Auto repair shops can fund lifts, diagnostic equipment and expansion with equipment financing, SBA loans, term loans, lines of credit or a merchant cash advance. The best fit depends on what you're buying, how fast you need it, and your shop's numbers. A bank loan is only one of several options.
What kinds of funding can an auto repair shop get?
Most shops have five main options. Each one is built for a different kind of need, so matching the funding to the purchase is the first big step.
- Equipment financing: pays for a specific piece of equipment, like a lift, alignment machine or scan tool. The equipment itself usually serves as collateral.
- SBA loans: loans backed in part by the U.S. Small Business Administration and made through approved lenders. They can cover equipment, real estate, working capital and more, but they take more paperwork and time. See our SBA loans guide.
- Term loans: a lump sum you repay on a set schedule. Useful for a defined project, like adding bays.
- Lines of credit: a set amount you can draw from as needed, then repay and draw again. Handy for parts inventory and slow stretches.
- Merchant cash advance: an advance against your future sales, repaid from a portion of your card sales. Fast, but usually pricier. Learn more on our merchant cash advance page.
In our experience, many shop owners assume the bank is their only option. When the bank says no, or says "wait," they put the upgrade on hold. There are often other paths worth a look.
How do you finance a new lift or diagnostic equipment?
Equipment financing is usually the most natural fit for lifts and diagnostic tools. Because the equipment backs the financing, it can be easier to qualify for than an unsecured loan.
Here's how it typically works:
- Get a quote from the equipment vendor for the exact item you want.
- Share the quote and some basic business information with a funding partner.
- Review the offer, including the term, payment amount and any end-of-term details.
- Once approved and signed, the funding partner usually pays the vendor directly.
- You make regular payments while the equipment goes to work in your bays.
Diagnostic equipment and software change fast. Before you sign, ask how long you expect to use the tool and make sure the payment term makes sense for that timeline.
What's the best way to fund a shop expansion?
For bigger moves, like adding bays, buying your building or opening a second location, longer-term options like SBA loans or term loans are often the better fit. Short-term funding usually isn't built for big projects.
Here's a simple way to think about it:
| What you need | Options that often fit |
|---|---|
| A new lift, alignment rack or scan tool | Equipment financing |
| Adding bays or remodeling | Term loan, SBA loan |
| Buying your building | SBA loan, commercial real estate loan |
| Parts inventory or slow months | Line of credit |
| Fast cash for a short-term need | Merchant cash advance, line of credit |
The SBA 504 program is designed for major fixed assets like real estate and long-lasting equipment. The SBA 7(a) program is more flexible and can cover a mix of needs. Both go through approved lenders and take longer than most other options.
What documents should you have ready?
Having your paperwork ready is one of the easiest ways to speed things up. The question we hear most from owners is what they'll need, and many aren't sure until they're asked.
Requirements vary by funding partner and product, but these are common:
- Recent business bank statements
- Recent card processing statements
- Business tax returns, and sometimes personal tax returns
- A profit and loss statement and balance sheet
- A driver's license and basic business details, like your EIN and time in business
- An equipment quote, if you're financing equipment
- A plan for how the money will be used, for larger loans
Short-term options usually ask for less. SBA and real estate loans usually ask for more. Gathering the basics before you apply saves a lot of back and forth.
How do funding partners decide on an auto repair shop?
Funding partners look at whether your shop can comfortably handle the payment. They review things like your revenue, time in business, cash flow and credit history.
Each product weighs these differently. Equipment financing leans on the value of the equipment. SBA loans look closely at your full financial picture. A merchant cash advance focuses more on your recent sales.
About credit: BRIDGEVANTI never runs a credit check. Funding partners may do a soft credit pull, which doesn't affect your credit score.
How can you make your shop's numbers stronger before you apply?
Clean books and healthy cash flow help with every kind of funding. Small fixes before you apply can make a real difference in what's available to you.
- Keep business and personal money separate. It makes your statements easier to read.
- Get your books current. Up-to-date profit and loss statements show a clear picture.
- Look at your processing costs. Card fees on big repair tickets add up fast. Lowering them can improve your cash flow. Our dual pricing program passes the processing cost to the customer who chooses to pay by card.
- Borrow for a clear purpose. Know what you're buying and how it will pay off.
Want to see how we work with shops beyond funding? Visit our auto repair page, or explore all our funding options.
Frequently asked questions
Can I finance used shop equipment?
Often, yes. Many equipment financing partners work with used equipment, though the age and condition of the item can affect the terms. Share the quote or listing early so the partner can tell you what fits.
Will applying for funding hurt my credit score?
BRIDGEVANTI never runs a credit check. Funding partners may do a soft credit pull, which doesn't affect your credit score.
Does BRIDGEVANTI charge a fee to help me find funding?
No. BRIDGEVANTI doesn't charge you any fees for funding. We may be compensated by our funding partners for referrals.
Is a merchant cash advance a loan?
No. A merchant cash advance is an advance against your future sales, usually repaid as a portion of your daily or weekly card sales. It can be fast, but it's usually a pricier option, so it's worth comparing first.
Can I combine more than one type of funding?
Yes, many shops do. For example, a shop might finance a new lift with equipment financing and keep a line of credit open for slow months. The right mix depends on your goals and your numbers.
Do I need a business plan to get funding for my shop?
For most equipment financing and short-term options, no. For SBA loans and larger expansion projects, lenders often want a clear plan for how the money will be used and how it will be repaid.