Business funding for auto repair shops
A shop's biggest costs are the lift, the diagnostic scanner and the tech behind the counter, and most of the revenue comes in on a card the same day the work is done. Repair shops usually fund equipment separately from the day-to-day cash that keeps bays turning over.
- One application, several lenders
- No credit pull to see your options
- No fee to you, ever
Common funding needs
- Buying or replacing a lift, alignment rack or diagnostic scanner
- Stocking parts for a busy week
- Covering payroll between slower weeks
- Opening a second bay or location
What usually fits
Products that usually fit
- Equipment financing for lifts, scanners and shop equipment that hold resale value.
- Line of credit for parts and payroll between busy stretches.
- Merchant cash advance sized to what daily card sales can carry, for urgent needs.
- Term loan for a second bay or location.
How a merchant cash advance works for you, and when it is too expensive
An MCA for a repair shop is repaid as a fixed percentage of daily card sales, so on a slow day the debit is smaller and on a busy day it is bigger. The cost is the factor rate, typically 1.15 to 1.45 of what you borrow, and that total is fixed no matter how fast you pay it back, so paying early does not save you money the way it does on a loan. It gets expensive fast if a shop stacks a second advance on top of one it is still paying, because two daily debits come out of the same card sales. Before signing, compare the total payback in dollars against a line of credit or equipment financing for the same need.
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 needs $30,000 for a new alignment rack. With equipment financing over 4 years at an illustrative 8-18% a year, payments run about $732–$881 a month, or $35,155–$42,300 total.
The same $30,000 as a merchant cash advance at an illustrative factor of 1.20-1.35 means paying back $36,000-$40,500, usually inside 6 to 12 months, taken daily from card sales.
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
- Monthly card and bank deposits over 3 to 6 months
- Bay count and technician headcount versus revenue
- Existing equipment loans or cash advances on the account
- Lease length at the current location
- Owner credit
Honestly
Who this is not for
- A shop that just opened with no deposit history
- Financing equipment the current bay volume cannot support
- Stacking a second advance on top of one still being repaid
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 repair funding questions
Can a new repair shop get funding?
Most lenders want at least 6 months of card and bank deposits. Equipment financing sometimes works sooner, especially with a down payment.
Is a cash advance a bad idea for a repair shop?
Not always, but it is one of the most expensive options. We show the total payback in dollars before you decide, and compare it with a line of credit.
Do you finance used shop equipment?
Some equipment lenders finance used lifts, racks and scanners; others only new. Tell us what you are buying and from whom.
What do lenders look at first?
Card and bank deposits, because that is the clearest sign of how much work is moving through the bays.
Guides
Guides for auto repair
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Where we work: all US states · all Canadian provinces
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