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Business Loans for Auto Repair Shops

Get Working Capital as Fast as Today


Auto mechanics keep the world running, and we’ve been helping them do so for over 10 years. Shield Funding understands the needs of an auto repair shop, and we provide the loan products you need to run or grow your business.

There is perhaps no more recognizable mechanical trade than auto repair. Almost everyone who owns a car goes to a mechanic at least a few times a year. Without them, transportation stops. Because of this, auto repair can be a great business to get into.

But it’s not without its difficulties. In a saturated market, you need to find ways to stand out. And growing your business can require some serious cash up front for very expensive tools and equipment. We can help you secure business funding even if you have poor credit. The process is fast and easy, you can get started online, and the entire can be completed in as fast as the same day you apply. Start growing your business by applying today.

What Do I Need to Qualify?

Below is a list of the requirements to get approved for business funding with our most basic program. There may be additional factors that are considered, meeting these three requirements though gives you a very high chance of having your application approved.

How Do I Apply?

Applying has never been easier. You can either call our toll free number 24 hours 7 days a week at

 (888) 882-6117


Submit your online application by clicking apply below and entering a few basic details about your business.

Best Business Loans for Repair Shops

1. Small Business Loans

This is the “standard” and quickest funded business loan. You get a lump sum from us and pay it back in monthly installments with interest. And there are no limits on what business expenses you can use this loan to cover.

You could install a new lift to increase your capacity. Buy a new set of tools to help you service a wider variety of vehicles. Pay for training to keep your mechanics and techs up to date on the latest technology. Cover the bills during a slow season.

With loans of up to $1,000,000, we can help you with all of those things and any other business expense. And because we’re an alternative lender, not a traditional bank, we offer better terms than you’ve seen in the past. You can get an interest rate as low as 5% on these loans.

If you’ve been in business for two months or more and you bring in $8,000 in monthly revenue, you can qualify.

2. Unsecured Business Loans

Traditional lenders often ask you to put up collateral for the loan. While you have plenty of equipment and tools that could serve as collateral, betting them on your ability to pay the loan on time is a big stressor. And we don’t want that for you.

Which is why we offer unsecured business loans. No collateral required. We don’t ask you to put your business on the line just to cover expenses. And we don’t take advantage of you with hefty interest rates, either.

We offer unsecured business loans at rates as low as 9%. And you can receive up to $1,000,000 in funding. If you’ve been in business for a year and bring in at least $10,000 each month, you can qualify. And with terms from 2–36 months, you can get a loan that works well for your business.

3. Merchant Cash Advance

Everyone makes mistakes. That includes business owners. We understand that, and we don’t think you should be penalized for it. That’s why we work with business owners who have credit scores of 500 or higher.

You can still get loans of up to $1,000,000 with interest rates as low as 12%. As long as you’ve been in business for two months and you have $8,000 or more in monthly revenue, you can qualify.

Running is a business hard enough. It shouldn’t be harder because you have bad credit. If you need funds to cover hard times, grow your business, or create a small cushion to get you through to the next business phase, we can help with a merchant cash advance.

4. Working Capital Business Loans

While you can use working capital business loans for anything related to your business, they’re primarily meant to cover the day-to-day expenses that you come across in your shop.

For example, if a tool breaks, a working capital loan can help you repair or replace it. You might cover extra heating costs in a very cold winter, or salary costs of bringing on some extra help during a busy period.

Our working capital loans will help you with up to $1,000,000 at interest rates as low as 9%. If you’ve been in business for two months, bring in $10,000 of monthly revenue, and have a credit score of 650 or higher, you can qualify.

Common Ways to Utilize Working Capital for Auto Repair Shops

Auto Repair Equipment

This is the backbone of your auto repair shop. It takes a lot of expensive equipment to work on cars. To grow your business, you’ll probably need more equipment. That investment will pay off, but it requires a lot of cash upfront.

For example, a new lift, with installation, is usually around $4,000. Do you have that kind of cash laying around? If you plan on expanding your service offerings or delivering faster service, there are all sorts of other machines you may want to add.

Wheel balancers, brake lathes, welding equipment, tire changers, jacks, and other equipment adds up quickly. A simple wheel balancer might cost $1,000. Another compressor could be double that.

And all of that equipment needs maintenance. Even if you’re not expanding, you’ll put a lot of wear on the machines that run your shop. If things start breaking down, customers will go elsewhere. You need to have the funds available to have repairs done quickly.

That’s one advantage of working with an alternative lender like Shield Funding—our approval and payment process is much faster than traditional banks.

Auto Repair Tools

Beyond the major equipment needed to run an auto repair shop, you’ll also need smaller tools. If you’ve been in the business, you know that a good toolset and a rolling toolbox to keep it in can cost hundreds, if not thousands, of dollars.

A single diagnostic tool can cost $3,000 or more, and they’re specific to certain types of vehicles. If you want to expand to offering motorcycle or ATV service, for example, you’ll want a diagnostic tool specific to that type of vehicle.

And as vehicles increasingly shift to hybrid models that use a large number of sensitive electronics, you’ll need new tools to deal with them. For example, you may want a set of insulated tools to prevent shorting circuits in a hybrid or electric vehicle’s control system. Or a hybrid-specific multimeter.

There’s no end to the tools you’ll need. But investing in equipment is absolutely worth it in the long run.

Marketing and Advertising

Auto repair is a competitive business. With franchises and independent shops competing for a large (but limited) market, you’ll need to stand out to succeed in the industry. Marketing and advertising can help you do that.

Take a look at how Victory Auto Service and Glass used social media to attract more female customers. It’s a great example of how modern marketing and advertising techniques can help you increase your reach into new or existing markets.

Even if you don’t go so far as to launch a social media campaign, you’ll need to think about local advertising. Ads in the newspaper, on bus shelters, on local websites, and anywhere else you can think of are likely to bring in new business. Many shops use direct mail coupons to bring in new customers.

All of these methods cost money. If you don’t feel like you have the liquid cash to launch a marketing or advertising campaign, it’s worth taking a loan to do it. An effective campaign will pay for itself and the loan over time.

A Great Location

While marketing and advertising will help bring in customers, you’ll need more than that. You’ll also need to attract people driving by—and for that, you need a great location. A storefront on a thoroughfare will get you a lot more drive-in traffic than a location hidden away in an industrial park. If you decide to use a business loan to expand to a new location, it’s worth shelling out for a good one. And that can be expensive; up to $15,000 a month for an ideal spot. Being in the right place can help you bring in a lot more business, so it’s worth investing in. What if you aren’t planning on opening a new location? You can always improve your current store. Refinishing the floor, adding amenities to your waiting room, and improving your signage can bring customers back for more work. Interested in finding out more about our loan products? Curious to see how we can help you meet your business goals? Get in touch today!

Funding Business Dreams Everywhere

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