If You Are Looking For Auto Repair Shop Loans For Your Business, Find The Most Competitive Loan You Can

In spite of credit being tighter than in years gone by, many types of loans are still available to auto repair shops, auto body shops and auto lube centers. From normal term loans, business loans, equipment loans and merchant credit card advances, there are a wide array of options.

Car repair shops have been a staple of the economy for years.  As long as there have been cars, there have been repair shops.  Because the economy has worsened over the past few years, people are driving their cars longer than they did in years gone by and are not purchasing new cars as often. This is a huge plug for car repair shops.

On the negative side, car repair shops, auto body shops and auto lube centers are considered special purpose facilities.  Many banks do not like to lend to special purpose facilities. Let's imagine that you owned a business and your chief mechanic left for personal reasons or to start their own business somewhere else.  It's likely to assume that some people would go to the new repair shop or would go elsewhere.  With investment properties like apartment buildings or office buildings, losing a tenant won't necessarily make you go out of business.  Plus, a special purpose facility can not usually be converted to some other property.   Banks would rather do an auto repair business than a gas station, restaurant or a hotel, but they still are not as desirable as doing loans for doctors, dentists, veterinarians, apartment loans or other types of businesses. 

You have to also ask yourself what type is the best type of financing. Part of it depends on how fast you need the capital. In some cases, if you own multiple facilities, SBA and/or USDA Rural Development financing will not be an option. If you need working capital or capital to purchase inventory, an equipment lease or a merchant card advance might be the way to go. Truth be told, the best deal is usually with a smaller local bank... if they will do your deal, which in many cases, they will not. They also might be limited as to options available.


You see, it's an account executive's job to generate loans. They're not there to be a pretty face, at least they shouldn't be!  Some are quite capable, some, not so much. A good rule of thumb if you're talking to one is to just start quizzing THEM on the automotive industry and see if they know ANYTHING about it.  If they don't, are you really going to have a lot of confidence in their ability to get you financing?

Bankers ALWAYS review your transaction based on the following criteria.


It really is not more complicated than this.  They're not looking to lend because it's the popular thing to do.

Capacity refers to your and the business' ability to repay the loan. Capital refers to the money you are investing or have invested into the business.  Collateral is the security you are providing to guarantee the loan. Conditions focus on the purpose of the loan and are there certain conditions existing that will enhance or diminish the probability of paying back the loan.  Character refers to your personal credit, background, experience, references and other intangibles.

Each type of car repair shop financing has its distinct advantages and disadvantages.  Some people ONLY make their decision based on rate, term and/or points involved.  This frequently is the WRONG decision, unless you do not care about Return On Ivestment (ROI) or Cost Of Funds (COF).  By all means, don't use that calculator of yours because YOUR CALCULATOR NEVER LIES.

In looking for financing, first you want to do deal with people that understand the industry more than on a cursory level. Banks and lenders don't like to lend right now. Period.  Credit is tighter than ever. To add insult to injury, the government has required all banks to set aside more capital for potential default which in layman's term means the same banks can lend less money for the same amount of money on deposit.

Second, wouldn't you want to go to lenders that are actually doing and have recently done auto repair shop loans?  We are in the business of knowing which banks and lenders have done and closed car repair business loans as recently as a month prior.  It is possible that just because a lender did a loan for another business that they will not do one for your transaction, but logically, isn't that the best place to start?

Third, half of the battle is in the presentation.  Lenders HATE getting financing packages from borrowers, mortgage brokers, realtors and business brokers that are poorly prepared, poorly organized.  Banks now will turn down loans if they think the borrower is disorganized because of new federal guidelines that require banks to set more money aside for default if borrowers do not provide financials and compliance documentation in future years.  They can actually have a performing loan that is not a profitable loan.

Fourth, especially when you're purchasing a car repair business, know if you're paying too much! Because part of it is a cash business, many sellers go off what they business actually does as opposed to what they are declaring and you will inevitably pay too much for the business unless sellers are properly educated as to appropriate multiples for what is acceptable.

Geographic States: All States
Loan Types: Purchase, Refinance, Cash Out, Construction, Card Advances
Loan Type: Fixed Or Floating, Depending On Type Of Funding
Amortization: Up To 25 Years
Rates - Call For Quote
Loan-To-Value Ratio (LTV): Up To 85% LTV
Subordinated Debt: Seller Seconds Allowed
Buyer Down Payment: As Little As 10%
Collateral: First Position Lien Only (Asset Loans) and/or UCC Lien (Equipment)
Appraisal: MAI Appraisal Required (Lender ALWAYS To Order Appraisal)
FICO Score: Usually Requires A 650 Minimum FICO Score
Recourse: Full Recourse

To find out and pre-qualify for financing and what options are available, please send the following information:

  1. 2014 Year End Business Financials (Corporate Returns / Profit Loss Statement) 
  2. 2015 Year-To-Date Business Financials 

To learn more about us, click the About Us page or the Frequently Asked Questions (FAQ).



















car repair shop loans 











NEW 5.35%

For more Info
info@autorepairshoploans .com

gas station funding

Click Image To View A Short Video On How To Pre-Qualify For Financing

I don’t have time to read all of this! I just want to apply for a loan! Please click here.

Read here the most Frequently Asked Questions  about obtaining financing

Find out why auto repair shop appraisals are different than other commercial properties from Joe Anderson at

I prefer conventional financing. How can I qualify? Listen here:

 (202) 478-0230 V 
(202) 478-1811 F