Revenue-Based Financing for Auto Repair Shops

Funding that follows your shop's revenue

Revenue-based financing gives your shop capital up front and collects repayment as a share of the revenue you bring in. When the bays are full and invoices are getting paid, more goes back. When work slows, less does. It is built for businesses whose income moves with the seasons, the weather and the local economy, which describes most independent repair shops.

Unlike a merchant cash advance, which is tied to card sales, revenue-based financing looks at revenue more broadly, so shops that take checks, ACH or fleet payments can still be a fit.

When it makes sense for a repair shop

Revenue-based financing tends to work well when:

• Your revenue swings between busy and slow months, like winter battery and tire season versus a quiet spring.
• A good chunk of revenue comes from fleet accounts or insurance work, not just card swipes.
• You want to invest in growth, like adding a service line or a technician, without a rigid payment in a slow month.

Our auto repair cash flow guide is a good read if you are mapping out your seasons first.

What we review

We look at about three months of business bank statements to understand how revenue flows through your account. No tax returns required. We start with a soft credit pull, FICO 500+ is considered, and sole proprietors can apply.

The amount depends mainly on your deposits and the obligations you already have. For illustration: two shops with similar annual sales can receive different offers if one already carries several monthly payments.

Read the offer with your seasons in mind

Your offer shows the full repayment amount before you accept, and it lays out exactly how the revenue share is collected. No surprise costs after you sign. Hold it up against your slowest month and your busiest month and make sure both work. When you are ready, apply in about five minutes. Funding can arrive in as little as 24 hours for qualified businesses.