The auto service landscape in North America is developing on several fronts. Based on recent research by IHS Markit Economics, there are over 37.600 automotive-related franchise enterprises active in the US, which generate $41.2 billion in revenue and provide employment for 195.670 workers.
According to Tire Business research, there are almost 5.000 franchised outlets active in the automotive service/repair business, including quick lube/oil businesses and auto parts wholesaling in addition to vehicle maintenance/repair.
Applying for Tire Financing
Merchants can turn to many institutions and companies to get loans and financing for their tire customers. However, to get tire consumer financing with the best possible terms, it’s important to find the right lender to turn to.
The higher credit score you have, the lower your interest payments will be and the more chances you’ll have to get larger amounts for a loan. Average credit or low credit suggest higher interest rates and less money upfront. As you prove yourself to a lender, you may be offered a better rate on future purchases. Also, the lender may lower rates for the terms of the loan.
Most lenders will ask you to provide things like:
- Photo identification
- Proof of your income with pay stubs or W-2 forms
- Your mother’s maiden name
- Verification of your address by showing a utility bill or copy of your lease or other legal document with your address on it
- Social Security Number
- Date of birth
- Employment information
- Previous addresses
- Information about your current debts (mortgage or rent, student loans, and credit cards)
Get Tire Financing Even with Bad Credit
Consumers with poor credit usually ask someone to co-sign on their loan since lenders are more likely to work with those who have someone with good credit to help them out. Another option they use is to put property as collateral so to increase chances of getting a loan.
If you have bad credit, the interest rates will vary from around 30-80%, even more. However, there are lenders who focus on the earning potential at work and the job history before refusing to provide the necessary financing.
With a reputable business loan provider and payment processor like First American Merchant, you can easily get approved for tire financing. First American Merchant specializes in the high risk industry and offers the most competitive rates and the best terms to merchants of all types. FAM boasts an A+ rating with the BBB and will help you enjoy only the best for your business needs.
The important thing is to know that little or no credit or bad credit doesn’t mean you have zero chances of getting approved for business funding. All you need is to research well before you find the right lender to turn to.