# CARSTAR Franchise Funding for Existing Collision Owners

> Funding for existing CARSTAR collision owners: insurance receivables, paint and frame equipment, parts and technician payroll, read from shop deposits.

Source: https://mfebusinessloans.com/franchise-funding/brands/carstar/ (Merchant Fund Express, updated 2026-10-21)

## The short answer

Already operating a CARSTAR collision center? Merchant Fund Express funds existing CARSTAR owners with business loans, merchant cash advances, revenue-based financing, lines of credit, equipment financing and working capital, from $25,000 to $5,000,000, and invoice factoring where insurer or fleet receivables are slow. We read how much of your revenue comes from insurance payments versus customer cards, then size payments after the franchisor's drafts, paint and parts suppliers and any existing positions. A complete file gets a same-day decision, and funding often follows the next business day.

## Who is this page for?

Owners of open CARSTAR collision repair facilities, including multi-store operators and dealership-based collision centers. CARSTAR describes its network as independently owned collision shops whose owners keep their independence when they franchise, so many owners ran the shop before joining. Parent company Driven Brands reports that its collision locations serve retail, commercial and insurance customers, which is the heart of the cash question: a lot of a collision shop's revenue arrives as insurer payments after the repair, not at the counter.
Read this with the automotive franchise funding sector guide and our auto repair industry page.

## What the franchisor publishes

CARSTAR: facts from official sources
Franchisor: CARSTAR Franchising, Inc. (source)
Parent company: Driven Brands Holdings Inc. (Franchise Brands segment) (source)
Locations: part of 1,077 collision locations across CARSTAR, ABRA and Fix Auto, almost exclusively franchised (Driven Brands 10-K, as of December 27, 2025); no CARSTAR-only US count published (source)
Published formats: Independently owned collision repair facilities, including dealership-based collision centers (source)
US franchising status: Actively franchising in the US (source)
Checked Oct 2026 against official sources: the franchisor's own franchising site, its FDD or SEC filings, or the SBA Franchise Directory. Figures change; confirm current numbers in the latest Franchise Disclosure Document. Figures we could not confirm from an official source are left out.

## Every way to fund your CARSTAR location

Already running a CARSTAR location and need capital? Merchant Fund Express funds existing franchise owners with every product below. Terms depend on the business's revenue and history.
Franchise business loan: A term loan for a planned expansion such as an added paint booth.
Merchant cash advance: Quick capital repaid from receipts when a hail event or winter surge fills the lot faster than insurers pay.
Revenue-based financing: Payments that move with deposits, a fit for a collision shop whose cash depends on when claims settle.
Business line of credit: A revolving line for parts and paint materials bought on every repair order before the insurer pays.
Equipment financing: Paint booths, frame and measuring systems, welders and ADAS calibration equipment financed against a vendor quote.
Working capital: Covers technician and painter payroll while insurance receivables are outstanding.

## Which problems do CARSTAR owners bring to a funding review?

Insurance payments lag the repair
Parts, paint and labor are spent while the car is in the shop; the insurer pays after the claim closes. For business receivables, invoice factoring turns open invoices into cash now.
Equipment to meet repair standards
Modern collision work calls for structural measuring, specialized welding and sensor calibration; see auto repair equipment funding.
Winter surges and summer lulls
Driven Brands notes collision demand is lower outside the winter months. Owners staff for winter and carry payroll through warmer months; see slow-season funding.

## Which product fits which CARSTAR need?

Need | Product | Published requirement it leans on | What to send |
Open insurer or fleet invoices | Invoice factoring | Invoices to business customers | Aging report, invoices |
Paint booth, frame or calibration equipment | Equipment financing | Vendor quote and useful life | Quote, 3 months of statements |
Parts and paint materials for open repair orders | Line of credit | Tier 1: 3+ years, FICO 650+, 8+ deposits a month | Statements, supplier invoices |
Payroll through the summer lull | Working capital | Tier 2: 6+ months, FICO 600+, $60K verifiable revenue | Statements, payroll register |
Deposits that track claim settlements | Revenue-based financing | Tier 2: minimum daily balance $800, up to 2 current advances | Statements, list of current advances |

## How does the review read a CARSTAR shop?

Entity: the company that operates the shop and holds the account; many CARSTAR owners already had an entity before they joined the network.
Deposit pattern: insurer ACH and check payments that arrive in batches, plus customer cards for deductibles and self-pay work. We read the split and the timing over three months.
Franchisor drafts: read as normal recurring obligations, with capacity sized after them.
Paint and parts suppliers: large recurring drafts for paint, materials and OEM parts, read as cost of goods.
Existing positions: equipment leases and advances are counted; a new structure can sometimes lower the combined payment.

## What documents does a CARSTAR funding review need?

About 3 months of business bank statements (PDFs from the bank) for each shop entity
The five-minute application, which starts with a soft credit pull
For factoring: an aging report of insurer and fleet receivables
A vendor quote for any booth, frame, welding or calibration equipment
Full financials only if the request is above $250,000
Merchant Fund Express accepts ITIN applicants and offers Spanish-speaking support.

## A hypothetical CARSTAR budget scenario

Take a shop depositing $160,000 a month: parts and paint $62,000, payroll $48,000, franchisor drafts $9,000, rent $11,000, a booth lease $4,000. The owner wants a frame and measuring system quoted at $72,000.
Monthly deposits$160,000
Less parts/paint, payroll, franchisor, rent, lease$160,000 - $62,000 - $48,000 - $9,000 - $11,000 - $4,000 = $26,000
$72,000 over 60 monthsabout $1,200/month before cost of funds
Share of what remains$1,200 / $26,000 = about 4.6%
Figures in this example are illustrations of the arithmetic, not an offer, quote or approval. Real terms depend on the file and the funder.

## What if you are buying or opening a CARSTAR instead?

Merchant Fund Express reads operating history. A shop that has not opened needs that history first; see buying a franchise. An independent shop with its own deposit history that joins the network is read on those deposits. Taking over an operating CARSTAR follows franchise transfer financing, and owners adding a shop can read funding a second location.

## Keep reading

Automotive franchise funding: how auto service franchises are reviewed
Franchise brands we cover: every brand page in this guide
Invoice factoring: cash from insurer and fleet receivables
Franchise equipment financing: booths, frame systems and calibration tools
Franchise payroll funding: paying technicians while claims settle

## Common questions

### Can a CARSTAR owner factor insurance receivables?

Invoice factoring is built for invoices owed by business customers, such as insurers and fleets. We look at the aging report and who owes the invoices.

### Can I finance a paint booth or ADAS calibration equipment?

Yes. Equipment financing is reviewed against a vendor quote and the equipment's useful life. Booths and frame systems suit longer terms.

### Collision work is slower in summer. Does that hurt the review?

No. We read about three months of deposits and expect seasonality.

### I own several CARSTAR shops. How is that read?

Each shop or entity is read on its own deposits, suppliers and existing payments. Terms depend on each shop's revenue and history.

### Are you affiliated with CARSTAR?

No. Merchant Fund Express is independent. We use the CARSTAR name only to identify the owners this page is for; it does not mean the franchisor endorses or works with us.

Merchant Fund Express is independent. Not affiliated with or endorsed by CARSTAR or its franchisor.

Apply with Merchant Fund Express: https://merchantfundexpress.com/current-application.html?utm_source=mfebusinessloans.com&utm_medium=franchise&utm_campaign=franchise-funding&utm_content=carstar