Best Auto Repair Loans & Mechanic Loans
- Flexible business financing to suit your needs
- Access to auto repair credit lines, term loans, equipment financing & more
- Applying won't impact your credit score
Don't delay, capitalize on an 85% approval rate now!
What truly set Mike apart was his honesty. He reviewed multiple lender options with me in a fair, transparent way, walking me through the pros and cons of each and helping me understand every angle. He encouraged me to move forward only with what felt right for my business, never once making me feel pressured to choose him or Upwise. That level of professionalism is rare.
Mike also worked hard to build genuine personal rapport — something no other representative I spoke with did. He took the time to understand my business, explored different paths, and made sure I felt confident and comfortable throughout the decision-making process.
The follow-up from Mike and every member of his team has been above and beyond anything I’ve experienced with other lenders. Every interaction feels thoughtful, client-focused, supportive and most important- genuine. I’m incredibly grateful for the experience and would confidently recommend Mike to anyone looking for a knowledgeable, ethical, and truly client-first lending partner.
Update: Leo contacted me, and after basically insulting me concerning their prior behavior, I decided to let them run my application. After being ghosted for the day, they finally came back and denied due to another loan my business was involved in. These people get their feelings hurt way to easy to be in this business. I would not recommend this company to anyone.
Upwise
Loans for Auto Repair: How They Can Help You
Running an auto repair shop involves unique challenges beyond the repairs themselves. Whether established or a startup, these businesses often require financing to stay competitive and facilitate growth. From new equipment and software to facility upgrades and marketing, auto repair shop business loans provide the capital to invest in your shop’s success.
These specialized loans cater to the automotive service industry’s needs. Need funds to remodel or open a new location? An auto repair shop loan can finance expansion projects. Looking to upgrade lifts, diagnostic tools, or shop management software? Equipment financing and leasing options make new technology affordable. With competitive rates and flexible terms, auto repair shop loans deliver the money to cover expenses like inventory, marketing, or working capital – empowering you to take your auto services to the next level.
What can Auto Repair Financing be used for?
Software & Technology
- Put yourself ahead of the competition by purchasing new software and technology using an auto repair business loan
- Have the extra funds to acquire new technology such as, diagnostic equipment, auto repair management and record keeping software
Hire More Staff
- With automotive repair loans, you can address the need for hiring qualified mechanics
- Apart from financing hiring, you may also use funds from a auto repair loan for training costs and payroll to keep your employees happy
Marketing & Advertising
- Use loans for auto repair shops to advertise and grow your customer base or promote a new shop location
- Build or optimize your website, add new signage, or place a magazine or newspaper ad to generate new customers
Manage Cash Flow
- Maintain your capital cash flow to manage expenses when experiencing unforeseen repair shop issues
- Utilize auto repair financing loan options to fund your account receivables and payroll, before your cash flow gets low
New Repair Equipment
- You can use an auto repair loan to buy new shop equipment to perform jobs faster and deploy new diagnostics
- Use equipment leasing and financing to purchase all types of auto repair equipment to improve your shops capabilities
Purchase New Parts
- Importantly, auto repair shops need to have supplies or parts in order to make the necessary repairs in a timely manner
- Auto repair financing can be taken advantage of to cover the cost of parts which allows you to expand your shop inventory without coming out of pocket too much
Types of Auto Repair Business Loans
Loan Amount
$5K to $250K
Unsecured Line of Credit
Loan Amount
$100K to $10MM
Secured Line of Credit
Loan Term
6 Months to 2 Years
Credit Score
500+
Secured Line of Credit: 620+
Interest Rate
7 % - 25 %
Time in Business
Greater than 1 Year
Speed
As Fast As Same Day
Annual Revenue
$150K+
Business Line of Credit
A revolving business line of credit gives access to a pool of funds to draw from when a business owner needs capital. Unlike a traditional business loan, you have the flexibility to borrow up to a set amount, repaying only the amount you withdraw, plus interest.
- Weekly or Monthly Payments
- Only Pay Interest on the Funds you Draw
- Save on Interest by Paying Back Early
Funding Amount
$5K to $5MM
History
Positive Payment History
Time
3 to 18 Months
Credit Score
500+
Factor Rate
1.10 - 1.36
Time in Business
Greater than 3 Months
Speed
As Fast As Same Day
Annual Revenue
120K+
Working Capital
With this product, you are advanced cash in exchange for a percentage of your daily credit card and debit card sales, or your monthly revenue. Working Capital can be a quick and easy way to get a business cash advance with no need for collateral, even if you don’t have a good credit score.
- Minimal Paperwork, Easy Approval & Fast Funding
- Prepayment Discounts for Early Payoff
- Bad Credit Accepted
Max Loan Amount
100% of Equipment Value
History
Good Financial History
and Tradelines
Loan Term
1 to 8 Years
or Expected Life of Equipment
Credit Score
500+
Interest Rate
As Low As 4 %
Time in Business
6 Months +
Start Ups Encouraged to Apply
Speed
As Fast As 2 Days
Annual Revenue
100K+
Equipment Financing
Equipment financing helps you finance up to 100% of the new or used equipment you need for your business. A fast and easy way to finance the purchase of all types of equipment. With a secured loan against your equipment, you can take advantage of the equity in your existing equipment, or use newly-purchased equipment as collateral.
- Avoid large upfront costs for equipment purchased
- Equipment used as collateral
- Monthly Payments
Loan Amount
$5K to $5MM
Loan Amount
$350K
SBA 7(a) Small & Express Loans
Loan Term
5 to 30 Years
Credit Score
650+
Interest Rate
Starting at 6.75 %
Time in Business
Greater than 2 Years
Speed
As Fast As 2 Weeks
Annual Revenue
Over $200K
SBA Loan
SBA loans are the government-backed loans your business needs. The U.S. Small Business Administration (SBA) is a federal agency designed solely to help small businesses get the funds they need. The SBA doesn’t actually lend you any cash, yet it establishes guidelines and guarantees portions of those loans by an approved SBA lender.
- Monthly Payments
- Longest Payment Terms
- Low Interest Rates
Max Loan Amount
$25K to $20MM
Profitability
Shown on Tax Returns
Loan Term
5 to 30 Years
Credit Score
620+
Interest Rate
7 % - 30 %
Time in Business
Greater than 2 Years
Speed
As Fast As 2 Days
Annual Revenue
Over $200K
Term Loan
A traditional business term loan is a lump sum of capital that you pay back with regular repayments at a fixed interest rate. The “term” in “term loan” comes from its set repayment term length, which will typically be one to five years long. Most business owners use the proceeds of term loans to finance a specific, one-off investment for their small business.
- Bi-Weekly & Monthly Payments
- Longer Payment Terms
- Lower Interest Rates
How to Apply for Loans for Auto Repair
What You Need to Qualify
See if your business meets the minimum working capital requirements.
Pros and Cons of Auto Repair Shop Loans
PROS
Access to Funding for Essential Equipment and Tools: Get the capital needed to invest in new lifts, diagnostic machines, and other crucial equipment for your auto repair shop, enabling you to stay competitive.
Preserve Working Capital: Rather than tying up your business’s cash flow in large equipment purchases, auto repair loans allow you to acquire the necessary tools while preserving working capital for other operational expenses.
Flexible Repayment Terms: Many lenders offer tailored repayment schedules for auto repair loans, allowing you to structure the loan in a way that aligns with your shop’s cash flow cycles and revenue patterns.
CONS
Credit Requirements: Depending on the lender, you may need to meet specific credit score and business revenue requirements to qualify for an auto repair loan, which can be challenging for newer or smaller shops.
Interest Costs & Fees: Like any loan, automotive repair loans come with interest charges and potential fees, which can add to the overall cost of the equipment or tools you’re financing.
Potential for Over-Borrowing: It’s essential to carefully assess your equipment needs and project your shop’s future cash flow to avoid taking on more debt than your business can comfortably handle.
Auto Repair Financing: Get Equipment Loans for Your Shop
- Upgrade your auto repair capabilities with specialized equipment loans tailored for the automotive service industry
- Secure the best mechanic loans to renovate or expand your auto repair facility
- Apply for working capital and cash flow funding to cover inventory, marketing and operations
Stay ahead of the curve - get access today!
Why Choose Upwise for Automotive Repair Loans
Quick & easy application
Our simple 15-minute application gets you on your way to funding quickly. Most applicants receive a fast decision within hours of applying. Then just choose your loan terms and you could have funds deposited into your account as soon as 24 hours.
Ensure you make the wise choice
Every Upwise applicant gets a dedicated funding advisor who takes the time to understand your business and it's unique needs. We are here for your support throughout the entire funding process.
Access multiple financing options
Upwise has an extensive product suite and a network of business line of credit lenders. This means you're more likely to find the best match for your funding needs.
Types of Auto Repair Companies We Serve
We offer auto repair business loans to a wide range of industries and companies. You deserve options. Therefore, Upwise provides auto repair working capital, lines of credit for auto repair shops, commercial loans, business loans for mechanics, auto repair equipment financing, business term loans, real estate financing and other auto repair shop business financing options, to meet all your needs. So, here are some of the repair shops & industries we’ve worked with:
- Dealerships
- Independent Garages
- Specialty Shops
- Auto Servicing & Service Technicians
- Diagnostic Technicians
- Engine, Brake, Transmission Experts
- Body Repair & Collision Centers
- Auto Paint Experts
- Autoglass Repair Experts
- Oil Change Centers
- Tire Shops
- Battery Replacement
- Auto Electronics
Auto Repair Loan FAQ
See below FAQ: Frequently Asked Questions by Auto Repair Mechanics
Can I qualify for auto repair loans for bad credit?
What are the best auto repair loans for bad credit?
Yes, even if you have a bad credit history, there are funding options available to you. At this time, auto repair loans for bad credit such as, short term loans, working capital, equipment financing and invoice financing are great options for those with less than average FICO scores.
How do I apply for an auto repair shop loan?
You can apply for a business auto repair loan through Upwise Capital, we make the application process very simple for you. Simply visit our online application here or call us directly to apply over the phone at (646)837-5522.
The amount of paperwork required for your application will depend on the product you are interested in or what your business will qualify for.
Step 1: Choose the right product for your auto repair business
- The first step is choosing the best financing or loan option that most aligns with your business needs. Consider what you’re using the funds for. Are you covering a short-term or long-term cost? Are you financing equipment or factoring receivables? We can assist you with choosing the best product for your needs, just give us a quick call at 646-837-5522.
Step 2: Gather & Submit Your Documents
Secondly, here is a list of documents required for most auto repair loan types:
- Driver’s license
- Voided business check
- Bank statements from the past three months
- Invoice for equipment (for Equipment Financing)
- Credit card processing statements from the past three months (for Merchant Cash Advance)
- Accounts Receivable Aging Report (for Accounts Receivable Factoring)
- Accounts Receivable (for Accounts Receivable Factoring)
- Debt Schedule (for Accounts Receivable Factoring)
Step 3: Fill Out an Application
- Third, you can begin the application by filling out our online application or calling us directly.
Step 4: Speak to an Upwise representative
- Fourth step, once you’ve submit your application, an Upwise representative will reach out to learn more about your business and explain your available options. Here we will go inform you of the repayment structures, rates, terms, conditions, etc. This way, you won’t have to worry about any hidden fees during the closing or repayment process.
Step 5: Receive your Approval
- Last but not least, if and when you’re approved for funding, you will be presented with an offer and approval. If you agree to the terms and conditions, you will receive a funding contract.
How long will it take to receive my funds?
This will depend on the product you are applying for. We have issued auto repair loans within 24 hours, as fast as the same day. The faster you provide us with the necessary documents, the quicker we can move on our end to expedite the process for you.
Approximate time for each product
Funds from auto repair shop loans such as business term loans, auto repair credit line, working capital loans, equipment financing, MCA auto repair, account receivable factoring and revenue-based business loans should appear in your bank account within 1-3 business days. For SBA loans and real estate financing, it can take up to 2-5 weeks to receive funds.
What are the advantages of small business loans for auto repair shops?
Advantages of Loans for Auto Repair Shops:
Auto repair businesses often require financing to invest in essential equipment, tools, and software to stay competitive and meet customer demands. Specialized loans like automotive repair business loans, auto repair lending from providers like Auto Repair Lending LLC, and small business loans for auto repair shops offer advantages tailored to this industry. These loans provide access to capital for purchasing lifts, diagnostic tools, best auto repair software for small businesses, and facility upgrades.
Additionally, options like an auto repair credit line or loans for auto repair can cover working capital needs, inventory, marketing, and other operational costs. Reputable lenders understand the unique cash flow cycles of auto repair shops and may offer flexible repayment terms accordingly. For those with challenged credit histories, some providers even offer best auto repair loans for bad credit situations.
What are the disadvantages of small business loans for auto repair shops?
Disadvantages of Loans for Auto Repair Shops:
While loans can provide auto repair shops with the funding needed for growth and improvements, there are potential downsides to consider. Interest rates and fees add to the overall borrowing cost, which can impact profitability, especially for smaller capital auto body shops or startups. Stringent credit requirements from certain lenders may exclude some auto repair businesses from qualifying.
There is also the risk of over-borrowing and becoming overleveraged if future revenue projections are too optimistic. Missed payments can further damage credit scores, making it harder to secure affordable car maintenance loans or other financing in the future. Thoroughly evaluating cash flow and ensuring a loan is truly necessary is crucial to avoid potential pitfalls of debt for an auto repair shop or automotive service business.
Am I eligible to apply if I already have another loan?
Yes, even if you have another loan with a bank or lender, your business may still indeed be eligible. As long as you have not defaulted, have a good payment history and underwriting determines that your business can afford to payback the loan, you can still qualify for a auto repair shop business loan.
Is it hard to obtain an auto repair business loan?
Importantly, this will depend on what type of auto repair business loan you are applying for. For example, an SBA loan is a lot harder to get approved for rather than an equipment financing loan. However, here at Upwise we offer a variety of loan options for you to choose from. In addition to this, each type of auto repair shop loan has different qualifications so that you can find the best solution that works for you.
What are the best business auto loans? What are auto repair shop loan rates?
See above, we go over the 5 best auto repair loans or you can click the link below to read more:
- Working Capital (MCA for Auto Repair)
- Equipment Financing for Auto Repair Shops
- Auto Repair Credit Lines
- SBA Loans for Auto Repair Shops
- Term Loans for Auto Repair Shops
Rates & Terms
The rates and terms depend on a wide range of factors which determine your business’ risk score. This includes: the product you’re applying for, how long you’ve been in business, credit history, use of funds, revenue & other financial factors. To determine which auto repair business loan is the best fit for your business, speak with a dedicated funding advisor to discuss your needs. Call (646)837-5522 today to compare your options.
Resources For Auto Repair Shops
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