Auto repair and services
Auto repair shop financing for lifts, diagnostics and the slow weeks
A lift is the difference between one bay and two, a scan tool is the difference between a job and a referral, and parts have to be paid for before the invoice is. These are the products that fit a shop.
What financing is available for an auto repair shop?
Equipment financing covers lifts, alignment racks, diagnostic scanners and tyre machines, with the equipment as collateral, so approval leans on the asset rather than on personal credit. Working capital loans and merchant cash advances cover parts inventory, a slow month or a hire, sized on business deposits and funded in one to two days from a 500 credit score. A business line of credit fits shops whose parts spend rises and falls with the work.
What a shop’s cash flow looks like to a funder
Repair shops have two things an underwriter likes and one they watch. They like the revenue mix — card, fleet accounts and insurance work — and the fact that most of it is invoiced and paid on completion. They watch the parts spend, which is large, lumpy and paid to suppliers on short terms. A shop that shows consistent deposits and a parts account kept current is a straightforward file.
Which product fits which problem
| The problem | Product | Why it fits |
|---|---|---|
| Add a bay: a lift, rack or alignment system | Equipment financing | Full purchase amount, the equipment secures it, payment spread over the years it earns |
| Diagnostic scanner, tyre machine, A/C service unit | Equipment financing | Same structure; smaller ticket, faster approval |
| Parts inventory ahead of a busy season | Working capital loan | Lump sum sized on deposits, repaid over months |
| A slow month, payroll to cover | Merchant cash advance | Repaid as a share of sales, so the slow month costs less |
| Parts spend that rises and falls with the work | Business line of credit | Draw for the job, repay when the customer pays |
| Buying the building or a second shop | SBA loan | Longest terms and lowest cost, for a file with two years and full financials |
Why equipment financing is usually the first product
Because the lift or scanner secures the financing, the funder is underwriting the asset and the shop’s ability to pay, not the owner’s credit alone. That means a shop that would be declined for an unsecured loan can often finance the equipment that will earn its way out. The invoice or quote sets the amount, and the term is set to the working life of the asset, so a lift that will earn for fifteen years is not financed like a six-month cash gap.
Fleet and insurance work
Shops with fleet accounts and insurance work invoice on terms, which means waiting thirty to sixty days for money already earned. Receivables financing advances most of the invoice value now and settles when the customer pays, underwritten largely on the customer’s credit rather than yours. For a shop where a large share of revenue is on terms, it is often cheaper than an advance and it scales with the work.
Before you apply
- Quotes for the equipment, on the supplier’s letterhead, with the model and price.
- Three months of business bank statements, all pages, from the account the shop actually banks through.
- A list of open positions — any lease, loan or advance, with balances. Undisclosed positions are the commonest reason a shop’s approval collapses.
One application covers every product in the network. Check your options — about five minutes, three months of statements, and a soft inquiry only.
Common questions
Can I finance used equipment?
Often, yes. Used lifts and machines can be financed when the seller is a dealer and the equipment can be valued; private-party purchases are harder. The term is set to the remaining working life.
Is a merchant cash advance a good idea for a repair shop?
For a short, specific gap in a shop with steady deposits, it can be the fastest fix. For buying equipment it is the wrong tool: the equipment itself will secure a much cheaper product.
What are the minimum requirements?
For revenue-based products through RAN Funding: about six months of revenue deposited into a business bank account, consistent deposits, a credit score from 500, and the last three months of business bank statements (four in some states). Every product starts at $10,000. Lines of credit typically want a year in business and a 575+ score; term loans and SBA want two years, good credit and full financials.
How fast can I be funded?
Merchant cash advances and working capital loans commonly fund the same business day or within 24 to 48 hours of a signed offer. Equipment financing usually takes a few days because the invoice is verified. Lines of credit take days to open; SBA loans take weeks.
Does checking my options affect my credit?
No. Seeing what your file fits is a soft inquiry. A hard pull only happens if you go ahead with a credit-based product such as a line of credit, term loan or SBA loan, and you are told before it does.
Sources
- 2026 Report on Employer Firms: Findings from the 2025 Small Business Credit Survey — Federal Reserve Banks, 3 March 2026
- State Commercial Financing Disclosure Laws — Venable LLP, March 2026
See what you qualify for
One application, about five minutes, soft pull only. A funding specialist comes back with the offers you qualify for — and explains every term before you sign.