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.
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.
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.
Mantis Funding provides revenue-based financing for $5,000 to $500,000.
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.
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.
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
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.
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.
January 10, 2023
February 01, 2023
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