Are you an auto repair shop owner who has struggled with obtaining financing?
Automotive repair is a massive industry with over $70 billion dollars in annual revenues!
With those types of numbers, you’d think banks would be tripping over themselves to lend out money but if you’ve tried to get a loan, you know how hard it is to get approved.
Money is hard to come by when you need it most - while the costs of running a repair shop keep going up.
Here are the most common reasons a shop owner seeks financing:
- Equipment Purchase & Repair
- Payroll
- Parts & Inventory
- Monthly Overhead
- Expansion
Fortunately, you have multiple financing options – let’s take a look at them.
Here are the Top 4 Ways to get financing for your auto repair business ranked in order from fastest and easiest to qualify for to the toughest and slowest…
Top 4 Auto Repair Shop Business Funding Options
Working Capital Advance
Need funds tomorrow?
If so, a Working Capital Advance is going to be your only option. Approvals take hours, not days or weeks and funds are often sent the next day.
The money is not cheap, however, they are easy to qualify for and can be used to keep your business afloat. When used wisely they can be used as a bridge as you prepare for more traditional funding.
Requirements: 3 months in business. 500 personal FICO. Minimum monthly revenue of $5K, however, $10K or more is preferred.
Approvals Amounts from $5K to $500K
Equipment Financing
No matter what type of repair shop you own, you will have equipment costs. These expenses can be massive…
However, an equipment loan or lease can help you minimize the cash outlay for critical equipment.
Requirements: Minimum FICO 450. Startups, OK. (Credit dependent) Downpayments 0 – 30%.
Approval Amounts from $5K to $10M
Business Line of Credit
Lines of credit are great choices because you are only paying for the money you use. If you have a line of credit for $100K and only use $20K – your interest is only on the $20K in borrowed funds.
Requirements: Minimum FICO 550. 1-month TIB. Minimum $10K per month.
Approval Amounts from $5K to $750K
Term Loans
Term Loans are more traditional loans for auto repair shop owners with better rates and are great options for more established businesses. Funding can be relatively fast. Terms range from 12 to 36 months.
Requirements: Minimum FICO 600. 6 months time in business.
Approvals up to $1M
**SBA Loans and traditional Bank loans are available as options as well but not viable options when you need funding fast**
So there you have it – The Top 4 Ways to get financing for your automotive repair business.
Regardless of your niche in the industry, you have options…
Capital Funding Partners has access to the funds you need to grow your business.
If you have any questions or would like to get started getting FUNDED give us a call at 281-800-8873 or Book a Loan Consultation by Clicking HERE.
Ready to get the ball rolling today! fill out our easy pre-qualification application by clicking the APPLY NOW button below…