Three questions every purchase should answer
- What new revenue or saved cost does this create each month? Be specific: extra jobs, shorter turnaround, less waste.
- Who will pay for that work? A named customer is better than a hope.
- What happens if it sits idle? Think in months, because some trades have slow seasons.
San Diego's economy rests on defense and military activity, tourism, international trade, research and manufacturing, according to Wikipedia, and its deepwater port includes the only major submarine and shipbuilding yards on the West Coast. Machines that serve those industries are expensive, specialized and often tied to a particular contract.
Purchases by trade, with different tests
| Trade | Typical purchase | Key test |
|---|---|---|
| Machine and fabrication shops | CNC machines, welders, inspection tools | Is there signed work that needs the capacity? |
| Restaurants and cafes | Refrigeration, ovens, espresso machines | Does it hold up in the busiest months? |
| Nurseries and growers | Irrigation, trucks, greenhouse systems | Does it lift output or cut labor? See San Diego nurseries |
| Labs and research service firms | Instruments and testing rigs | Do client projects fill the schedule? |
| Port and logistics operators | Handling gear and vehicles; see ports and logistics | How steady is the throughput? |
A payback sketch, for illustration
A fabrication shop considers a $95,000 machine. The owner has two customers that have asked for more parts than the shop can currently make, worth an estimated $11,000 a month of additional margin. The monthly payment would be about $4,200. The machine pays for itself with a margin of around $6,800 a month, but only if both customers follow through. If just one does, the margin halves. Round numbers to show the arithmetic, not our terms.
An owner who tests the one-customer case before buying avoids an unpleasant surprise later.
Mistakes that make equipment loans heavy
- Buying for peak capacity when average demand would be served by a smaller machine.
- Ignoring installation, training, power or ventilation work that has to happen before the equipment earns.
- Forgetting the maintenance contract, which can add a real monthly cost.
- Sizing the payment against the best month, not the slowest.
A short list of these costs, written before you apply, makes the request easier to size and the payment easier to live with.
What we look at
We fund $25,000 to $5,000,000, with funding in as little as 24 hours once approved. We consider FICO scores of 500 and up, ask for about three months of business bank statements and do not require tax returns. The application takes about five minutes and uses a soft credit pull. Sole proprietors can apply. If the real constraint is cash rather than a machine, compare working capital. For a larger project, see term loans. Owners in Vista, San Marcos, La Mesa and Escondido can apply from anywhere in San Diego County.