Best Business Loans for Auto Repair Shops

The Auto Repair industry is highly competitive and faces many challenges to gain a strategic advantage over the competition. The demands of running a successful auto repair business include the facility and location maintenance, equipment to meets the needs of repairs, proper advertising for customer acquisition and retention, and skilled labor force to acquire and continued education and training. Business financing is necessary to be able to tackle all of these needs and gain an edge above the competition.

AdvancePoint Capital has the experience and history with funding Auto Repair Shops like yours to provide that working capital meet the needs of your Auto Repair business.

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The 5 Best Business Loan Options for Auto Repair Shops:

 

Term Business Loans for Auto Repair Shops

A Term Business Loan is a loan typically acquired at a bank or credit union that has a fixed amount that you are approved for with a fixed term of 3 to 10 years, with a principal and interest rate, and monthly payments. These business loans offer the lowest rates and terms but are extremely difficult to achieve as they have high credit standards, more financial paperwork to provide, minimum gross revenue and profit requirements that most small businesses do not have and minimum time in business, typically three years.

Highlights of Term Business Loans:

  • Low-interest rates and fee starting at 7%
  • Terms from 3 to 10 years in duration
  • Monthly affordable payments

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Short Term Business Loans for Auto Repair Shops

A Short Term Business Loan is very accessible to many small businesses as it has lower annual revenue requirements and typically does not provide business funding based on profit & loss and relies more on credit and cash flow health in the business bank statements. Short term business loans feature a fixed amount funded with a fixed amount that you’re responsible for paying back over a fixed term of time, with typically a fixed monthly, weekly, or daily payment via ACH.

Highlights of Short Term Business Loans:

  • Business funding in as little as one day
  • Excellent to poor credit accepted
  • Only an application and three months bank statements required for approval
  • Easier approval qualifications than most other business loan products

Business Line of Credit for Auto Repair Shops

Business lines of credit offer the most flexibility in that they operate as a credit card and enable you to access money at any time as long as you have not reached your credit limit. Business owners also have the ability to apply for an increase with additional information provided and approved. You receive a credit limit once approved and can draw as little as you want, as often as you want, as long as you don’t exceed your limit. They are typically six months to a year in duration but can be revolving and have principal and interest rates that can be quite attractive.

Highlights of Business Line of Credit:

  • Attractive interest rates starting at 7%
  • Revolving credit
  • Affordable monthly payments
  • Ability to take as little as you want and draw on it as often as you like
  • Only responsible for the interest on the current balance

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SBA (Small Business Administration) Loans for Auto Repair Shops

If you demand the best business loan product at the best price and terms and you have time and a knack for paperwork, then an SBA loan may just be what you are looking for. SBA loans, short for Small Business Administration, is a loan guaranteed by the Small Business Administration. The rates and terms are more attractive than any other type of business financing, but the catch is they are difficult to get approved for with stringent qualifications.

Highlights of SBA Loans:

  • Repayment terms from 1 to 25 years
  • Best interest rates available for small business, Interest Rates as low as 5%
  • Monthly affordable payments

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Business Credit Cards for Auto Repair Shops

Business Credit Cards are credit cards that have business guarantees and are revolving lines of credit that can be used for purchases of any sort using a card or account number. When used, the business owner pays accrued interest on the balance with low minimum monthly payments and no set term for repayment. Very flexible forms of credit that can help build both personal and business credit.

Highlights of Business Credit Cards:

  • Revolving credit with Principal and Interest charged.
  • Helps business both personal and business credit
  • Ease of use and requires little to no contact with a creditor with online access to all account needs.
  • Flexible Monthly payments

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Benefits of Auto Repair Shop Business Loans

Running an Auto Repair shop can have a unique set of cash flow issues. Payroll, advertising, equipment maintenance, and purchases — as well as property maintenance and improvements, can really cut into cash flows. This makes it important to have business financing to balance your cash flow and have the proper reserves to handle anything that may come up in running an auto repair shop.

 

Owning Your Own Equipment

I think it can be easily said that the mechanics and workers working on automobiles are the lifeblood of an Auto Repair Business. Hiring the right people and maintaining continuing education is a must and can be costly, especially if you’re trying to maintain high standards of qualification and certification. Sometimes signing bonuses are needed to acquire the talent and maintain a high standard of knowledge and education. Business financing may be needed to fill the gaps and keep cash flows strong.

Supplies

You may be the type of Auto Repair Shop that needs to maintain a certain amount of supplies on hand to improve the speed and efficiency of your business. Acquiring items in bulk may require financing to get special deals or save on money.

Advertising

Advertising, now more than ever, is a part of being a successful Auto Repair Shop. The success and growth of an auto repair shop require attention to the internet. You’re not in business unless you’re showing up on the first page of a Google search, it’s the Yellow pages of the 21st Century. There are many options out there for a customer to repair their car, and more customers use internet search engines to find a solution. Cost to build a website and the search engine optimization needed month over month will cost thousands of dollars but will be well worth it. Financing that cost may be necessary if you don’t have the upfront money. Costs to have a proper Website built and optimized for search engine optimization can reach above $10,000, let alone the monthly optimization work, which takes time, effort, and money paid to web developers who specialize in search engine optimization.  

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Types of Auto Repair Shops Companies We Serve:

  • Auto Repair Shops
  • Tire Stores
  • Transmission Repair Shops
  • Car Detailing and Car Wash
  • Auto Parts Stores
  • Towing Services
  • Truck Repair Shops
  • Auto Body Shops

Why AdvancePoint Capital?

  • Experience- with Auto Repair Industry. We have been funding auto repair businesses for years.
  • Trust-Excellent reviews and feedback from Auto Repair Businesses
  • Loan Specialists –Experiences Business funding specialists who know the auto repair industry.
  • No cost, no commitment quotes
  • Products – A Variety of Auto Repair Business Loan Products. We don’t just offer what we have; we offer what’s available in the marketplace.

Start to Grow Your Auto Repair Business Now!

The fast, convenient and straightforward way to get the money you need for your business – now! Get Your Quote Today by filling out our simple form.

* All loans made by either WebBank, an FDIC-insured Utah industrial bank, or Bank of the Internet Federal Bank, an FDIC-insured federally chartered thrift located in California. In connection with the loans, the Banks' underwriting conditions and terms apply.