and possible Section 179 deductions |
| CNC, manufacturing, industrial machinery, marine, aviation or oil and gas equipment | Outside the refinance lender’s collateral list | A sale-leaseback or working capital, reviewed case by case |
| Credit under 700, a startup, or under 3 years in business | The program requires 700+, clean PayNet and 3+ years | Bad credit equipment leasing or working capital, priced for the risk |
| A need for no-doc, same-day money | Refinance needs equipment details and a review | Working capital can move faster. Honestly, approved today usually means funded the next business day, not same day |
| Equipment older than 15 years | Past the age limit | A sale-leaseback or working capital |
| Interest in an SBA or USDA refinance | A different, government-backed product | SBA loans: longer terms and lower rates, but slower and paperwork-heavy |
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See what your iron is worth in California
Send us the equipment list and we will tell you straight what it can do. Soft inquiry, no obligation.
Refinance equipment loan to improve cash flow in California: FAQ
How does a cash-out refinance on paid-off equipment work?
It is a loan, lease or equipment finance agreement secured by heavy equipment you already own outright. The lender advances up to 60% of its orderly liquidation value as cash, repaid in fixed monthly payments.
How much cash can I get from paid-off equipment in California?
Up to 60% of orderly liquidation value, from $10,000 to $750,000. Heavier, more valuable machines get the higher advance.
Do I keep using the equipment?
Yes. The machines stay on your jobs; the lender just holds a lien or title interest on the specific units until the deal is paid.
Is this better than a merchant cash advance?
For established operators, usually yes: fixed monthly payments over 36 months and rates from 9.9% for qualified files, compared with daily debits and factor rates.
Who qualifies?
700+ FICO, clean PayNet, 3+ years in business, and heavy equipment 15 years old or newer. Applying is a soft inquiry.
Is there a prepayment penalty?
It depends on which agreement the deal is written on (lease, EFA or term loan). Ask for the prepayment terms in writing before you sign.