Auto repair shop funding
that opens the next bay.

Independent auto repair sits in an awkward middle of the small business universe. The shop generates real, recurring cash flow — most healthy two-bay shops clear $700K to $1.5M annual revenue with margins north of 25%, and high-end specialty shops do better. But the working capital demands rise faster than the revenue: every model year adds new diagnostic complexity, ADAS calibration becomes mandatory across more procedures, parts pricing volatility forces larger inventory buffers, and the gap between job intake and final payment grows as more work goes through warranty programs and insurance carriers rather than straight cash transactions. Independent shops that grow are the ones that can absorb each of those increases without missing a beat. Independent shops that stall are the ones whose capital infrastructure stops keeping up.

Banks underwrite auto repair on a generic small-business model that doesn't recognize how the cash actually moves. They penalize the seasonal swings, the inventory builds, the timing gaps between completed work and customer pickup. They want collateral on equipment that depreciates faster than the loan amortizes. They demand multi-year tax returns from an operator who reinvests heavily and shows minimal net income on paper. Goliath underwrites from the operating bank statement — the variable that actually predicts whether the shop pays back — and funds in days rather than months. The structure was built explicitly for the way independent repair businesses receive money.

What we fund inside a repair shop

Bay expansions and second-location buildouts including lifts, alignment racks, tire machines, balancers, brake lathes, and the underlying buildout cost. Diagnostic infrastructure refreshes including OEM scan tools, J2534 reprogramming subscriptions, ADAS calibration equipment, smoke machines, and the connectivity stack to support all of the above. Body and paint equipment including frame machines, paint booths, sanders, and prep tools. Inventory builds for high-volume parts categories like tires, brake systems, oil and fluids, batteries, and consumables. Marketing spends across digital, direct mail, and fleet customer acquisition. Acquisitions of independent competitors and small roll-ups of two to five shops. Buyouts of departing partners or technicians taking equity exits. Payroll bridges through the post-holiday slow weeks. Emergency capital when a major fleet customer's payment stretches past terms.

What we don't ask for

We don't pull hard credit during pre-qualification. We don't pledge equipment titles against advances under $250K. We don't require tax returns or P&L statements from your accountant. We don't notify your parts vendors, your insurance carrier relationships, or your franchise office. We don't ask for shop management system data, repair orders, or customer information. We underwrite from operating bank statements and the texture of the shop's deposit and outflow pattern — the variables that actually predict repayment.

A healthy auto repair shop's bank statement looks different from any other small business. Card-processing batch deposits arrive most evenings with a wide variance between weekday and Saturday volume. Insurance carrier remittances cluster around mid-month and end-of-month for collision and DRP shops. Outflows concentrate around weekly parts orders from three to five primary distributors, bi-weekly payroll runs heavily weighted toward skilled technician labor, monthly software and subscription debits (shop management systems, parts catalogs, scan tool subscriptions, ADAS data services), and irregular larger payments for tire orders, equipment maintenance, and franchise fees. Generic underwriting algorithms read this profile as volatile. Our underwriters read it as a working shop and price accordingly.

The strongest auto repair files share a few signatures: consistent card-processing deposits with a recognizable weekend lift, parts vendor relationships that show recurring patterns rather than one-off purchases, technician payroll outflows that scale predictably with revenue, low NSF count even during a soft week, and a card volume floor that holds through seasonal lulls. We can underwrite around messier files too — shops with one weak quarter, shops carrying a small prior advance, shops in active IRS payment plans. Less-clean files price differently but rarely fall outside what we can structure.

Auto repair segments we fund every week

Independent general repair shops from $400K to $5M annual revenue running two to ten bays. Transmission specialists and drivetrain shops with longer ticket cycles. Brake and muffler franchise units and independents. Quick-lube and fast-service operators with high transaction count and lower ticket. Tire and wheel shops with heavy inventory commitments. Body and collision shops with DRP relationships across major carriers. Mobile mechanic and on-site fleet repair operators. Performance and tuning shops including dyno operators. Classic restoration shops with high-ticket, long-cycle jobs. Diesel and heavy-duty repair operators serving fleet customers. Dealership service departments operating as standalone profit centers. Franchise units of national repair brands.

Common auto repair funding scenarios

A two-bay shop wants to add a third bay and an alignment rack to capture work it currently turns away. We fund the buildout and the equipment in a single position and the new bay pays for the capital inside twelve months. A collision shop has $180K of completed work awaiting carrier remittance and parts orders for the next week need to be paid Friday. We bridge the gap and the position retires inside the remittance cycle. A diagnostic refresh including ADAS calibration totals $90K and the OEM tool subscriptions need annual renewal at the same time. We fund the full refresh and the shop adds two new revenue lines (ADAS calibration and OEM reprogramming) inside the same quarter. A neighboring competitor announces they're closing and offers the equipment, inventory, and customer database for $250K cash. We fund the acquisition inside ten days and the acquiring shop absorbs the customer base before they shop around.

The shape repeats: a specific capital project, a specific operating return, repayment math that absorbs the cost inside the new revenue. The shops that scale into multi-location groups are the ones with capital access that matches the speed of opportunity. That is what we provide.