Used HVAC Equipment Financing for California Commercial Contractors

Where the work lands

In California, we usually see this product when a mechanical contractor is replacing failed rooftop units in a San Jose retail center, swapping condensers for a San Diego office buildout, or keeping a Central Valley warehouse cool through inland heat while California Title 24 and local permitting are part of the conversation. The buyer is often a working commercial HVAC shop, a refrigeration contractor, or a GC managing tenant improvements, and the deal size is usually big enough to matter but small enough that a full bank package feels heavy: a single used RTU, multiple split systems, air handlers, or a mixed truck-and-materials purchase.

California realities on the job

California changes the file because the state is not one market. Inland Empire heat, coastal corrosion, Sacramento dust, wildfire smoke, and the split between retrofit-heavy urban cores and new construction in the exurbs all push contractors toward equipment that can be installed fast and commissioned cleanly. Title 24, Part 6 and local permit review matter, especially when controls, economizers, duct sealing, or efficiency swaps are part of the scope. In practice, we fund a lot of used gear for rooftop replacements, energy upgrades, school work, restaurants, medical suites, and multifamily common areas where the schedule has to survive inspector timing.

How we structure it

With hvac equipment financing for commercial contractors, we usually structure the money as a secured equipment loan, a lease, or a revolving line if the contractor needs ongoing inventory and small emergency buys. For used equipment, our current range is $10K-$5M, with 8%-25% APR, credit starting around 580 FICO, and funding in 3-7 days when the file is clean. Stronger profiles at 650+ may qualify for zero-down. In California, proceeds are often used for the used condenser or RTU itself, but also for freight, rigging, recovery, disposal, start-up, controls, and the permit-related costs that sit around the equipment. A qualified financed unit can still line up with Section 179, and the current deduction limit is $1,220,000, so some buyers can expense part of the purchase in the same year. If the borrower can wait and wants longer amortization, SBA 7(a) can still be a fit, but it is slower: 30-90 days, usually 24 months in business, 640 FICO, and $100K+ in annual revenue, with loan sizes from $50K to $5M+.

What we ask for up front

For eligibility, we look for at least 6 months in business on the equipment-financing side, then we stress-test the file against California reality: contractor license status, job backlog, bank statements that show real collections, and equipment quotes that match the scope. Have the CSLB license info, a W-9, 3-6 months of business bank statements, recent P&L and balance sheet if you keep them current, the last one or two business tax returns, insurance certificates, and the vendor quote or proposal. If the job is in Los Angeles, Oakland, or a smaller city with its own permit desk, the permit packet or preliminary approval helps. If the plan is to buy used gear out of state and ship it into California, we also want the serials, condition notes, and any service records that prove the unit is worth financing. That is usually enough to move fast without pretending California is a generic market.