Do you own an auto repair shop? The importance of capital is something you must be well aware of. This article will help you with auto repair shop loans and not only so you can grow your business and avoid staying behind.
Auto Repair Shop Loans
Auto repair shops are in a highly competitive and complex environment. When running your company, you’re dealing with more than repairing cars. To meet the demand in your field, you should overcome the complexities on your way, which you can’t do without having the necessary capital on your hand.
So, what business financing can you obtain for covering the costs associated with your auto repair business?
- Working Capital Loan
You can take these from banks, credit unions, or alternative sources. However, this is a go-for option for those who have fine credit.
- Business Loan
These loans are meant specifically for business purposes. They come with an added interest rate. What about short term business loans? These come with terms ranging from 3 months to 3 years. You can receive these funds and pay them back quickly.
- Small Business Administration (SBA) Loans
SBA loans are another source to consider if you have excellent credit.
- Business Line of Credit
After you’ve repaid the amount, you can apply for it again and again.
- Merchant Cash Advance or Business Cash Advance
An MCA is the lump sum you obtain in exchange for an agreed-upon percentage of your future credit/debit card sales. When applying, pay attention to the trustworthiness of the provider. Consider working with First American Merchant, an A+ alternative online lender by the BBB.
FAM specializes in the high risk field and doesn’t rely on your credit for your approval. FAM looks at your business performance without placing that much focus on your personal credit, or how long you’ve been in business, or financials. So, when seeking auto repair shop loans, make sure to turn to a business funding provider like First American Merchant in the U.S.
- Even with a score below 500, FAM can approve you
- Expect to get the financing 72 hours from the time you applied
- Hassle-free and flexible program
- FAM won’t require tax returns or financials
- Equipment Loans or Leasing
In this case, the equipment you’re purchasing serves as collateral, and the rates can be quite favorable. Equipment leasing is another option to consider if a traditional loan from a bank isn’t for you.
- Business Credit Cards
You can also apply for business credit cards, only the interest rates aren’t low.
- Trade Credit
Think of trade credit as commercial financing that you can use for buying goods/services and paying the supplier at a later scheduled date. With trade credit, you can free up money and have funds for short term growth.
- Invoice Factoring
Thanks to invoice factoring, you receive an advance on invoices quicker than your clients would pay you. The provider advances the invoice’s outstanding balance once you submit to it in exchange for a nominal fee.
In the auto repair industry, the need for expensive equipment or inventory is something merchants often deal with. So, funds for your automotive or mechanic shop can be of great help. Consider working with a respectable alternative online lender for quick access to financing.