Business funding for auto body shops
Collision work means paying for parts, paint and labour up front while the insurance payment lands weeks later, sometimes after a supplement gets approved. Because that lag is the real pattern here, factoring or a line of credit against those receivables usually makes more sense as a first option than a cash advance against card sales.
- One application, several lenders
- No credit pull to see your options
- No fee to you, ever
Common funding needs
- Covering parts and labour while an insurance claim is processed
- Buying or replacing a paint booth, frame machine or lift
- Managing cash flow around supplement approvals
- Payroll during a slow month between jobs
What usually fits
Products that usually fit
- Invoice factoring against insurer receivables so you are not waiting weeks to get paid for finished work.
- Line of credit for parts and payroll while claims are processed.
- Equipment financing for a paint booth or frame machine.
- Merchant cash advance only for an urgent gap, since most revenue here is insurer-paid, not card-paid.
Compare term loans, lines of credit, cash advances and equipment financing side by side →
Separately, our sister company CELER Merchants offers card processing.
Illustrative example
A worked example
A shop finishes $45,000 of collision work billed to insurers on roughly 30-day payment terms. Factoring those receivables at an illustrative 90% advance puts about $40,500 in the account within days; when the insurers pay, the shop gets the remaining $4,500 minus a fee, illustratively 2-4% for the period outstanding.
Compare that with a line of credit at an illustrative 10-20% a year, where 30 days of simple interest on the same $45,000 would run roughly $375-$750.
Illustrative example only, not an offer or a quote. Rates, fees and terms are set by each lender and depend on your business. Fees are not included unless stated.
Underwriting
What lenders look at
- How insurer payments and supplement approvals typically time out
- Which insurers you bill and how reliably they pay
- Monthly bank deposits including any card volume
- Age and condition of paint booth and frame equipment
- Owner credit and time in business
Honestly
Who this is not for
- A shop expecting same-day cash from a cash advance when the real gap is insurer timing: factoring usually fits that better
- A new shop with no billing history to insurers yet
- Financing equipment a slow job pipeline cannot support
If borrowing does not make sense, we will say so.
Are you a match?
Lender network minimums
Close but not quite there? Apply anyway and we will tell you honestly what is possible.
*Best available terms from lenders in our network. Every lender sets its own criteria; approval, amount and funding time are decided by the lender and not guaranteed.
| Time in business | 1 year+ |
|---|---|
| Monthly bank deposits | $20,000+ |
| Credit score | 500+ |
| Bank account | Business |
| Fee to you | $0 |
| Credit pull to start | None |
FAQ
Auto body funding questions
Why factoring instead of a cash advance for a body shop?
Because the real gap is the weeks between finishing a job and the insurer paying, not daily card sales. Factoring is built for that kind of receivable.
Do you factor insurance supplement claims?
Some factoring companies will, though supplements can complicate timing. Tell us how your supplements usually get approved and paid.
Can I finance a used paint booth or frame machine?
Some equipment lenders finance used equipment; others only new. Tell us what you are buying and from whom.
What if my shop also does a lot of card-paid work?
Then a merchant cash advance or a card-sales-based product can make sense too. We will show you both and let you compare.
Guides
Guides for auto body
Related
Similar businesses
Trucking · Auto repair · Car dealerships · Towing · Limo & transport services
Where we work: all US states · all Canadian provinces
See your options
Two minutes, no credit pull, no fee. We come back with real options from lenders that fit.