As the owner of an automotive business, you’re aware of the many obstacles that could prevent you from accessing the small business financing you need to grow. If you’re looking to stay up to date, improve your service offerings, freshen up your waiting room or gain more clients by launching a new marketing campaign, you need to find the automotive business loan that’s right for your project and for your company.
Financing for Automobile Businesses
When looking for financing for your automobile business, it’s important to understand what your business needs are and what options can provide the best fit.
A wide range of companies fall under the automobile business umbrella. From manufacturing to fueling stations to repair shops, the needs of these businesses are all different. Auto manufacturing businesses are typically large-scale companies that have well-documented finances and typically have less trouble securing a loan from a bank. Auto repair and auto parts shops are much different.
The industry is highly fragmented, and many shops are small, local businesses that survive by growing community relationships, convenience and providing great customer service. Many of these local shops have relatively thin profit margins and short-term payment structures, making it more difficult for them to obtain financing from banks. Business owners are forced to turn to other options, including cash advance products that offer high interest rates and require daily payments. These products, while used by many, can be very harmful to your business because they place a strain on your cash flow.
Fundation created a new alternative business loan product with automotive businesses in mind. Our loan amounts and repayment periods match the benefits of a bank loan, with the advantages of an innovative online process. Payments are required only twice a month.
So can Fundation help you? Below are some automotive businesses we can help finance:
If you’re running an auto repair shop, your primary need for financing will be for long-term investments such as adding another bay, hiring a new mechanic, purchasing new equipment or renovating your waiting room. For these types of projects, you need a lender that offers larger auto repair shop loans with longer terms. Fundation offers a business expansion loan product that allows you to make long-term investments in your business by reducing the amount of each payment, therefore putting less pressure on your cash flow. Best of all, we can get you the funds within a matter of days, so that you can start making improvements right away.
Tire Shops, Automotive Parts Shops and Muffler Shops
If you own a tire shop, an automotive parts business or a muffler shop, you most likely are looking for working capital financing. Many owners of businesses like yours need capital for inventory and payroll. Finding a financing option that doesn’t require you to make daily payments is key. Fundation’s small business loans offer repayment terms of 1 to 2 years for working capital in order to give owners enough time to catch up on inventory and wages before having to make payments.
Transmission Repair and Oil Change Shops
If you own a transmission repair shop or an oil change shop, your business is cyclical. Customers can postpone these services—but not indefinitely. Your biggest concern is external competition, as larger companies continue to grow and offer competitive pricing on vehicle maintenance. Businesses like yours typically need working capital to bridge the gaps during lulls in business as well as financing to stay up-to-date and competitive. Fundation offers a working capital loan product that enables you to invest in such things as improved waiting rooms and facilities, without putting your cash flow under pressure during slow times.
Paint and Body Shops
During the economic downturn, many people lost disposable income. They began putting off the vehicle repairs that supported paint and body shop businesses. Now, times are different and people are making those investments in their cars and trucks. As an owner of a paint and body shop, you want your business to have the service offerings that draw new customers. Many owners like you invest in new technicians and equipment that enables more service capabilities. Fundation offers auto body shop financing that allows you to invest in what is needed to remain competitive and keep new customers coming in.
A key reason that automotive businesses look for financing is for expansion. Adding a new location could bring new sources of revenue and improve the bottom line. If you’re considering opening a new location, Fundation offers larger business expansion loans with longer terms, compared with other lenders, so you can more easily make this big investment in your company’s future. Remember, location is key, and investing in marketing to get the word out will help bring in new customers at the beginning.
If you decide that an automotive business loan is what you need for your shop, Fundation is happy to help you get the financing you need. Contact us for more information about your funding options.
The information contained on this page is for general informational purposes only. It is not legal advice and should not be relied upon in making borrowing decisions. Fundation loans are subject to lender approval.
Fundation combines the benefits of a bank loan with the ease and efficiency of an online lender. We offer conventional loans with competitive rates to businesses with varying credit profiles. Our technology allows us to deliver capital in as few as 3 business days through streamlining the collection and evaluation of customer information and conducting the majority of the lending process electronically. As a direct lender, we use our own capital to originate and hold the loans we make, so that we can focus on building relationships with our customers. Our dedicated customer relationship model enables us to understand each unique borrower’s business. This level of service, coupled with our best-in-class products, is why many of our customers come back to us repeatedly for more capital.