Automotive Business Loan

Business owners in the automotive industry often find themselves in an awkward situation: a majority of operational funding relies on customer payments, but most customers only pay the full amount when the job is done. So how do automotive businesses cover payroll and other business expenses, while working on jobs, waiting for payment?

Sometimes, business opportunities come up – maybe multiple, or lengthy projects – that could require new and expensive car parts. Would you be willing to give up those opportunities just because you don’t have working capital available and your competition does?

Auto shops often have to invest a substantial amount of cash to provide high-quality service – even without seeing an immediate increase in revenue. Because auto shops are usually covered by insurance companies, they often have to continue serving their customers as they wait for reimbursements.

Car dealerships, another sector of the automotive industry, experience similar cash flow problems. Since 75% of their assets are invested in new cars and trade-ins, profits are only realized when a car is sold.

Additionally, the car dealership business can be highly seasonal. Despite an off-season, the dealership still needs to pay dealership fees and offer competitive rates and discounts, while maintaining marketing campaigns throughout the year.

Automotive businesses could often use the help of an automotive business loan. SMB Compass has funded different types of automotive companies throughout the United States, such as:

• Towing
• Car Dealership
• Auto Repair
• Tire and Auto Parts
• Car Wash and Detailing

SMB Compass understands that auto businesses need working capital to strive in a competitive market. This is why we specialize in providing personalized automotive business loans for auto businesses in the US. We will work with you to find a financing product that fits your needs and goals.