Small Business Loan Options For Auto Repair Shops & Car Dealerships
There are many situations in which an auto repair shop could find the majority of its operational funding compromised. At any moment, a shop could be approached for a single, lengthy project or multiple projects requiring a great deal of new parts. The customer’s full payment would not be made until the job is done. But the parts cost so much money that the shop would not be able to cover payroll and other business expenses in the meantime. Should the shop turn down the job and give the customer’s business to a competitor?
Like several other industries, auto shops must often spend a lot of money to provide quality service without seeing an increase in revenue for months. Much of their inventory might not be used until the following season. And since auto body work is typically covered by insurance carriers, shops must wait for reimbursements but continue to serve their customers.
Car dealerships face similar cash flow dilemmas, since as much as 75% of their assets can get tied up in new cars and trade-ins. Profits for trade-ins are not realized until the car is sold. The industry is also highly seasonal, despite the need to pay dealership fees, maintain marketing campaigns, and offer competitive discounts all throughout the year.
Alternative Funding is proud to support our clients with Small Business Loans for Auto Repair Shops & Dealerships to help them through slower seasons. Contact us today for your FREE business funding consultation!