Revenue-Based Financing For Automotive Businesses

As one of the leading revenue-based financing providers, Mantis Funding will work with you to create a custom-made plan for your success to support your automotive business dreams.

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What You Need To Know About Automotive Business Funding

Costs and expenses for automotive businesses like repair shops continue to increase. From supply chain disruptions to inflation, maintaining an automotive business requires the right kind of funding and financing to succeed. The expenses associated with electric vehicles are creating even more cash flow problems for automotive repair businesses, as they require expensive technology to purchase and maintain — don’t worry, though: Mantis Funding is here to offer automotive business funding, providing the support you need to fund your auto repair shop and thrive.

How Automotive Funding Can Help Your Business

There are many benefits to financing an auto repair shop. Business owners can pour funds into a variety of different areas to help their business to grow.

Has your equipment seen better days? You can use the funds to replace old machinery or purchase more car lifts. Or, use the funds to expand your auto repair shop if you need more space. Revenue-based financing can be put toward payroll, rental costs, and other regular expenses. Automotive business funding can also help you to hire more qualified staff and expand your current training programs.

Automotive Business Funding Process

Mantis Funding understands the unique needs of automotive businesses and offers a streamlined funding process to get you the capital you need to thrive. Here’s a breakdown of the steps involved:

  1. Quick and Easy Application: Our online application process is designed to be fast and convenient. Simply provide some basic information about your business, including your financial history and funding goals. There’s no lengthy paperwork or complicated procedures involved.
  1. Eligibility Check: Once you submit your application, our team will conduct a quick eligibility check to determine if your business meets our basic criteria. We have a minimal credit score requirement, so even businesses with less-than-perfect credit may qualify.
  1. Funding Approval: Our streamlined approval process allows us to provide funding decisions within hours, not days or weeks – which means a faster response so you can move forward with your plans without delay.
  2. Revenue-Based Financing Solutions: If approved, we’ll work with you to determine the most suitable funding option based on your specific needs. Our revenue-based financing solutions offer flexible funding solutions tailored to the automotive industry.
  3. Transparent Agreement: We believe in clear and transparent communication. Before finalizing your funding, you’ll receive a detailed agreement outlining the terms and conditions. This ensures you understand all aspects of your funding arrangement upfront.
  1. Fast and Secure Funding: Once the agreement is signed, we’ll work diligently to get your funding deposited into your business account quickly and securely.
  1. Ongoing Support: Our commitment to your success goes beyond funding. Our team is available to provide ongoing support and answer any questions you may have throughout your journey.

Throughout the entire funding process, Mantis Funding focuses on providing a fast, hassle-free experience. We understand the importance of access to capital for automotive businesses, and we’re here to help you secure the funding you need to fuel your growth.

Required Documentation for Automotive Funding

Mantis Funding strives to make the application process for automotive business funding as smooth as possible. To expedite your application review, please be prepared to submit the following documentation:

  • General Business Information:
    • Completed Application Form: This form will gather essential details about your business, including its legal structure, ownership information, and contact details.
  • Financial Documentation:
    • Bank Statements: Through our application page, you’ll also be able to connect your business bank account with Plaid to securely provide bank statements (typically 3-6 months) which will provide an overview of your business’s cash flow and financial health.
    • Tax Returns: Your most recent federal and state tax returns offer valuable insights into your business’s profitability and tax obligations.
    • Financial Statements (if applicable): For established businesses, audited financial statements like a balance sheet, income statement, and cash flow statement may be required.
  • Additional Documents (may vary depending on specific circumstances):
    • Business Licenses and Permits: Copies of any relevant business licenses or permits required to operate your automotive business in your state.
    • Proof of Ownership: Documentation verifying any business assets, such as vehicles or equipment that you may have.
    • Merchant Account Statements (if applicable): If your business accepts credit card payments, recent merchant account statements can demonstrate your processing volume and financial activity.

Please note:

  • Specific requirements may vary depending on the type of automotive business (dealership, repair shop, parts supplier, etc.) and your state’s regulations.
  • Contact Mantis Funding directly if you have any questions about required documentation or have a unique business situation you wish to share with our team.

Credit Qualifications for Automotive Business Funding

At Mantis Funding, we understand that building a strong credit history takes time and dedication. That’s why we take a more holistic approach to evaluating your eligibility for automotive business funding. Here’s what we consider:

Focus on Business Viability:

Our primary focus is on the overall health and future potential of your automotive business. We’ll analyze your business plan, financial history, and cash flow to assess your ability to repay funding. A strong business model with a clear path to profitability can outweigh a less-than-perfect credit score.

Minimum Credit Score Requirement:

We have a minimum credit score requirement to ensure a baseline level of creditworthiness. However, this requirement is significantly lower than traditional lenders, making our funding accessible to a wider range of automotive businesses.

Alternative Qualifying Factors:

If your business credit score falls below our minimum requirement, we may consider alternative qualifying factors, such as:

  • Time in Business: A longer track record of successful operation demonstrates stability and experience.
  • Positive Cash Flow: Consistent and positive cash flow indicates your ability to manage your finances effectively.
  • Strong Collateral (if applicable): Owning valuable business assets, such as vehicles or equipment, can provide additional security for the funding agreement.

Applications from All Credit Backgrounds Welcome:

Mantis Funding believes that access to capital shouldn’t be limited by credit score alone. If you have a viable automotive business with a solid plan for growth, we encourage you to apply regardless of your credit history. Our team will work with you to understand your unique situation and determine if our funding solutions are a good fit for your needs.

Transparent Communication:

We understand the importance of transparency. During the application process, we’ll clearly communicate our credit score requirements and any alternative qualifying factors that may be considered — allowing you to make informed decisions when you’re ready to apply for funding with Mantis Funding.

Frequently Asked Questions About Automotive Business Funding

Finding funding to expand your automotive business might seem like a daunting task. Mantis Funding is here to answer all your questions and provide you with hand-tailored revenue-based financing solutions.

How much financing can an automotive business qualify for?

Mantis Funding provides revenue-based financing for $5,000 to $500,000.

How do I get funding for an auto business?

When it comes to securing funding for an auto business, most lenders have a list of requirements you’ll need to meet. They may require your credit score, yearly revenue, company age, business plan for funds and tax returns.

At Mantis Funding, our eligibility requirements are simple:

  • Your business has been operational in the U.S. for at least 6 months.
  • You own at least 50% or more of the business.
  • You can pass a minimal credit score check — low credit scores are ok!

If you meet these basic requirements, then we invite you to fill out an application for funding so our representatives can get started on the approval process.

Why choose Mantis Funding for automotive business funding?

Unlike typical small business loan requirements, the revenue-based financing that Mantis Funding provides is a hassle-free process with quick turnaround times. Our combination of experience, industry knowledge and great customer service make us the perfect partner for your business. We offer flexible repayment structures to suit your business needs. Once the terms have been finalized and you accept the offer by signing the financing agreement, we will complete the bank verification and funding call process so that you can quickly receive the funds in your business bank account within one business day.

How can I improve my auto business with automotive business funding?

There are a variety of ways you can grow your business. With automotive business funding, you can:

  • Update machinery and equipment in your shop
  • Cover insurance premium costs
  • Invest in new customer technology
  • Expand your marketing initiatives
  • Hire and train staff
  • Expand your inventory stock
  • Increase payroll funds
What types of financing are available for auto businesses?

There are a few different types of financing available for auto businesses. Options include:

Small Business Loans: Small business loans can be provided to you through a bank or another alternative lending institution. Your credit score, revenue streams, and current debt may play a role in securing a small business loan.

Business Line of Credit: Auto business owners can take out a line of credit as one financing option. They would then pay interest rates on the amount that they actually borrow and make payments back over time.

Small Business Administration (SBA) Loans: SBA connects small business owners to reputable lenders that generally offer lower interest rates and better agreement terms. The different SBA loans include 7(a) loans, 504 loans, and Microloans. 7(a) loans have no minimum amount, which makes them ideal for auto business owners. They have a maximum limit of $5 million. Microloans are great for financing equipment and machinery while 504 loans have a fixed rate over a long period of time.

Equipment Financing: Equipment financing allows you to finance fixed assets that are integral to your store’s operations.

What’s the difference between revenue-based financing and a loan?

Revenue-based financing is an alternative form of financing that exchanges working capital for a set amount of the business’s future revenue streams. Various sectors like the trucking, retail store, and automotive industries can all benefit from revenue-based financing when they need to grow their business in a short amount of time — all with fewer regulations than are commonly associated with traditional lenders. Companies don’t have to give up any equity either, as is typical with venture fundraising.

The amount of financing that a business qualifies for will ultimately be based on the total monthly revenue that it generates. Repayment structures are either daily or weekly, and they are directly debited from the business’ bank account.

View our How it Works page to learn about the three main differences between a traditional business loan and revenue-based financing.

Other Industries We Service

We service a wide variety of industries, including retail, medical, and liquor stores, as well as select franchises. Industries range from trucking businesses to nightclubs. We also service other industries that are not included on this list and invite you to fill out an application for funding so our representatives can reach out to you. We understand the challenges of the market and cash requirements for business owners and will be able to walk you through every step of the way.

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