Industry guide
The cash-flow picture, the calendar of pressure points, and the right funding page for the problem in front of you.
✓ Checking what you qualify for does not affect your credit score.
At Merchant Fund Express, this guide sets out how the money moves in auto repair shops, when cash gets tight and which funding structures tend to fit each need.
Most auto repair shop owners are not short of work. They are short of cash on the day the bill is due. Reading the two sides of that equation is the first step in choosing the right capital.
Steady year-round with bumps before winter, ahead of summer road trips and after inspection deadlines; slow weeks follow bad-weather lulls and holiday stretches.
A funding decision works best when it starts from the calendar. Here is the usual pattern of pressure for an auto repair shop:
These are the needs we see most often, with the structure that tends to fit each one.
Usually fits: equipment financing or a term loan.
Usually fits: a line of credit that refills as you repay.
Usually fits: a term loan sized to the build-out.
Underwriting for revenue-based business funding reads bank activity: deposits, average daily balance, negative days and any open advances. For an auto repair shop, the lines that matter are:
The usual trap: buying a big piece of equipment out of operating cash and then running short on parts for two weeks. If this is your situation, say so on the application; it is better read as context than discovered as a surprise. See the published requirements for the exact thresholds. The minimum FICO is 500, and the better your credit, the better your offer.
Take an auto repair shop with about $60,000 in monthly revenue asking for $40,000. These figures are an illustration of how the published terms work, not an offer; your offer shows the actual amount, schedule and total cost before you sign.
| Illustration | Figure |
|---|---|
| Request | $40,000 |
| Monthly revenue assumed | $60,000 |
| Line of credit: 2.49% fee on a single draw of that size | $996 |
| Term loan cap: 15% of annual revenue | $108,000 (this request fits under it) |
| Merchant cash advance at an example 1.30 factor: total payback | $52,000 |
| … spread over about 26 weeks: weekly remittance | $2,000 |
| … or about 126 business days: daily remittance | $413 |
Compare any offer on total dollars repaid and on the rhythm of payments, not on a single rate. See the factor-rate calculator to run your own numbers.
Every page below is written for auto repair shops. Start with the problem you have this month.
Yes. Auto repair shops are an eligible industry. Sole proprietors can apply, the minimum FICO is 500, and the better your credit, the better your offer. Details are on the auto repair shop qualification page. Merchant Fund Express shows the exact amount, schedule and total cost in your offer before you sign.
A person reviews your revenue, time in business and bank activity, and a decision is typically same day. Approved files are usually funded the next business day. Merchant Fund Express publishes its terms and thresholds before you apply.
It depends on the need. For a lift, alignment rack or diagnostic scanner, equipment financing or a term loan tends to fit; for parts stock for the fast-moving jobs, a line of credit that refills as you repay. The structure follows the problem, so start from what the money is for.
Deposits and their consistency, average daily balance, negative days and NSFs, and any open advances. Daily card settlements that arrive close to the invoice date.
Apply with Merchant Fund Express: same-day decision, and applying takes a few minutes without affecting your credit score.
