Auto Business Loans & Financing for Commercial Auto Repair Shops
Own an auto repair shop or auto parts business? We could provide your small business with a personalized auto business loan program!
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Use Cases
How To Use Auto Business Financing
When you get auto business financing, the type of loan will determine how you can use it. Some are multi-purpose, while others can only be used for something like inventory or buying a business vehicle.
Learn Why Us-
Expansion
Expanding your auto repair shop business is easier when you have the right mechanic shop financing. It’s one of the many ways to use auto business financing.
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Equipment
Buying equipment like a lift or specialty tools is made easier with auto business loans. Make sure to get the right type of lending to use for your business needs.
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Hiring
Good mechanics make an auto shop great. Using an auto business loan can help you hire the right team to get your business rolling.
Minimum Eligibility Requirements for Automotive Business Loans & Financing
Grow your automotive business without hurting your cash flow. When you meet these minimum requirements, you may be eligible for a loan with Fora Financial.
| Time in Business | Minimum 6 Months |
|---|---|
| Business Annual Growth Revenue | $240K+ Annual Revenue |
| Business Checking Account | Yes |
| US Citizen/Based Company | Yes |
| FICO Score | 570+ |
| Other Financing | None |
| Bankruptcies | None open |
How Loans & Financing Work for Auto Repair Shops
Getting auto repair business loans is important for many entrepreneurs who want to start this kind of business. The cost of a shop, tools, and inventory can all be financed using auto business loans. Once you apply and get approved, you may be able to choose from unsecured business loans, a merchant cash advance, a business line of credit, equipment financing, and even SBA loans.
Case Studies
Maintaining Momentum
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Funding Amount: $1,000,000
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Behavioral Health: Behavioral Health
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Use of Funds: Marketing Continuity
Delivering Certainty
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Funding Amount: $1,000,000
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Industry: Manufacturing — Transmission Solutions
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Use of Funds: Liquidity Support, Bridge Funding
Bridging Gaps
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Funding Amount: $150,000
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Industry: Manufacturing
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Use of Funds: AR Bridge, Working Capital
Green Growth
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Funding Amount: $125,000
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Industry: Landscaping
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Use of Funds: Working Capital
Scaling to Meet Surging Demand
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Funding Amount: $1,000,000
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Industry: Manufacturing
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Use of Funds: Facility Launch, Labor, and Materials
Strategic Recapitalization
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Funding Amount: $5,000,000
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Industry: Manufacturing — Building Products
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Use of Funds: Partner Buyout & Debt Recapitalization
Designing for Expansion
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Funding Amount: $250,000
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Industry: Interior Design
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Use of Funds: Market Expansion, Team Growth
Stocking Up for Growth
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Funding Amount: $60,000
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Industry: Retail
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Use of Funds: Inventory Purchase, Debt Consolidation
What Sets Us Apart from the Rest
What Are Auto Business Loans or Financing?
An auto business loan is a loan to help business owners start up an automotive business like an auto repair shop. They can also be used to help businesses purchase a vehicle to use for business needs. Because each business is unique, there are many different loan products to help.
FAQs About Auto Repair Shop Financing & Auto Business Loans
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Before you get an auto shop loan, it’s best to have a plan in place to help you determine your most critical business needs. Doing this will ensure that you use your auto business loans to their full potential for everything from hiring new staff to buying supplies or expanding your shop.
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Lending for an auto repair shop can look like term loans, business line of credit, working capital loans, and even cash or capital advances. Each of these loans come with different terms and loan amounts based on qualifying factors.
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Reach out to a lender to apply for auto business financing. It’s best to have all your financial information for your business including income, expenses, assets, and profits for a year or more. If you’re just starting out, lenders may look at your personal credit to make a determination.
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Businesses that are profitable are more likely to get approved for lending. If you’re just getting started, work on keeping your credit score in good standing, have a thorough business plan, and have money to invest in it yourself. These will help you get lending for your auto repair shop business.
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Approval times vary by lender, but in many cases, business auto financing loans take about 24 to 72 hours for approval (or rejection) and funds are typically disbursed shortly afterwards.
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Yes, some auto business loans can be used to finance the purchase of business vehicles, including tow trucks, service vans, or mobile repair units.
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It depends on the type of loan. Some automotive business loans (like equipment financing) require collateral, while others, such as unsecured business loans or lines of credit, do not.
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Yes, business loans for auto repair shops can be used to fund marketing efforts, such as digital advertising, local promotions, and updating your website to attract more customers.
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Options other than business auto loans include applying for a business line of credit, SBA loans, or securing equipment financing. All of these options for expanding an auto repair business can be helpful in adding locations, hiring staff, or upgrading equipment.
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Some lenders of automotive business loans offer financing options in the event you have bad or low credit scores. However, interest rates may be higher. Having strong revenue and business performance can improve your chances.
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Yes, inventory financing is a common option for auto parts businesses, allowing them to stock up on essential products without tying up working capital.
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Repayment terms on automotive business loans vary, but typically range from 6 months to 5 years, depending on the type of business auto financing you have, the amount borrowed and the lender's policies.
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Many commercial auto financing lenders allow early repayment, but some may charge prepayment penalties. Be sure to review the terms of your automotive business loan before signing the agreement.
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If a personal guarantee is required, failure to make payments on your business auto financing could impact your personal credit. However, making on-time payments can help build your business credit.
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