Merchant Cash Advances » Auto Repair Business Advance

Auto Repair Business Funding

Female auto repair shop owner and man stand beside car.

By Richard Wilson

Last Updated on

Estimated read time: 7 minutes

As an auto repair shop owner, you’re part of a massive industry. The auto repair sector in the USA is worth a whopping 188.13 Billion according to a Mordor Intelligence Report in 2024 and has over 230,000 independently owned auto shops according to a Gitnux Report. But when it comes to getting a loan, banks can be cautious about lending to businesses like yours.

Sometimes your auto shop needs access to funding fast, whether for an emergency or a business upgrade. But bank loans? They can take ages, from weeks to months, and that’s if you even get approved. And let’s not forget about credit scores. If your credit isn’t great, your chances of getting a traditional loan can really take a hit. Plus, banks often want collateral, something many auto shops don’t have ready to offer.

In the auto repair industry, managing finances can be as crucial as fixing cars. That’s where MCashAdvance auto repair shop business advances come into play. If you’re faced with the need for quick cash — whether it’s for upgrading equipment, expanding services, or handling unexpected expenses — MCashAdvance provides a straightforward and fast solution. Unlike traditional bank loans that can be slow and filled with hurdles, especially if your credit history is less than perfect, MCashAdvance offers a more accessible alternative.

We offer auto repair shop business advances ranging from $5,000 to $900,000 to help grow your automotive repair enterprise. We fund all types of auto repair businesses, including mechanic shops, tire shops, and transmission services. Our process is simple, with no need for collateral and no lengthy paperwork. And the best part? You could get the funds in as little as 24 hours, or at most, within 3 days. Even if your credit score isn’t the best, we don’t do hard credit checks, so applying won’t hurt your score.

So, if you’re looking to grow your auto repair business and need a financial boost without the hassle, MCashAdvance’s business advances are the way to go. Quick, straightforward, and tailored for auto repair shops like yours.

Get an Auto Repair Shop Loan Alternative Now

MCA Feature Offer Details
MCA Amounts: $5,000 – $900,000
Factor Rate: 1.1 – 1.5
Holdback 10 – 25%
Repay In: 3 – 18 months
Funding Time: 1 – 3 days

Applying is easy, free, and won’t impact your credit score.

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What is an Auto Repair Shop Business Advance?

An auto repair shop business advance is a type of merchant cash advance (MCA) created for auto repair shop businesses, including mechanic shops, tire shops, and transmission services.

Your auto repair shop business sells a portion of the future revenue it receives to MCashAdvance in exchange for an upfront lump sum of funds called a cash advance.

In exchange, we will deduct a small percentage of your daily sales revenue from credit card transactions processed in your auto repair shop until the advance is fully repaid.

Emergency Funding for Auto Repair Shop

When your auto repair shop hits a rough patch financially, be it from fewer customers, unexpected costs, or a cash flow slump, you might find yourself in need of emergency funding. Here’s where our auto shop advances come in handy. They provide you with rapid access to cash, often within 24 hours and typically within 1 to 3 days. The flexibility of these funds means you can use them for any business need, giving you the freedom to manage your shop’s finances effectively.

Auto Repair Shop Financing for Any Purpose

Here are 12 common ways a cash advance can be utilized in your Auto Repair Shop:

  1. Buy Auto Diagnostic Tools: Invest in advanced diagnostic equipment to quickly find car problems. This makes your service more efficient and reliable.
  2. Train Your Technicians: Pay for your mechanics to get or renew their certifications. This ensures they’re up-to-date with the latest repair techniques.
  3. Upgrade Garage Equipment: Improve your workshop with new tools like lifts, tire changers, or alignment machines. This makes your service faster and safer.
  4. Expand Parts Inventory: Stock more spare parts and replacement items. This means you can fix a wider range of cars faster.
  5. Install a Digital Booking System: Make scheduling appointments easier and more convenient for your customers with an online system.
  6. Enhance Your Waiting Area: Create a comfortable waiting space with amenities like free Wi-Fi and coffee. This improves your customers’ experience.
  7. Marketing and Advertising: Use the funds for ads to attract more customers to your repair facility.
  8. Develop a Warranty Program: Build trust with customers by offering better warranty options.
  9. Start a Mobile Repair Service: Offer on-site repairs and roadside assistance to fix cars wherever they break down.
  10. Add Towing Services: Buy towing equipment to help customers get their broken cars to your shop.
  11. Offer Vehicle Inspections: Use the funds to provide thorough car check-ups.
  12. Provide Loaner Vehicles: Offer courtesy cars to customers who need to leave their car for longer repairs.
Man and woman stand beside car at auto repair business indicating payment process.

Automotive Workshop Advance Example

Let’s say you need a $15,000 auto repair shop merchant cash advance to purchase a new tire machine changer for your automotive Workshop. If you are approved for $15,000 and receive a funding offer with a factor rate of 1.175, your total repayment amount will be $17,625 (Advance Amount + Fees).

Advance Amount$15,000
Factor Rate1.175
Avg Monthly Credit Card Sales$10,000
Holdback Percentage15%
Daily Credit Card Sales$333.33 per day (approx.)
Daily Payment Amount$50.00 per day (approx.)
Repayment Term (in days)Approximately 352 days
Repayment Term (in months)Approximately 11.60 months
Total Repaid$17,625 (Advance Amount + Fees)

Car Service Center Funding Eligibility

To be eligible for funding from MCashAdvance you must meet these 5 criteria:

  1. Your auto repair shop must have been operational for at least 6 months.
  2. Your garage should be generating a minimum of $100,000 per year in revenue.
  3. As the auto repair shop owner, your personal FICO score needs to be 550 or higher.
  4. Your auto service center must utilize a business checking account.
  5. You, as the auto repair shop proprietor, must be over 18 years of age and a U.S. citizen.

How to Get an Auto Repair Advance from MCashAdvance

To get an advance for your auto repair business from MCashAdvance, follow these 5 steps:

Step 1: Begin Online Application: Click Apply for an MCA to begin.

Step 2: Fill in Your Details: Provide information about your auto repair shop and some personal details as the owner of the shop.

Step 3: Submit Bank Statements: Upload the last three months’ bank statements of your auto repair shop.

Step 4: Await Review Process: One of our underwriters will review your cash advance application to make a decision on funding.

Step 5: Receive Offer and Funding: Once you get a funding offer, review it. If it suits your business needs, accept it, sign the MCA agreement and the funds will be deposited into your business account.

Get an Auto Repair Business Advance Now

or learn more about merchant cash advance loans

Autoshop Funding FAQs

Can auto repair shops get an SBA loan?

Auto repair shops can potentially qualify for SBA loans, with options such as the SBA 7(a) Loan and SBA Express Loan available to provide financial assistance tailored to their industry.

Can auto repair shops get invoice financing loans?

Auto repair shops may not be the typical candidates for invoice financing, as their billing structure often involves immediate payment from customers. However, if they have substantial commercial clients and issue invoices for services rendered, they might qualify for invoice financing.

Do banks lend to auto repair shops?

Banks typically require auto repair businesses to have at least two years in operation, a FICO credit score of 680 or higher, three years of cash flow records, and a well-structured business plan outlining fund usage. Meeting these criteria increases the likelihood of bank approval. If you can’t meet these standards, alternative lenders like MCashAdvance may have more accessible eligibility criteria for obtaining financial support for your auto repair shop.

How does auto repair equipment financing work?

Auto repair shops can invest in equipment like diagnostic tools and use the diagnostic tools as collateral to secure financing. At MCashAdvance, you can obtain diagnostic tools using our advances without having to use the equipment as collateral.

Can auto repair shops get business lines of credit?

Yes, auto repair shops can obtain a business line of credit if they meet specific criteria tailored to the auto repair industry. Qualifications often encompass having a FICO credit score of 660 or higher, a minimum of one year in the auto repair business, and maintaining monthly revenue exceeding $5,000 as an auto repair shop.

How profitable is owning an auto shop?

Your auto shop’s profitability depends on your location, services, and how well you manage it. Good shops in the right spots can make a decent profit.

What credit score do you need for an auto repair shop business loan?

For a business loan for an auto repair shop, most U.S. banks require a minimum credit score of 690. However, for a cash advance from MCashAdvance, a minimum credit score of 550 FICO is sufficient.

Why might an automotive repair business require additional funding?

An automotive repair business may need funding for equipment, staff training, service expansion, increasing parts inventory, marketing, or to manage cash flow in slow periods. Traditional lenders often require a detailed business plan for loans, but an MCA from MCashAdvance provides more flexibility, allowing funds to be used for any business-related purpose.

Does the government loan money to auto shops?

Yes, the government, through programs like the Small Business Administration (SBA), can loan money to your auto shop for things like expansion or buying equipment. You’ll need to qualify for these loans.

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