As an automotive business owner you know, that just as cars run on gas, auto repair businesses run on cash. Many banks don’t like to approve business loans for special purposes such as auto repair, auto body, speed, motorcycle, bicycle and sport vehicles companies.
So I recommend Kabbage business loans as the best for most automotive firms to bridge the gap in working capital, quickly and easily, in just a few clicks.
Read on to learn why these are the best types of financing for auto shops. These small business loans offer the best combination of easy online application, generous approval criteria, fast funding, and reasonable rates. Also, read my detailed review of Kabbage business loans.
Getting tired of being turned down for your business loans based solely on your personal credit, that is poor or maybe even worse?
Then you will find Kabbage’s holistic approach to reviewing your loan application refreshing and encouraging. Instead of focusing entirely on your credit score they review your whole business; your sales, credit card receipts, invoices, expenses, and banking history, then approve your loan based on your actual business performance – not some number alone.
Flexible Funding – Buy What you Want and Access Daily by Credit Card or Mobile App
You and you alone decide how you want to spend your working capital money. No banker or finance company will restrict your purchases or have any say what or where you buy your equipment or supplies. So you can invest in that new garage equipment, tools, paint materials, auto parts, hire more mechanics or auto body painters and expand your auto repair and restoration services.
This is vital that you as the entrepreneur and leader of your automotive business have the flexibility to use your working capital for any business expense that will sustain and grow your auto shop. You know what is needed to take your garage to the next milestone and make money.
Funds are available for easy withdrawal either with your Kabbage Card, which works like a major credit card, the mobile phone app or online dashboard to transfer money to your business checking account – as often as once a day.
Easy Online Application: Takes Minutes and Uses Your Existing Accounts to Get Funding in Hours – not months!
You do not have to manually complete even one lousy application form or any paperwork, nor try to find those old financial statements. Yea?
Instead, Kabbage uses computer power and your business data to assess your restaurant loan application. The application process is completely online where you “connect” online accounts, both credit card payment processors (such as POS, Paypal, Amazon, Stripe, etc), bank accounts and accounting software (Intuit Quickbooks, Xero, Sage, and others). Then Kabbage assesses your business performance and sometimes in minutes, up to 48 hours, will notify you of your line of credit approval.
Once you are approved you will have access to the money sometimes within hours to your Paypal account, or at most 3 days, if you opt for having the funds transferred to your checking account. So you can hire that new auto mechanic, buy those online advertisements for your auto body services and order new speed shop or automotive aftermarket car accessories right away just in time for your busy season.
Simple Repayment Process: Auto payment Options and No Extra Fees
These short-term business loans have very clear and easily understandable repayment terms. In fact, you can use their online loan calculator to see EXACTLY how much your interest rate will be, your total loan cost, repayment amounts, and due dates.
This way you can review your repayment schedule and amounts and determine if they work with your budget before you accept the loan – helping your cash flow continue to flow. You will not be surprised by unexpected loan payments on inconvenient dates, squeezing your budget and requiring reallocating of your funds and extra accounting tasks.
Unlike other short-term alternate lenders, Kabbage does not charge you origination fees nor prepayment penalties fees, reducing your cost of capital which increases your profit margin.
Types of Business Loans & FinancingLoans for financing, working capital, equipment leasing or purchasing, payroll, rent, and marketing advertising.
|Types of Loans||Best For Financing||Right or Wrong For You?||Advantages and Disadvantages||Do you Qualify?|
|Working Capital - Lines of Credit||Funding short term needs such as supplies, marketing, payroll, rent |
Expansions such as equipment purchase or lease, new locations.
|RIGHT FOR: Businesses operational for one year or more, owner with low credit score OK|
WRONG: Startups and new businesses opened under one year (see below option for startups)
|ADVANTAGES: Fast and easy application and funding, revolving line of credit to pay down and reuse continuously|
DISADVANTAGES: Slightly higher interest rates than traditional banks, however most banks won't approve small business loans anyway 🙁
|Startup and Expansion Loans||Starting a new company, buying an existing business, expanding, new locations or purchasing a franchise||RIGHT FOR: People with 401K - IRA retirement accounts of over $50,000|
WRONG FOR: Businesses needing working capital with no expansion plans
|ADVANTAGES: Access to startup capital with no repayments, no tax penalties and no interest rates. Improved business success rate due to no drain on early profits with monthly repayments. |
DISADVANTAGES: Reduces retirement savings of individual
Check out my guide on how to start your business right with tons of useful tips I learned by successfully starting, building, and selling multiple companies.