# The auto business funding cheat sheet

URL: https://cheapcheapwebsites.com/cheat-sheets/auto-business-funding/
Updated October 16, 2026. Funding offered by Merchant Fund Express (https://merchantfundexpress.com/industries/); Cheap Cheap Websites builds websites and does not lend.

## The short answer
Auto businesses usually fund parts inventory, lifts, diagnostic tools, tow trucks and slow months with a merchant cash advance, a working capital loan or equipment financing. Merchant Fund Express reviews requests from $5,000 to $5,000,000 and considers credit scores from 500. The guidelines start around $7,500 a month in revenue and 3+ months in business for an advance, and about $17,500 a month and 6+ months for a working capital loan. Equipment terms are matched to the equipment's life and never run longer than 60 months at MFE.

## At a glance
- Typical amounts: $5,000 to $5,000,000 at MFE; the right size depends on revenue and the type of funding
- Revenue guideline: About $7,500/month for an advance; about $17,500/month for a working capital loan or line of credit
- Time in business: Often 3+ months (advance), 6+ months (working capital, equipment), 1+ year (line of credit)
- Credit: Scores from 500 considered; stronger credit usually means better offers
- Speed: Same-day decisions are common on complete files; funding often the next business day, never promised
- Cost structure: Advances use a factor rate; loans and equipment financing use a fixed payback over a term
- Documents: 3 to 4 months of business bank statements, ID, voided check, short application; vendor quote for equipment
- Best for: Lifts, alignment racks, scan tools, wreckers, parts stock, paint booths, car wash equipment repair
- Avoid if: You already carry several advances; review a refinance instead of adding one more

## Before you apply: checklist
- Pull your last 4 months of business bank statements, every page
- Get a written vendor quote or invoice for any lift, booth, wrecker or tunnel equipment
- List every existing advance or loan with its remaining balance
- Separate personal and shop deposits so revenue is easy to read
- Know your slow months (winter for car washes, tax season swings for dealers)
- Decide the exact dollar amount and what it pays for
- Have your ID and a voided business check ready
- Note any NSF days and be ready to explain them

## Who this covers
This sheet covers auto repair shops , body shops and collision centers, tire shops , car washes (tunnel, self-serve and detailing), auto dealers (used car lots and independent dealers), towing companies and commercial truck repair shops. They share a pattern: lots of card and check deposits, expensive equipment that has to work every day, and parts or vehicle inventory that ties up cash before a customer pays. Repair and tire shops: parts inventory, tire stock before winter, lifts, alignment machines, diagnostic scanners. Body shops: paint booths, frame machines, waiting on insurance payments for claim work. Car washes: conveyor, brushes, water reclaim systems, and the slow, rainy months. Dealers: buying inventory at auction, reconditioning costs, lot improvements. Towing companies: wreckers, rollbacks, repairs to a truck that is down, storage yard costs. Commercial truck repair: heavy-duty lifts, specialty tools and large parts orders.

## Which funding fits which need
Need Common fit Why New lift, paint booth or wrecker Equipment financing Term matches the equipment's life, max 60 months at MFE Parts or tire stock before a busy season Merchant cash advance or working capital Short term, repaid as sales come in Truck down, repair needed now Merchant cash advance Flexible credit, quick review on a complete file Ongoing parts and payroll swings Line of credit Draw only what you need, about 1+ year and 650+ credit For a deeper look at equipment, read the equipment financing guide . For general shop cash flow, see the working capital loans guide .

## Illustrative example: a two-bay shop buys a lift
Assumptions: a repair shop with about $60,000 a month in deposits buys a $24,000 two-post lift and alignment package. The funder asks for 10% down. The total financing cost is assumed at $5,400 over a 36-month term. Illustrative example Item Amount Equipment price $24,000 Down payment (10%) $2,400 Amount financed $21,600 Assumed financing cost $5,400 Total payback $27,000 Monthly payment over 36 months $750 If the lift lets the shop handle 3 more jobs a week at $250 of profit each, that is about $3,000 a month in added profit against a $750 payment. These figures are illustrations, not offers. Real terms depend on the full file review.

## Common mistakes
Stacking advances to cover a slow winter instead of planning for it. Financing equipment on a short advance when a longer equipment term would lower the payment. Comparing only the daily payment instead of the total payback. Mixing dealer floor-plan needs with shop cash flow without telling the funder which is which. Sending partial statements. Missing pages slow every review. Ignoring insurance lag. Body shops waiting on claim checks should size payments to real cash in the account, not to approved estimates.

## How Merchant Fund Express handles this
Merchant Fund Express reviews auto businesses on the industries page alongside other trades. The review looks at deposits, existing positions, time in business and credit, with scores from 500 considered. Equipment requests need a vendor quote or invoice, and a down payment may be asked. If you already carry an advance, MFE can review a refinance or buyout of it. Service is available in English and Spanish. When your statements and quote are ready, apply with Merchant Fund Express .

## Frequently asked questions
**Can a towing company get funding for a new wrecker?** Yes, towing companies commonly use equipment financing for wreckers and rollbacks. MFE asks for a vendor quote or invoice, often wants 6+ months in business, may ask for a down payment, and keeps the term at 60 months or less.

**Do car washes qualify with seasonal revenue?** Seasonal revenue does not rule a car wash out. The review looks at several months of deposits, so applying with statements that show both busy and slow months helps the funder size a payment you can carry all year.

**Can an auto dealer use an advance to buy inventory?** Some dealers use a merchant cash advance or working capital for reconditioning and lot costs. Tell the funder exactly how vehicle sales flow through the account, because dealer deposits can be large and uneven.

**What credit score does an auto repair shop need?** MFE considers scores from 500. Advances are the most flexible on credit, working capital loans commonly look for about 600+, and lines of credit commonly about 650+. Better credit usually brings better offers.

**Does commercial truck repair count as trucking?** A repair shop that services trucks is reviewed as a repair business. That is different from long-haul trucking, which many funders restrict. Describe the business accurately on the application.

Apply with Merchant Fund Express: https://merchantfundexpress.com/current-application.html?utm_source=cheat-sheet&utm_campaign=auto-business-funding