Auto repair small business loans

Auto industry financing options are some of the most flexible types of business loans available.  Because repair shops, body shops, service centers, and towing companies have equipment to use as collateral and service is always in demand, getting approved can be simpler than with other industries. People and companies need reliable transportation, so your business is vital, which also means your industry can be seen as lower risk in some cases.

This is why we put together a network of financial providers that specialize in giving business loans to auto repair and maintenance companies. The financing can be used to purchase new or used equipment, hire staff or buy out a competitor, and stock up on supplies. Click here and enter some information about your company. Our platform will pair you with the partners that are best suited to your needs. And if you like one, you can apply on their site in minutes. Get the funding your auto service business needs fast and hassle-free with our partners.

When lifts are stuck, inventory has been exhausted, or you have an unexpected gap in cash flow, it helps to know the best types of business loans for auto service and repair shops.  

By already knowing the right type of financing, you can speed up the process and make sure you get loan terms that match your situation. Here are a few of the many options you have available through our partners, so that you can see which works best for your current needs.

Short-term business loan
A short-term business loan is the perfect funding solution for auto repair and body shops that need to cover temporary gaps in cash flow, especially if you know you’ll be able to pay the funding back quickly. These can be used for stocking oils or paints, repairing an air compressor or lift, and even hiring a temp when a current team member is unavailable. The payback period is normally under 18 months,2 letting you clear the debt from your credit score more quickly when compared to a traditional business loan. 

Working capital loan
If your maintenance or body shop business is running short on cash reserves to manage daily operating expenses, you can rely on a working capital loan to cover utility bills, payroll, inventory, and other operational business costs. The funding is designed to keep operations running, so it could also make sense for hiring a repair person but not necessarily for buying or leasing new equipment. 

Equipment financing
If your auto repair business needs to purchase new or used equipment including car lifts, floor jacks, diagnostic machines, and other mechanic tools, an equipment financing loan can help you cover the cost. The cost of equipment is expensive, so the payback period is generally made to be longer than that of a short-term loan. This reduces the amount of your monthly payment and gives you better cash flow. Best of all, you can typically use the equipment as collateral, which helps you secure financing more easily. 

Business bridge loans
When you find a new location, have a competitor looking to sell, or see an expensive piece of equipment going up for auction, you need to get a bid in fast. Business bridge loans are quick solutions. Business owners usually use them to bridge immediate financial gaps while longer-term financing is in the process of coming through.  

SBA loans
SBA loans are a perfect option if you need up to $5,000,000 in financing for your auto repair shop and you’re not in a rush. Unlike other types of business loans, these can take between 1 and 3 months for an approval, so they are not ideal for immediate needs. The benefit is the flexibility of use, capped interest rates, and longer repayment terms to spread out the cost over time. 

Curious about the types of auto repair and service companies we help to get financing through our partnerships?

Our financial partners work with virtually all types of auto repair and service companies including: 

• Auto repair services 
• Auto body shops 
• Private and franchise oil, lube, and filter businesses 
• General mechanics and specialty service providers 
• Maintenance and service centers 
• Tire and break retailers 
• And more 

If you’re looking for funding to keep operations running, to expand to a new location, or to upgrade your shop, click here to get matched with your best financing options from our trusted partners. It’s fast and free to use.

Mechanics, repair and service facility owners, and body shops can use business loans to cover almost any expense when it comes to their business, from renovating reception areas to hiring admin staff to purchasing new equipment.

Here are some other examples of the ways auto service and repair business owners like you can use the financing offered by our partners:

• Hire additional team members including skilled mechanics or technicians, front desk staff, and part-time workers like accountants and cleaners. 
• Purchase automotive parts, equipment, or specialized tools. 
• Invest in new lifts, tire changers, or other repair equipment. 
• Renovate or upgrade the garage to accommodate larger vehicles or additional bays. 
• Invest in marketing or advertising to attract new customers. 
• Expand the range of services offered including custom fittings, detailing, or performance upgrades. 
• Rent additional space for storage or open a second location.  
• Purchase inventory in bulk to get bulk lot discount pricing. 

Our partners customize their financing, so you’ll have a solution that works for your business. 

The requirements to qualify for an auto shop business loan vary by financing provider. Traditional lenders, credit unions, government agencies, and alternative online lenders are all going to have certain minimum requirements that applicants need to meet to get funded. These may include a minimum amount of time in business (i.e., six months to a year), a minimum amount in annual sales, and an established credit score (from poor to excellent).

Regardless of the amount of time you’ve been in business, your annual revenue, and your FICO score, SmallBusinessLoans has solutions for you through our extensive network of trusted partners. Click here to see your matches now.