Typically, a business requires resources to remain competitive, run smoothly, and generate more profit. Sometimes, people need more finances to start or expand their businesses. For instance, an auto repair shop needs funding for you to stock the right parts, have the needed equipment, and for general expenses. Although seeking financing is an ideal solution, it is crucial to focus on various aspects, including your credit score, business size, and need for collateral. The following options are available for auto repair shop financing.
Commercial banks offer credit for various business types. Generally, they have both long-term and short-term loans. Although their interest rates may be lower when you qualify for a loan, including auto repair shop financing, they have some limitations. For instance, their lending guidelines are generally too strict, especially for new and small businesses, which makes many businesses not qualify for their products.
Small Business Association (SBA) Loan Programs
This government agency links small companies to various trusted lenders associated with the lender, including banks, community development organizations, credit unions, and micro-lending institutions. The SBA loan program guarantees the repayment of the part of the loan issued by the lender, averting some of the risks for the institutions.
When you opt for auto repair shop financing based on this program, the agency regulates the cash you can borrow and guarantees lower interest rates than other lenders. Government backing usually encourages lenders to offer loans that a business may not have qualified for.
Alternative Lender Loans
Nowadays, many businesses opt for alternative financing options due to their fast and flexible nature. Alternative lenders provide various specialized financial solutions for their clients, including auto repair owners who may not qualify for SBA loan programs and bank products. Their application process isn’t demanding, with only a few documents required. Auto repair shop financing from alternative lenders is ideal for emergencies that can negatively affect your business operations.
Are you seeking suitable auto repair shop financing for your auto repair shop? At Monterey Commercial Capital, we have exceptional products for our clients. Reach out to us today and let us be part of your financial success.