Auto Repair Merchant Cash Advance & Business Funding
Auto repair shop financing read through parts and claim checks.
For collision repair shops and mechanical bays, the merchant cash advance file starts with insurer checks and parts bills. Auto repair and collision shops are funded on deposits read over several months, because insurer checks arrive in larger amounts days or weeks after the repair is done. A full bay and a thin account at the same time is normal, and funders know it.
Auto repair shops use a merchant cash advance to cover parts, lifts and payroll while insurer payments catch up. Afterfirst MCA sends one application to several funders so you can compare offers.
Who should read this: mechanical repair shops, body and collision shops, tire and specialty service shops, and brokers with those files.
How do insurance payments change a body shop file?
Insurance payments change your file because they arrive in larger checks, days or weeks after a repair is finished.
A collision shop may have a full bay and a thin account at the same time. Funders look at the pattern of insurer deposits over several months rather than one week.
Parts-heavy trades such as HVAC and plumbing show a similar supplier rhythm, while a Retail counter at the front of a shop reads more like a store.
We're not a funder.
We don't fund deals ourselves. We shop yours with funders who do, so you see more than one offer.
Only funders that fit.
Your file goes to funders that work with your industry and your deal size. Nobody else sees it.
You make the call.
Every offer comes to you in writing. Nothing happens until you pick one.
- What it costs to apply
- Nothing. Applying costs you nothing, and Afterfirst MCA charges you no fee.
- Credit
- Ask us how each funder checks credit before you agree to anything.
- Speed
- We call you back and talk with you before your file goes to any funder.
- Offers
- Every offer shows the total payback, the payment amount, how often it comes out, and the term.
Auto repair shop financing with retail and insurance customers
Funders read a mixed shop by separating card and cash payments from walk-in customers from the larger, slower insurance checks.
Each stream has its own rhythm, and the mix shapes the offer.
Card payments at vehicle pickup
Customers paying at pickup produce steady card deposits through the week. Funders treat these like other daily card revenue.
More collision work, lumpier deposits
A shop taking on more collision work sees deposits grow lumpier as insurer checks replace daily card payments. The average may stay flat while the pattern changes.
A short note on the new work mix
A note on the change in work mix helps a funder read the new pattern correctly. Open claim totals support the note.
Open claims listed by insurer and week
A summary might list the insurer, the claim amount and the expected payment week for each open job. It shows money on the way.
Insurer checks deposited in batches
Insurer checks often arrive several at a time and deposit as one large item. Listing the claims inside each batch helps the funder read it as routine.
The parts side of the statement
The parts side tells a funder how much of each deposit is really the shop's to keep. Regular ACH debits to parts distributors, paint suppliers and tire wholesalers are normal. Funders compare them to deposits, and a sudden rise in parts spend without matching deposits draws questions.
Do fleet accounts help an auto repair file?
Fleet accounts can help because they bring recurring work from a known customer, often on invoice terms. They also create receivables that arrive on a schedule.
Mention fleet customers and their payment terms on your file.
A shop already paying one advance is usually a Second position file, and the Bank statement guide shows how funders separate insurance checks from card sales.
Questions from shop owners
Can a body shop waiting on insurance checks get a merchant cash advance?
A body shop can apply while insurance checks are still outstanding, and the claims explain the gap in deposits. Funders read several months of history. Send a list of open claims if it helps tell the story.
Does a tow truck or lift purchase make sense on an advance?
Larger equipment usually fits equipment financing better than an advance. A smaller purchase that brings in work right away can fit an advance. Compare both schedules before choosing.
Do funders look at how many bays a shop runs?
Funders mostly read the bank statements, not the shop layout. Bay count can help explain capacity when deposits are growing. Put that detail in your notes if it matters.
Sources
- The Federal Trade Commission's Financing tips for small businesses ask whether a deal requires a personal guarantee and what a missed payment triggers, two questions to settle before any auto repair shop financing is signed.
Afterfirst is not a funder; all offers are subject to funder underwriting.
Cost, credit, speed and stacking
Cost
Credit
Speed
Stacking
Which months are slowest in this industry?
This table shows how many people private automotive repair and maintenance (NAICS 8111) businesses employed each month, as an index where the year's average is 100. It comes from the Bureau of Labor Statistics Quarterly Census of Employment and Wages, the most recent full year available. Staffing is a stand-in for how busy a business is. Deposits can move more or less than headcount, so read it as the shape of the year, not your numbers.
| Month | Staffing index (average = 100) | |
|---|---|---|
| January | 99 | lowest |
| February | 100 | |
| March | 100 | |
| April | 100 | |
| May | 101 | highest |
| June | 101 | |
| July | 100 | |
| August | 100 | |
| September | 100 | |
| October | 100 | |
| November | 100 | |
| December | 99 |
The low point is January at 99.1 and the high point is May at 100.7, a swing of 1.6 points. Auto repair staffing is steady, with a small spring rise.
| Quarter | Total payroll index (average = 100) |
|---|---|
| Quarter 1 | 96 |
| Quarter 2 | 99 |
| Quarter 3 | 100 |
| Quarter 4 | 105 |
Payroll by quarter can rise at year end for reasons like bonuses and overtime, not only more work.
Example: say a business like this deposits $90,000 in an average month and pays a fixed $9,000 a month, 10% of that. If deposits tracked the payroll index, Quarter 1 at 96 would bring in about $86,400, and the same payment would take 10.4% of it. Plan the payment on that quarter, not on Quarter 4 at 105.
Source: U.S. Bureau of Labor Statistics, Quarterly Census of Employment and Wages.
Which funding options fit auto repair shops?
Each page runs one option against this industry's slow months.
Second position MCA for auto repair shops
What a second advance adds on top of the first, and what both payments take from deposits in a slow month.
MCA consolidation for auto repair shops
One payment in place of two, with the share of deposits before and after in a slow month.
Revenue-based financing for auto repair shops
A remittance that moves with revenue, so a slow month sends less, and the months to reach the repayment cap.
Business line of credit for auto repair shops
A draw sized for a slow month, repaid in thirds, with the interest on the balance worked out.
Send one file.
See what fits.
Call 877-FUND-654 with questions.