Whether you need auto repair shop financing to cover planned or unexpected expenses, a merchant cash advance can be a quick and simple funding solution. Here’s a look at the nitty-gritty of merchant cash advances and how you can use them for your auto repair shop business.
How Does It Work?
A merchant cash advance is a quick and effective automotive business financing solution wherein an upfront lump sum is advanced to you in exchange for a percentage of your future business receivables. Companies that provide merchant cash advances have streamlined application and fast approval processes. Business owners simply have to furnish a few details pertaining to their business to set the approval process in motion. If they qualify and agree to fund terms, the upfront advanced amount can be transferred to their business bank account within a few hours or days and they are free to use it for any business-related purpose.
How Does It Differ From Bank Loan?
Business owners who are finding it hard to secure automotive business financing from traditional money lending sources may find it worthwhile to consider a merchant cash advance. Unlike banks, companies that offer merchant cash advances do not give major importance to credit scores and do not ask for collateral. Moreover, these companies offer flexible repayment terms. With merchant cash advances, your repayments can be daily or weekly, depending on what the contract states. Since repayments are tied to receivables, the actual amount you repay each time can vary – if the business is booming, you can repay more and if the business is slack, you can repay a smaller amount.
Use Amount To Cover Planned Expenses
You may use auto repair shop financing for several planned expenses such as replacing worn equipment, upgrading to new technologies, implementing a marketing campaign, remodeling premises, or opening at a new location. These activities can have a real impact on improving services, attracting new customers, or providing a boost to a flagging business. Whether you want to purchase new equipment such as a cutting-edge diagnostic system, vehicle lift, brake lathe, or engine hoist, a merchant cash advance can be the perfect solution to cover expenses. No funding request is too small or too big for companies that provide merchant cash advances, so you don’t need to hesitate while applying for this type of automotive business funding.
Use Amount To Cover Unexpected Expenses
It’s not uncommon for automotive business shop owners to encounter unexpected circumstances that call for quick automotive business funding solutions. For example, you may be in a peculiar situation where there are a huge number of customers requesting services or an unusual number of customers requesting the same service. You may need a quick infusion of funds to quickly purchase inventory and meet increased demand. Or you may need additional working capital to pay for operational expenses such as salaries, utilities, or rent. A merchant cash advance can prove to be very handy in either situation.
Interested in availing of a merchant cash advance? For best outcomes, partner a well-established and reliable company offering quick and easy approvals!