Auto Repair & Mechanics
Auto Repair Shop Loans
Auto repair shops fund diagnostic equipment, lifts, parts inventory and expansion. Consistent daily revenue makes shops a good fit for revenue-based funding, which is approved on sales rather than credit score.
For auto repair & mechanics
What it pays for
- Lifts, alignment racks and diagnostic tools
- Parts inventory
- Bay expansion and additional locations
- Technician hiring and certification
- Slow-season cash flow
- Won't affect your credit
- Free, no obligation
- Up to $500K
Why the bank said no
It is usually the same reason a lender says yes.
Independent shops are small and asset-light on paper, so banks decline on size. Daily ticket revenue is steady and verifiable, which is precisely what a revenue-based lender underwrites.
Why do banks turn down auto repair shops for loans? →Funding options
Funding options for auto repair & mechanics.
The right product depends on what the money is for. One application here goes to the lenders in our network that fund auto repair & mechanics businesses in your state; they decide, typically within 24 hours, and funds can land in as little as 72 hours.
| What you need it for | What usually fits | Why |
|---|---|---|
| Lifts, alignment racks and diagnostic tools | Equipment financing | The equipment secures it, at a lower price than an advance. |
| Parts inventory | Merchant cash advance | Underwritten on steady daily ticket revenue and repaid from it. |
| Bay expansion and additional locations | Longer-term financing (a bank or SBA loan) | Premises pay back over years; an advance is the wrong shape. |
| Technician hiring and certification | Working capital loan | Payroll and training ahead of the tickets a new technician brings in. |
| Slow-season cash flow | Merchant cash advance with a true holdback | The payment is a share of sales, so a slow month costs less. |
How does each kind of funding work for auto repair & mechanics?
Checked by Alex Makowski.
Two things decide how each product behaves in a trade: how the money comes in, and whether the need comes back. An advance repaid as a share of card sales falls in a slow week; one repaid by a fixed daily or weekly debit against deposits does not. Equipment secures its own financing, so it costs less than unsecured money. A line costs interest only on what is drawn, for the days it is drawn, and is the hardest of the four to open, usually needing a year or two of trading and clean statements. A working capital loan has fixed repayment, so size it to your slowest month.
Merchant Cash Advance for auto repair & mechanics
Shops take most payments by card when the customer picks up, which suits an advance with a true holdback: a slow week in the bays means a smaller payment. Parts inventory and the slow season are the usual uses. Ask whether you are being offered a holdback on card sales or a fixed daily debit, because the two behave very differently in a quiet month.
Working Capital Loans for auto repair & mechanics
Covers hiring and certifying a technician before the tickets they bring in, or a one-off cost such as a large parts order for a new fleet account. It suits a shop with even car counts better than one whose work swings with the weather, tire season or the first cold snap.
Equipment Financing for auto repair & mechanics
Lifts, alignment racks, tire machines and diagnostic scanners are standard equipment financing. Scan tools date as vehicles and software change, so a shorter term or a lease suits them better than a long loan. Lifts and racks last far longer and justify a longer term, which keeps the monthly figure down.
Business Line of Credit for auto repair & mechanics
A line covers the uneven months: a slow January, or a big parts bill on a fleet account that pays on terms. An established shop can usually open one, and it is the better tool when fleet and insurance work pays weeks after the car has left the bay.
What your deposits support
Before you apply
What to have ready before you apply.
- Six months of business bank statements, plus card processing statements if you have them.
- Average monthly deposits — count both card and cash going through the account.
- Whether existing equipment is financed and with whom.
FAQ
Auto Repair & Mechanics: questions owners ask.
- Can an auto shop get funding with bad credit?
- Commonly yes. Consistent daily revenue matters far more than credit score to a revenue-based lender, and many set no minimum score.
- How is diagnostic equipment financed?
- Through equipment financing, secured by the tool itself, which usually means better approval odds and pricing than unsecured funding.
- How quickly can a shop get working capital?
- Often within one to three business days. Card and bank deposits make revenue quick to verify.
Auto Repair & Mechanics funding by state
Guides
Guides on this
Why do banks turn down auto repair shops for loans?
Independent shops are small and asset-light on paper, so banks decline on size before they look at trade. Daily ticket revenue is steady and verifiable, which is precisely what a revenue-based funder underwrites — and it usually supports funding within a few business days rather than weeks.
You want a second lift and an alignment machine for your shop. Equipment financing or a working capital loan?
Equipment financing for both — a lift and an alignment rack are exactly the assets it exists for, financed over three to five years with the vendor paid directly, and available to a shop at six months in business with a personal score around 600. Use working capital only for the concrete work, the electrical, and the bay you lose for a week during install. Alignment machines pay back fast; that is the case to make in the application.
One application, every lender we work with
Find out what you qualify for before you need it.
Eleven questions, about two minutes. You see offers side by side and take one, or none.
- Won't affect your credit
- Free, no obligation
- Decisions usually inside 24 hours
- Up to $500K