Quick answer: Auto repair and body shops most often use equipment financing for lifts, diagnostic scanners and alignment machines, a line of credit for parts inventory and payroll, and a term loan for adding bays or opening another location. Established shops with steady deposits can often be funded the same day by a non-bank lender.
Why auto repair shops need financing
Newer vehicles, including hybrids and EVs, need expensive diagnostic tools and training. Parts costs rise, insurance and fleet customers may pay on terms, and adding a bay or technician takes money before it brings in more work.
Common uses for auto repair shop financing
- Vehicle lifts, alignment machines and tire equipment
- Diagnostic scanners and EV/hybrid tools
- Parts inventory
- Adding service bays or a second location
- Hiring and training technicians
- Paint booths and body shop equipment
Financing options for auto repair shops compared
| Option | Best for | Speed |
|---|---|---|
| Equipment financing | Lifts, scanners, paint booths | A few days |
| Line of credit | Parts inventory and payroll | 1–3 days |
| Term loan | New bays, expansion, second shop | Same day to 2 days |
| SBA loan | Buying a shop or property | Several weeks |
What lenders look at for auto repair shops
Lenders look at your monthly card and cash deposits, any insurance or fleet receivables, existing equipment payments and time in business.
What you need to qualify with Brookestone Funding
- 2+ years in business
- $30,000+ in monthly revenue
- 600+ credit score
- Recent business bank statements
Qualified auto repair shops can borrow $10,000 to $2,000,000 with terms up to 36 months and rates starting at 8%. Complete applications submitted early in the day can be funded the same day.
Tips before you apply
- Get quotes for equipment before you apply.
- Have recent bank statements that show steady service revenue.
- Track how many cars you turn away for lack of bays or technicians — it supports the case for expansion.
- Compare offers on the total amount you’ll repay, not just the rate, and size the payment to your slowest month.
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- Can You Get a Business Loan With a 600 Credit Score? Yes — Here’s How
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Frequently Asked Questions
Can a auto repair shop get a business loan with a 600 credit score?
Yes. Brookestone Funding works with auto repair shops that have a 600+ credit score, 2+ years in business and $30,000+ in monthly revenue.
How fast can a auto repair shop get funded?
Qualified auto repair shops can often be funded the same day with a business term loan, or within 1–3 days with a line of credit, once the application and recent bank statements are complete.
What is the best way to finance a car lift or diagnostic equipment?
Equipment financing is usually best for a specific tool or lift. If you are also paying for installation or training, a term loan can cover everything in one loan.
Can a body shop get a line of credit for insurance claim delays?
Yes. A line of credit helps cover parts and payroll while waiting on insurance payments.
Ready to see what your auto repair shop qualifies for? Brookestone Funding offers business term loans, lines of credit and SBA loans from $10,000 to $2,000,000, with same-day funding available for qualified businesses. Apply in minutes, see our business loan options, or call 212-258-0602.
