Can You Find Business Funding for Your Auto Repairs Shop?

Finding funds for business growth can be more challenging than you imagined. So, if you run an auto repairs business, how can you get money to scale it up? Getting funds from traditional sources like banks is proving to be rather difficult these days. Today, banks are less keen to provide loans of small amounts which smaller businesses typically need. Moreover, they want collateral that is harder to arrange. Given all these roadblocks, US business funding becomes a cause for concern.

Can you get alternative business funding for your auto repair business?

Alternative funding can actually help you get money to keep your auto repairs store up and running. This industry is a robust one, generating almost $70 billion worth of revenue. But, at the same time, there will be a constant need for equipment which is costly to keep it running. Besides equipment costs, you need small business funding to pay for ongoing inventory costs and licenses/regulatory requirements. Overhead costs rarely fluctuate unless you are going through a rather busy period.

Types of alternative financing for an auto repairs shop:

• Business loans: You can try to get auto repair shop funding or small business loans to support expansion of your auto repairs shop.  Here, you will find many options, provided you have a decent credit score, show constant cash flow, and high revenues.
• SBA Working Capital Loans: This option is found to be the most useful for small business funding purposes. The main advantage of this type is it is government-supported and guaranteed by the SBA or Small Business Administration. The eligibility criteria may be more stringent making it hard for small enterprises to qualify for them.
• Business Line of Credit: This can be a flexible alternative funding option that lets you get money when you need it, up to an approved amount. All you must do is pay the premiums and interest on the amount of money you take out. But for this, you must have been in business for half a year and show reasonable revenues.
• Term loan: This alternative lending option is perfect for an auto repair business owner seeking traditional loans. The term lasts between 2 and 5 years and you can borrow and repay the amount in a shorter time-period. Funds can be obtained within only 4 weeks making it much faster than traditional bank loans.
• Working capital advance: These are attached with high costs and a far shorter time-period. So, it can be an option for businesses having a not-so-good credit score. It is also feasible for businesses that need funds faster or may have been operational for only a short while. Rates may be high but the loans can provide you with funding within only 3 days.
• Bank loans: This is the traditional way of acquiring money to grow your business or start a new business. You will however need to satisfy many criteria to get approved for bank loans. Besides a good credit history, many years of operation, and good annual revenues, you must provide collateral. But, once approved, this type of funding for your auto repair shop will need you to pay low interest rates.

Alternative Funding Group has made it possible for small business owners to get money through alternative means in a hassle-free way. Alternative Funding provides a customized experience to help you run businesses smoothly by extending loans with flexible terms and easy repayment rates.