Industries

Working Capital and Merchant Cash Advance for Auto Repair Shops and Dealers

Repair shops, body shops, tire centers and dealers need fast capital for lifts, diagnostic tools, parts and payroll. Apex Funding Services compares merchant cash advance and bridge funding offers from multiple funders with one application, with decisions often within 24 to 48 hours. We are a broker, not a lender.

Featured option: working capital through a merchant cash advance

A merchant cash advance gives you a lump sum in exchange for a share of future card and bank receipts. Shops where most tickets are paid by card at pickup are a natural fit, and offers are sized on your deposits rather than credit alone.

Why owners choose it:

  • Speed: decisions often within 24 to 48 hours, with funding soon after approval

  • Sized on revenue: offers are based mainly on your deposits, not just your credit score

  • Repayment matched to how you get paid: split funding or lockbox for card-heavy businesses, so payments rise and fall with sales, or a fixed ACH payment for businesses paid by check, ACH or invoice

  • Limited paperwork: usually bank statements and a short application, with no real estate collateral. Most funders do ask for a personal guarantee of performance

Common uses:

  • Lifts, alignment machines and diagnostic scanners

  • Parts inventory and tire stock

  • Payroll for techs during slow weeks

  • Bay expansions and facility upgrades

How repayment works: split funding, lockbox or ACH

  • Credit card split funding: your card processor automatically sends an agreed percentage of each day's card batch (the holdback) to the funder before the rest settles to you. Payments rise and fall with sales.

  • Lockbox funding: card receipts are deposited into a controlled account, the funder's share is taken out and the balance is passed to you. Used when your current processor cannot split payments.

  • ACH: a fixed daily or weekly debit from your business bank account.

Fit for auto repair: good when most tickets are paid by card. Split funding or lockbox works well for retail repair. If a large share of revenue comes from fleets or insurers paying by check or ACH, a fixed ACH payment is usually a better match.

Split funding usually means processing with a processor that works with the funder. Before switching, check for early termination fees on your current processing agreement and compare total processing cost as part of the offer.

Bridge funding

Bridge funding is short-term capital that covers the gap until money you are expecting arrives, such as a customer payment, a loan closing or your busy season. It is typically structured as a short-term advance or loan and repaid when the expected cash comes in. Common bridge situations:

  • Waiting on insurance companies to pay for body work

  • Fleet accounts that pay on net 30 or longer

  • Bridging until equipment financing or a bank loan closes

  • Covering a cash gap after a large unexpected repair to your own equipment

All your options at a glance

We are not tied to one product. Here is how the main options compare for auto repair shops and dealers:

  • Merchant cash advance (working capital): fastest and easiest to qualify for, and usually the most expensive. Best for short-term needs with a clear payback.

  • Revenue-based financing: similar to an advance, repaid as a percentage of revenue, sometimes at a lower cost for stronger businesses.

  • Short-term working capital loan: a fixed amount with fixed daily or weekly payments over 6 to 24 months.

  • Equipment financing: usually cheaper than an advance for a single large equipment purchase.

  • Revolving line of credit: for shops with steady deposits and fair credit.

  • Invoice factoring and AR lines: a fit for fleet and insurance receivables.

  • Floor plan and asset-based lending: how dealers typically finance vehicle inventory.

Traditional alternatives

If your business has the history and credit for it, traditional financing is usually the cheapest money available:

  • SBA 7(a) loans: up to $5 million for working capital, equipment, expansion or buying a business, with terms up to 10 years for working capital and equipment

  • SBA 504 loans: long-term, fixed-rate financing for real estate and major equipment

  • Bank term loans: a lump sum repaid monthly over several years

  • Bank lines of credit: draw and repay as needed, paying interest only on what you use

  • Bank equipment loans: the equipment itself secures the loan

These cost less, but they take longer, often 30 to 90 days, and usually require two or more years in business, good personal credit, tax returns, financial statements and sometimes collateral. If you qualify, we will tell you, and we can refer you to SBA and bank lenders. A common approach is to use a merchant cash advance or bridge funding now and refinance into bank or SBA financing once it closes.

For auto repair shops and dealers: SBA 504 loans are a strong fit if you want to buy your building, and bank equipment loans usually beat an advance on cost for lifts and alignment machines.

Credit card processing

We can set up or review counter terminals, text-to-pay and card-on-file for repeat and fleet customers, with transparent pricing such as interchange-plus.

Processing is provided through our processing partners. Send a recent processing statement and we will show you your effective rate and fees, with no obligation to switch.

Before you sign

Speed costs money. A merchant cash advance is a purchase of future receivables, not a loan, and it usually costs more than bank financing. Before you accept any offer, we walk you through:

  • The amount you receive and the total payback

  • The factor rate, holdback percentage or daily and weekly payment

  • How reconciliation works if your sales drop

  • Fees deducted at funding

  • How a new advance fits with any advance you already have. Stacking too many positions is the fastest way into a cash flow crisis, and we will tell you if it is a bad idea

Approval, amounts, rates and terms are set by the funder. Submitting a request does not guarantee approval.

What funders look at

  • Monthly bank and card deposits

  • Time in business and owner credit

  • Share of revenue from fleets and insurers

  • Existing advances, loans and floor plan lines

Documents to have ready

  • Last 3 to 6 months of business bank statements

  • Card processing statements

  • Owner ID and a voided business check

Ready to see what you qualify for? Start your application or call (516) 474-3776. One application, multiple funders, no obligation to accept.