The Wise, Fast & Transparent Solution for your business.
Auto Repair Business Loans - Grow Your Shop Today.
Do you need new equipment, mechanics or parts for your auto repair business? We have the auto repair financing tools you need to grow. Compare auto repair shop loans with Upwise.
Safe & Secure
Auto Repair Shop Business Loans: How They Can Help You
Running an auto repair shop comes with many challenges unique to the industry and is more than just repairing cars. Whether you’re an established business or fresh start up, the operation of an auto repair shop may require financing at some point to get ahead of the competition. Investment in new equipment, software, facility upgrades or advertising to acquire new customers, are just a few ways an auto repair shop loan can be used. That’s how business loans for auto repair shops can help your business grow.
Open a New Location or Upgrade Your Technology & Equipment
If you are a small business owner looking to remodel your repair shop facility or open a new location, then a auto repair shop loan can be used to finance your renovation project. Additionally, if you need a business loan for auto repair equipment, see our financing and leasing options.
What can an Auto Repair Business Loan 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 auto repair business financing, 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 a auto repair loan 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 a 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
6 Best Business Loan Options for Auto Repair Shops
Working Capital for Auto Repair Shops
The auto repair industry has unique challenges when it comes to managing cash flow and working capital. Undoubtedly, staffing, payroll, receivables and collections are some of the issues we see repair shops face. Therefore, you can use a working capital auto repair loan to bridge the gap between the time you receive payment and meeting your capital needs. Working capital loans provide a fixed amount of money, with a fixed cost which are paid back over a term of 3-18 months.
Equipment Financing for Auto Repair Shops
An equipment financing loan can be a great option for an auto repair shop loan, especially if you are looking to lease or finance a piece of equipment. Many repair shops utilize the latest technology and equipment in order to give the best repair service. Therefore, a new piece of equipment can certainly have a huge impact on the growth of the business. A business loan for auto repair equipment is usually structured as a lease to purchase or a fixed-term loan.
Lines of Credit for Auto Repair Shops
Auto Repair lines of credit have the flexibility that other loans do not. Similar to a credit card in the sense that it’s a revolving line of credit which allows you to draw funds as you need it. Also, you only pay interest on the funds that you draw. Additionally, early repayment discounts work great for auto repair shops because once you’ve finished using the money, you can pay it back and save drastically on interest.
Term Loan for Auto Repair Shops
A business term loan is another great option for auto repair shops or mechanics. Term loans are meant for those established shops. In other words, those that are showing a profit on their most recent tax returns, have been in business at least 2 years and have a good credit score. The proceeds from this type of auto repair shop loan can be used for a multitude of business purposes such as marketing, expansion or inventory.
SBA Loans for Auto Repair Shops
A Small Business Administration loan or SBA loan is a loan guaranteed by the Small Business Administration. On the contrary, the SBA is not the lender, but they do guarantee the loan through an approved SBA lender. Even so, a auto repair shop SBA loan is a highly desirable financing product, however the process is long with many paperwork requirements and high credit standards. See how an SBA loan for a healthcare business can help you.
Real Estate Financing for Auto Repair Shops
A real estate financing loan can also be a great option for auto repair business financing, especially if you have collateral to secure against the loan. Many shops we come across have equipment, buildings or invoices which can be used as an asset to secure a auto repair business loan. For instance, mechanic shop owners will use an asset for more favorable terms, resulting in a higher approval and lower interest rate. Similarly to an SBA loan, the process can be long and require lengthy paperwork.
How to Apply for an Auto Repair Shop Business Loan
Auto Repair Funding Solutions
to Boost your Success
Small business auto repair loans are easy to secure. It only takes a few minutes to apply, and Upwise will present you with options.
Applying won’t impact your credit score.
Why Upwise for Auto Repair
- We Know Auto Repair Businesses
- Trusted by Companies Like Yours
- Personalized Experience
- Fast & East Application Process
- Loan Specialists Who Are Wiser & Care
- Transparent Terms & Automatic Payments
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
Compare All Auto Repair Business Loan Options
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
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
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
Max Loan Amount
Up to 100% of Invoice Amount
Invoices
From Credible Clients
Repayment
When Customer Pays Invoice
Credit Score
Over 600+
Factor Rate
8 % - 30 %
Time in Business
Greater than 1 Year
Speed
As Fast As Same Day
Annual Revenue
150K+
Invoice Financing
Invoice financing is a type of asset-based financing that allows business owners to free up unpaid invoices. With invoice financing, you can get a fast advance of about 85% of the value of your invoices, with most of the other 15% paid to you later.
- No Need to Wait for Invoice from Customers
- Low Interest Rates
- Invoice is used as Collateral
Loan Amount
$5K to $5MM
History
Positive Payment History
Loan Term
3 Months to 2 Years
Credit Score
500+
Interest Rate
9.99 % - 24.99%
Time in Business
6 Months +
Speed
As Fast As Same Day
Annual Revenue
120K+
Short Term Loan
Short-term business loans are lump-sum loans that are designed to be paid back in less than 18 months. They can be a flexible financial tool, best used for financing short-term needs—including managing cash flow, dealing with unexpected needs for extra cash, bridging larger financing options, paying off expensive debt, or taking advantage of unforeseen business opportunities.
- Bad Credit Accepted
- Minimal Paperwork & Fast Funding
- Prepayment Discounts for Early Payoff
Loan Amount
$5K to $5MM
History
Positive Payment History
Loan Term
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 Bridge Loan
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
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