The automotive repair business never gets dated. For as long as there are cars on the roads there will remain a demand for their repair and maintenance. In the US, more than 250,000 auto repair shops are employing more than 500,000 individuals. Last year, their revenue stream was approximately USD 69 billion. The industry forecasts annual growth of 2.5% in this sector in the coming years. Despite the arrival of service dealerships, people still prefer to go to conventional motor mechanics as service dealerships account for only 25% of this figure.
On the face of it, the auto repair business might look very lucrative but the fact remains it is a highly competitive industry. It requires capital investment from time to time to stay relevant and updated. For an average auto repair shop owner, it might not be possible to inject cash into his business by disturbing his working capital. Therefore, he will look for sources of business funding to help his business. Here we will see what business financing options he has and how best he can make use of them.
Why go for a business loan?
An auto repair shop owner requires money for one or more of the following reasons;
Buying new equipment, tools, etc.
Hiring more staff
Adding more space to the existing facility
Moving to a bigger and better location
Maintaining a steady stock of important auto spare parts
Training new staff
Acquiring new skills
Buying land for a repair shop
There can be other options too but these are the most popular reasons due to which a motor mechanic will look for business financing through small loans.
Source of fast business loans:
We will now discuss some popular modes of fast and simple business loans for motor workshops.
Conventional banks: For any kind of business loans, banks would be the first choice for just about anyone. However, in our case, this may not be the most feasible. Banks ask for heavy collaterals, they require cumbersome documentation and they charge a high rate of interest. All these conditions do not favor a small business loans for owner. Banks do not want bad credit business loans to pop up in their books so they secure themselves. If you can meet all their conditions then go ahead, but if you can’t then look elsewhere for your small business funding.
Small business Association (SBA) loan:
SBA does not dole out money to borrowers on its own. What it does is provide a guarantee to the loan up to 85%. It depends on case to case basis. A loan application routed through SBA carries a higher chance of approval and the rate of interest is also not that high.
Other non-conventional sources:
As per one research study, two-thirds of all small business owners seek other sources of lending than we discussed in the above two. They find it useful, fast, and very convenient. The rate of interest is not fixed either and depends on the personal rapport between the lender and the borrower. But since the lender is giving money with much fewer guarantees and documentation the rate of interest is usually high.
Funding via VIP Capital Funding:
VIP Capital Funding is an organization set up to be a source of small business financing. We provide fast and simple business loans for small scale organizations. We process loan applications in the minimum possible time and assist wherever needed. We do not ask for heavy collaterals or take you through long and never-ending documentations. We have a loan approval rating of nearly 100%. We provide easy approval business loans that will be just right for expanding your auto repair business if you have it already.
Our founder and managing partner Mr. Joshua Triplett is determined to help small businesses like auto repair shops. He knows that small businesses are the lifelines of any economy. Therefore, he is focused on meeting their working capital needs by giving small business loans to them. You can reach him via email at email@example.com or call him at 919-521-8459.
There are other members of his team who are all there to help you secure your business financing needs. You can contact any of them at the email ids or telephone numbers below;
Will Winston, Vice President
Cheyenne Chong, Director of Risk Management,
Kenneth Lewis, Chief Financial Officer
Carlos Hernandez Senior Vice President
We hope we will hear from you.
We give business loans to so many industries, especially related to the services sector. You will see by logging in to our website that we are given a 4.5 stars rating by the rating agency Trustpilot. Hundreds of reviews posted on our website are testimonials of our happy and satisfied customers. We are eager to make you one as well.
I am Joshua Triplett, Principal Managing Partner of VIP Capital Funding. We are a leading firm that provides consulting services to small business loans, low-interest business loans with bad credit business with easy approval.