Auto Repair Shop Funding
Equipment financing, working capital, and MCAs for auto repair shops. Get matched with automotive lenders in minutes. Fund lifts, tools, and growth.
Auto repair shops depend on expensive diagnostic equipment, lifts, and parts inventory to keep bays turning. Equipment financing funds tooling and bay expansion, while working capital and MCAs cover parts stocking ahead of seasonal repair surges.
What Auto Repair businesses fund
- Diagnostic equipment
- Lifts and tools
- Parts inventory
- Bay expansion
Seasonal funding patterns
Winter weather damage creates seasonal repair surges; shops fund parts inventory pre-season.
Recommended funding for Auto Repair businesses
- Equipment Financing — Equipment financing uses the purchased equipment as collateral, making it one of the most accessible forms of business funding for asset-heavy industries.
- Working Capital Loan — A working capital loan covers day-to-day operational expenses — payroll, rent, supplies — giving businesses the cash flow cushion they need to operate smoothly.
- Merchant Cash Advance — A merchant cash advance delivers a lump-sum advance against your future credit card or daily revenue, repaid as a fixed percentage of daily sales.
Frequently asked questions
What funding options are available for an auto repair shop?
Auto repair shops can access merchant cash advances (repaid as a percentage of daily card transactions), working capital loans, equipment financing for lifts and diagnostic tools, and lines of credit for parts purchasing and operating expenses. The best option depends on your revenue volume, what you need the capital for, and how quickly you need it.
Can I finance a vehicle lift or diagnostic equipment?
Yes. Equipment financing is well-suited for auto repair equipment — two-post lifts, four-post lifts, alignment machines, brake lathes, and diagnostic scanners. The equipment serves as collateral, which makes approval faster and easier than unsecured loans. Terms typically run 24–60 months. Approvals can happen in 24–48 hours for established shops.
How does an MCA work for an auto repair shop?
A merchant cash advance provides a lump sum upfront, which you repay through a daily or weekly percentage of your card-based revenue. For auto repair shops that process most payments by credit or debit card, an MCA is a fast and flexible option — there is no fixed monthly payment, so repayment slows during quiet periods and accelerates when business picks up.
Can I get funding to open a second auto repair location?
Yes. Term loans and SBA 7(a) loans are commonly used for auto repair shop expansion. Equipment financing can cover the new bays independently. Lenders will evaluate your existing shop's revenue history and profitability as the basis for approving expansion capital.
What credit score do I need to get auto repair shop funding?
Requirements vary. Equipment financing lenders often work with scores as low as 580–600 when the equipment provides solid collateral. Working capital and MCA lenders focus primarily on revenue and bank deposits, with some programs available for scores in the 550–580 range. Better credit scores unlock lower rates and larger amounts.
Is there funding available for parts purchasing and inventory?
Working capital loans and lines of credit can be used for parts inventory purchases. A line of credit is particularly useful because you can draw to purchase parts, repay as jobs are completed, and draw again for the next round — keeping parts inventory funded without constantly tying up capital.
