Automotive & Equipment
Business Funding for Auto Repair Shops
Auto repair shops need lifts, diagnostic scanners, alignment machines, and a deep inventory of parts to keep bays turning. A single two-post lift costs $3,000 to $10,000, and a proper scan tool runs $5,000 or more. The real challenge is that customer vehicles sit in your bays tying up space while you wait on parts, and you eat the labor cost if a job takes longer than estimated.
Common Uses
What Auto Repair Shops Use Funding For
- Purchase hydraulic lifts, tire changers, wheel balancers, and alignment machines
- Stock parts inventory to reduce downtime waiting on supplier deliveries
- Upgrade to ADAS calibration equipment required for modern vehicle systems
- Renovate or expand the shop to add more service bays
Funding Options
Best Funding Types for Auto Repair Shops
Equipment Financing
Finance lifts, diagnostic equipment, and alignment systems with the equipment as collateral. Auto shop equipment has predictable resale value through dealers like Snap-on and Hunter Engineering, so lenders offer strong terms.
Business Line of Credit
Keep a revolving credit line to purchase parts from distributors and cover payroll between customer payments. Shops that buy parts on account need cash flow flexibility when large repair orders come in.
Merchant Cash Advance
Auto repair shops that process a high volume of credit card payments qualify easily for MCAs. Use one for emergency equipment replacement or a quick shop renovation without the wait of a traditional loan.
What Lenders Look For
Qualification Notes for Auto Repair Shops
Related Industries
Related Automotive & Equipment Funding
Ready to Explore Funding for Your Auto Repair Shop Business?
Find out what you qualify for in minutes. No impact on your credit score.