Business Loans for Auto Repair Shops

• Business loan options designed for auto repair shop owners.
• Fast & easy funding application process for Auto Repair Shops.

Small Business
375 Million+
in Funded
Rating from
the BBB
61 Google Reviews
hero banner image

Auto Repair Shop Business Loan Options

Small businesses in the auto repair industry face a highly competitive and challenging environment. To navigate these challenges, exploring various auto repair loan types can offer a strategic advantage. The demands of running a successful auto repair business for small business owners can be complex, involving not only car repairs but also managing auto repair shop costs and ensuring access to the latest auto repair equipment financing options. Understanding the diversity of auto repair financing tools available is crucial for businesses looking to expand, invest in new auto repair shop tools, or simply maintain their competitive edge in a rapidly evolving market.

What is an Auto Repair Business loan?

A lot needs to be addressed in an auto repair shop’s operation, including facility and location maintenance, equipment to meet the needs of repairs, proper advertising for customer acquisition and retention, and a skilled labor force with continued education and training. Auto repair shop loans are necessary to tackle all of these needs, gain an edge above the competition, and reach your business’s full potential.

Just like in real estate financing, finding the right loans—for instance, a real estate financing loan—can provide the capital required for significant expenditures. Financing companies nowadays offer various tailored solutions for businesses, including the auto repair industry. Ensuring you're equipped with a suitable financing plan is as essential as having the right tool for a specific repair job. Finding the right loans for your auto repair business is not just a need, but a strategic step towards sustainable growth and stability.

How do Business Loans for Auto Repair Shops Work?

Auto repair business owners will face challenges when dealing with traditional loan outlets for a bank loan. AdvancePoint Capital has the experience and history of acquiring small business loans for auto repair shops across the United States. We can provide the small business loans that auto repair shop owners require to meet their needs compared to a bank loan or other traditional lenders. Are lenders marketplace is second to none. Try out our financing options today!

Get Started Today

Get Started Today

AdvancePoint Capital makes the loan application process a simple, straightforward experience.

Small Business Loans for Auto Repair Shops

Long-Term Business Loans

Long-Term Auto Repair Business Loans

Long-term business loans are a solid choice for real estate financing and the eventual ownership of the premises where your auto shop business operates. These loans can facilitate significant expansions and are an excellent resource due to their manageable repayment options. Great for refinancing debt could be an avenue to consider for even better financial flexibility or to take advantage of lower interest rates over time.

  • Terms that range from 3 to 10 years
  • Monthly Payments
  • Attractive rates starting at 9%

Learn More

Short-Term Business Loan

Short Term Auto Repair Business Loans

Short-term small business Loans provide a great option for an auto repair shop loan. These loans stand out among other lending options due to their accessibility and speed. With easier credit approval, there is no need for a detailed business plan, making it a suitable choice, especially if you're seeking a boost for your auto repair business without the rigid criteria typically associated with big bank financing. Also, fair interest rates, and limited financial documentation required for small businesses make this a practical alternative. Typically, applicants are only required to submit a 1-page application and recent bank statements for approval, alleviating the pressure of an upfront investment in time and resources.

  • Fast & streamlined application process
  • Duration of time to repay 3 months to 18 months
  • Tolerant to credit issues

Learn More

Business Line of Credit

Business Line of Credit for Auto Repair Shops

Auto repair business credit line is a great financing option when you need funds quickly and offers tremendous flexibility for shop owners, similar to the variety provided by SBA programs. A line of credit requires good credit history with good personal credit. Not only a boon for routine operational costs, this type of funding can be a strategic borrower tool for immediate investments or unexpected expenses. A great option for working capital to support cash flow, support business operations, and increase sales. This product is a revolving line of credit and not a loan, allowing for a dynamic approach to financial management.

  • Flexible funding option, revolving credit facility, offering the kind of flexibility that makes a difference in how the borrowed funds are utilized.
  • Draw and pay down on-demand, providing a level of borrower autonomy that's particularly valuable in the fluctuating automotive market.
  • Streamlines application process, reflective of modern financial practices that cater to a broader range of borrowers and credit profiles.

Learn More

SBA Loan

Small Business Administration (SBA) Loans for Auto Repair Businesses

Auto repair business loans through the SBA’s financing programs can offer substantial support for auto repair businesses aiming to scale or modernize. The SBA’s diverse financing program options, such as the flexible SBA 7(a) loan and the fixed-rate SBA 504 loan, which particularly promotes business growth and job creation, can cater to extensive needs that traditional business lines or short-term loans may not cover. Nevertheless, obtaining an SBA loan entails a rigorous application and approval process, with SBA-approved lenders setting high standards for their candidates.

  • Excellent credit required
  • Rates starting at Prime + 2.75%
  • Significant application package required

Learn More

Business Cash Advance

Business Cash Advance

Business cash advances offer a lump sum of funding to the auto repair industry, perfect for those times when immediate financial support is needed without the complexity of a lump sum loan. Often, credit is impaired or financial statements may not meet the stringent requirements of more traditional financial institutions. With a quick application process and a fast credit decision, entrepreneurs find this a great working capital solution. Unlike traditional loans that provide a lump sum of money upfront and require a repayment plan, a business cash advance is directly tied to daily revenues, making it flexible and more manageable. Found through an online lender rather than traditional lenders, a business cash advance is not a loan but an advance, as repayment terms are based off of future receivables.

  • Revenue-based funding
  • All credit considered from Excellent to poor
  • Flexible repayment feature, providing an alternative to the fixed monthly payments associated with a lump sum loan

Learn More

Business Credit Cards

Business Credit Cards Auto Repair Shop Owners

An auto shop requires capital on a regular basis and credit cards are an essential tool in the toolbox to purchase inventory or new equipment, pay bills and maintain enough cash and extra funds in your business bank account. Credit cards offer not just a lump sum but also a revolving line of credit, which is popular among various businesses, including those in the automotive repair industry. For owners, keeping a business email tied to such financial tools can streamline fiscal management and ensure timely notifications on transactions and billing.

  • A plastic card is issued for purchases and to pay expenses
  • Rates starting from 0% up to 29.99%
  • Instant application and approval, often requiring only basic business information like an email for seamless digital communication

Get Quote Now

Equipment Financing

Auto Shop Equipment Financing

When managing an auto repair shop, ensuring you have the latest tools can mean the difference between thriving and just surviving. Opting for equipment leasing can be a strategic move, allowing you to keep the shop's tools and technology current without the hefty upfront costs associated with buying equipment. Equipment financing programs are tailored to meet the automotive business’s needs, providing a loan for equipment at an affordable interest rate with the benefits of preserving capital and improving cash flow.

  • Equipment used as collateral
  • Terms from 2 to 7 years conducive to business scaling
  • Monthly affordable payments facilitating better financial planning

Learn More

SBA Financing Options for Auto Repair Businesses

The Small Business Administration (SBA), a government agency, offers unique business loan programs that most traditional lenders would not offer. The mission of SBA is to support small business owners with financing. SBA set's the product guidelines and provides SBA guarantees up to 75% for approved SBA lenders who actually originate and service the loan. The application process does require significant documentation and the applicant must have good credit history.

SBA 7(a) loans for auto repair shop financing

The most popular working capital option for auto repair shops is the SBA 7(a) loan. They offer terms typically from 5 to 10 years (up to 25 years with real estate) and have attractive rates and terms that are unmatched.


  • Rates starting at prime + 2.25%
  • Low Origination Fees
  • Maximum Loan Amount $5,000,000

Use of Funds:

  • Expansion
  • Renovation
  • New Construction
  • Purchase land or buildings
  • Purchase equipment, fixtures
  • Working capital
  • Refinance debt for compelling reasons
  • Inventory

What are the eligibility requirements for an SBA 7(a)

To qualify for an SBA 7(a) business loan, auto repair shop owners must have very good to excellent credit history and be able to support financing by demonstrating through the financial statements of the business excellent cash flow, consistent revenue, and profit.

What are the advantages of an SBA 7(a)?

  • The rates are second to none in business lending
  • Affordable monthly payments
  • Longer terms than other options

What are the repayment terms for an SBA 7(a)?

  • Terms from 5 to 10 years (up to 25 years with real estate as collateral)

What documents are required to apply for an SBA 7(a)?

  • Extensive Application
  • Business Bank Statements
  • 3 years Business Tax Returns
  • 3 years Personal Tax Returns
  • Financial statements such as profit and loss, balance sheet, debt schedule, business assets, accounts receivable, accounts payable, invoices, and income projections.
  • Personal Financial Statement
  • Business contracts and agreements
  • Business Plan

SBA 504 loans for auto repair shop businesses

SBA 504 loans, also known as Certified Development Company (CDC) loans, are issued by non-profit organizations to promote economic activity and are used to purchase real estate or equipment.


  • Maximum loan amount generally kept at $5,000,000
  • Increment above the current market rate for 10-year U.S. Treasury issues
  • 10% down payment in most cases
  • Terms that range from 10, 20 or 25 years

Use of Funds:

  • Existing Buildings expansion/modernization of existing real estate or large equipment.
  • Purchase new facilities
  • Refinancing of large equipment and/or owner occupied commercial real estate

Applying for SBA loans for auto repair businesses

  • Must apply through Certified Development Companies CDC's

Selecting an SBA Lender

When selecting an SBA loan lender or originator it's important that they have the necessary experience to evaluate your application and qualifications so you have the best chance at getting approved for an SBA loan.

  • Check to see if you are dealing with an SBA approved lender or broker
  • Determine what SBA loan products they offer such as SBA 7(a), Microloan, 504 C, SBA Express, Veterans Advantage, and CAPLines
  • Expertise in funding auto repair shops

Common Uses and Benefits of Auto Repair Shop Loans

Running an Auto Repair Business can have a unique set of cash flow issues. Payroll, advertising, pay for inventory, equipment maintenance, and purchases — as well as property maintenance and improvements, can really cut into cash flows. This makes it essential to have loan options to balance your revenue and have the proper reserves to handle anything that may come up, such as paying capital expenses.

Auto Repair Shop Equipment

An equipment loan or lease for auto repair business may be necessary because machinery for auto repair shops can get pricey, often into the tens of thousands of dollars. Equipment such as lifts, air compressors, computer auto evaluation tools, tow trucks, and a variety of specialty equipment tools most of the time will require loans to purchase. Equipment loans will keep your cash in your bank account instead of draining your working capital cash flow.


Mechanics are in high demand and therefore are not easy to find. Recruiting mechanics can be costly by offering signing bonuses and continuing education training. Having the capital to seize upon the opportunity to add key employees is a must.


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

Renovations/Capital Improvements

The real estate that the auto repair shop is located on will need to be maintained. Expansion of customers may translate into facility enhancements and require business funding to finance additional work bays, customer service desks, and seating areas for people waiting for their cars to be repaired or for other structural needs. A loan will be needed as cash flow alone won't cut it.


Advertising, now more than ever, is a part of getting new customers, maintaining your customer base, and being a successful Auto Repair Shop. The success and growth of an auto repair shop require attention to the internet. Auto repair business loans may be required because the money needed for these services adds up fast. The cost and fees to have a proper website built and online marketing can reach tens of thousands of dollars.

Pros and Cons of Business Loans for Auto Repair Shops

Although there are many uses of capital for a business it is still important to weigh the pro's and con's of financing a business in general and not take advantage of unless you weigh the costs verse the benefit


  • Financing can solve business problems
  • Preserves capital reserves
  • Spreads the cost of purchases over time


  • Builds debt on the business
  • Can negatively impact credit and over-leverage business
  • Adds monthly expenses to the business


Apply For Your AdvancePoint Loan Today!

cta banner female

SBA Financing for Auto Repair Businesses

Types of Auto Repair Shop Owners We Serve

Types of Auto Repair Shop Owners We Serve:

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

Alternatives to Business Loans for Auto Repair Shops

  • Credit Cards- Auto shop owners use credit cards to purchase inventory, tools and supplies as well as small equipment.
  • Self Funding- Its not uncommon for a auto repair shop business owner to lend the company money to help the business with purchase and expenses
  • Raising Capital-If a large expansion or renovation is needed, sometimes raising capital by giving up equity is the only solution.
  • Traditional Bank loan- Although difficult to obtain, some auto repair shop owners can qualify for a traditional bank loan.

Additional Resources-Grants

Are you looking for grants to support you auto repair business? Check out the following Grant Programs

  • National Association for the Self Employed (NASE) - The NASE is a non-profit organization that provides support to small businesses. If you become a member you can apply for a business development grant worth up to $4,000.
  • Amber Grant - WomenNet founded the Amber Grant to give women-owned businesses grants. Every month the foundation awards a $10,000 grant to a women entrepreneur and also an additional once a year $25,000 grant to one of the proceeding 12 Amber grant winners.
  • America’s Top Small Business - The U.S. Chamber of Commerce offers a $25,000 grant to small business owners with fewer than 250 employees.

How to apply for a business loan for an auto repair shop

Once you have determined your need or why you need business funding for your auto repair business, the following are the most common steps to take when applying for a business loan

  1. Research Products- Understand what products are available in the market place that best suits your needs such as business loan, line of credit, merchant cash advance, or equipment financing options.
  2. Understand your Qualifications- It's important to understand your qualifications and review your credit, cash flow through business bank account, your financials (the numbers such as monthly sales , expenses, profits), and how lenders view the auto repair shop industry.
  3. Research Business Loan Originator- Communicate and chose a bank, credit union, business loan broker, online business lender or other originator who has a good reputation, product diversity and products that meet your qualifications. Compare what they offer and the terms before you apply.
  4. Fill out application and supply Documentation-Once you have chosen a business loan originator you will need to fill out an application and provide documents such as bank statements and/or financial to secure offer(s).
  5. Receive Offer(s) to Consider- Once you receive offers in writing, compare product features, rates, costs and fees as well as the terms and conditions of approval. What's best for your need may not always be the best rate, terms play a role in your decision as well. Always shop around and compare so you know your getting the best product and terms for your qualifications and needs.
  6. Make Selection- Select option, provide closing conditions for final approval and sign agreement.
  7. Final Approval- The lender or funder will review final conditions and conduct verifications and if all is clear, issue a clear to fund.
  8. Receive Business Funding- Once you have final approval money is sent same day

The application process can vary by lender, product and qualifications of the auto repair shop.

Frequently Asked Questions