Equipment with a short shelf life and equipment with a long one
Irvine is known for technology and semiconductor companies, and it is home to the University of California, Irvine, Concordia University, Irvine Valley College and campuses of the University of La Verne and Pepperdine. A city like that supports many smaller firms with specialized gear: contract manufacturers, test and lab services, 3D printing and prototyping shops, medical and dental practices, photo and video studios.
They face an important choice that a restaurant or trucking firm may not: some of their equipment becomes obsolete quickly, and some lasts decades. Financing the first as though it were the second is where owners get hurt.
Match the term to the life of the equipment
| Equipment | Typical life, in general terms | What to watch |
|---|---|---|
| Computers, servers, test rigs | Short; replaced as software demands rise | Do not finance for longer than you will use it |
| Prototyping and 3D printers | Short to medium; technology moves fast | Consider whether upgrades will be needed soon |
| Precision machinery | Long; maintained and recalibrated | Calibration and service costs add to the real total |
| Dental and medical equipment | Medium to long | Downtime stops revenue immediately |
| Photo and video gear | Medium | Rental income can offset cost |
The general rule: the repayment period should not outlast the equipment's useful life. These are guidelines, not our terms.
The all-in cost of an equipment purchase
- The purchase price.
- Installation, power, cooling, software licenses and training.
- Service contracts and calibration.
- Insurance.
- The cost of running the old equipment in the meantime, if the swap takes time.
For illustration only, a $90,000 test instrument for an Irvine lab-services firm can easily need another $15,000 for installation, software and service in its first year. If you fund only the sticker price, the extra comes out of working cash. It helps to include those costs when you describe the request.
A short comparison before you commit
If an item will be obsolete in three years, think carefully before choosing a long repayment period. If a unit is a standard model with a strong resale market, ownership can make sense. If a piece of equipment is needed only for one project, ask whether renting would cost less. And if the item is costly but the revenue it brings is unclear, a term structure or a line of credit may give more flexibility than tying the money to one asset.
Applying
We fund $25,000 to $5,000,000, with funding in as little as 24 hours after approval. We consider FICO 500+, ask for about three months of business bank statements and do not require tax returns. The five-minute application uses a soft pull, and sole proprietors can apply. Apply and describe what you are buying.
For operating cash, see a line of credit or working capital. For area context, see Orange County.