3 Financing options for your auto repair business

September 12, 2022

It's true that owning and operating an auto repair business comes with challenges, but every challenge is also an opportunity. That's exactly why small business owners continue to invest their time, energy and money in this sector. For that reason, whether you are looking to attract new customers and increase sales or expand your business, an auto repair business loan can fill gaps in working capital and give you the extra boost you need.

Auto repair shops can come with high costs. To keep the business running, you'll need to purchase expensive equipment like lifts and air compressors, build inventory, and meet ongoing licensing and regulatory requirements.


You also need to pay employee salaries and rent for the space, while keeping your cash flow stable, so you can meet all of your obligations.

If you are struggling to meet any of these expenses, or if you need funds to expand your business, some of these financing options may be your best partner in doing so.

1. A business line of credit: With a business line of credit, you have access to flexible, revolving funds when you need them for your business. With a line of credit, you borrow the money you need, pay off the balance and can use the line of credit again. Most auto repair shop owners use a line of credit to cover upfront inventory costs or to bridge cash shortages between invoices.

2. A short-term business loan: Many online lenders offer short-term business loans for small businesses like auto repair shops. With terms ranging from three months to three years, this type of financing allows a repair shop to borrow capital and pay it back quickly - often making the overall cost lower than a longer-term loan. Taking out a short-term business loan with an online lender can be much quicker than a traditional loan from a bank - typically, the borrower can apply within minutes and receive the money within a few days. Many auto repair businesses use a short-term business loan to finance improvements to their shop, purchase inventory, or conduct marketing and advertising campaigns.

3. Equipment financing: working capital financing is another way to finance the purchase of working capital (in addition to using a loan or line of credit). Any tangible asset used in business operations can be considered business equipment. For an auto repair shop, this could be a lift, a tire changer, or an alignment machine. Many auto repair shops use equipment financing to purchase new equipment for their shop without tying up their existing capital.


Applying for auto repair business loans from banks is a complicated process that requires a lot of time and paperwork. More importantly, the chances of approval are slim for most applicants. Tru Capital offers small businesses a quick and easy way to apply for business financing. We can match you with the loan provider that best fits your profile.

We are committed to redefining small business lending by offering a wide range of financial products. If you have any questions or would like more information, please call or text us at 917-243-3113.