Cannabis Equipment Financing California — Extraction, Cultivation, Dispensary

Cannabis equipment is expensive. A single ethanol extraction system runs $80K to $400K. A commercial-grade LED lighting retrofit for a 5,000 sq ft flower room can hit $150K. Packaging automation for a manufacturer? $250K and up.

Almost no California cannabis operator has that kind of cash sitting around after paying 280E-inflated taxes and quarterly excise. And your bank still won't lend to you.

Cannabis equipment financing is one of the most accessible capital tools available to plant-touching California operators — because the equipment itself serves as collateral. This guide covers how it works, what qualifies, and what to expect.

Why Equipment Financing Is Easier to Get Than a Standard Loan

Traditional business loans are unsecured — the lender is taking a bet on your business. Equipment financing is secured by a specific piece of gear. If you default, the lender repossesses and re-sells the equipment.

That collateral changes the math. Lenders can approve operators with weaker credit, shorter operating history, or thinner cash flow because their downside is protected. In cannabis, where general credit is scarce, equipment financing is often the easiest capital to close.

What Cannabis Equipment We Finance

Cultivation. LED lighting (Fluence, Gavita, ThinkGrow), HPS/DE fixtures, HVAC (Anden, Quest, Surna), dehumidifiers, benching (Montel, Pipp Horticulture), irrigation and fertigation systems, environmental controllers, CO2 systems.

Extraction & Manufacturing. Ethanol extraction (Delta Separations, Capna), CO2 extraction (Apeks, Waters), hydrocarbon systems, rotovaps, short-path distillation, chromatography columns, filling and cartridge machines, packaging automation.

Dispensary. POS systems (Flowhub, Treez, Dutchie), security systems (cameras, access control, safes), display cases, ADA compliance build-outs, delivery vehicles.

Distribution. Cargo vans, cold-chain vehicles, GPS tracking, warehouse racking, forklifts, secure transport modifications.

Terms You Can Expect

Loan amounts: $25K – $5M per transaction
Term length: 24 – 72 months, matched to useful life of the equipment
Down payment: 10–20% typical; 0% down available on strong files
Rates: vary by credit profile, equipment type, and operator history — generally more competitive than working capital
Approval timeline: 3–10 business days
Funding: paid directly to the equipment vendor once documentation is signed

What You Need to Apply

✅ Active California DCC license (any type)
✅ Equipment quote or invoice from a legitimate vendor
✅ 3–6 months business bank statements
✅ Basic business documents (Articles, EIN, driver's license)
✅ Personal credit is reviewed but not typically a hard filter

Lease vs Finance — Which Structure Fits

Equipment Finance Agreement (EFA). You own the equipment on day one. You depreciate it and eventually pay off a small residual (often $1). Best when you want long-term ownership.

Operating Lease. You rent for a set term with a fair-market-value buyout at the end. Payments are usually lower, and the equipment stays off your balance sheet. Best when technology moves fast (extraction, some lighting) or you want flexibility.

Both structures work in cannabis. Which one wins for you depends on your tax situation and how long you plan to use the specific gear.

What to Do Next

If you have an equipment quote in hand or you're evaluating vendors, you can pre-qualify in 5 minutes without a hard credit pull. Bring the quote and last 3 months of bank statements — that's typically enough to structure an offer within 48 hours.

Cannabis Equipment Financing in California — Extraction, Cultivation & Dispensary Gear