Auto Repair Shop Business Loans

Auto Repair Shop Business Loans

Cutting-edge technology is having a significant effect on the automotive industry, something that obviously affects the shops tasked with performing auto repairs. According to Keubix, a next-generation transportation management system provider, there are five ways technology is shaping the automotive industry:

  • Internet of Things (IoT). The concept of everything being connected to everything has three uses in the automotive industry:
    • Usage-Based Insurance — which monitors factors such as miles driven, driver behavior and vehicle type to allow a more accurate assessment of risk
    • Electronic Logging Devices — onboard computers that monitor truckers’ driving time to ensure they comply with the law regarding hours of service
    • In-Vehicle Health Monitoring — technologies to monitor drivers’ heart rates, fatigue and distracted driving being developed to help prevent accidents and improve insurance premiums
  • Vehicle-to-Everything (V2X). To improve safety and driving efficiency, technology to connect vehicles with each other, the cloud, and any other obstacle on the road is under development.
  • Autonomous Vehicles. Self-driving cars — powered by Artificial Intelligence (AI) — are expected to be seen on the roads as early as next year.
  • Electric vehicles are becoming more and more common, and are likely to grow in popularity with customers who are increasingly environmentally conscious.
  • Leveraging big data collected from tracking devices and analyzed by intelligent software allows companies to view and automatically consolidate their routes in ways they never previously could.

The Effect on Auto Repair Shops

According to an article from The Zebra, an insurance comparison site, the future for auto mechanics is clean. Mechanics are already doing a lot of software programming, and their job requirements and day-to-day activities have changed quite a bit. Vocational training used to be a hallmark of auto mechanics, but as cars and the systems that run them become more complex, mechanics must attend frequent software training to remain up-to-date.

Mechanics sliding underneath cars or popping open their hoods to determine what’s going on is quickly becoming a thing of the past. Technology helps them figure out what’s wrong without even looking inside; iPads and laptops are taking the place of wrenches and screwdrivers.

Auto repair shops that wish to remain competitive will need to refocus their efforts to attract automotive technicians who are able to work on the advanced technology in today’s vehicles or train their existing staffs. Smart vehicle technology may mean fewer trips to the shop for tune-ups and other traditional services, but when cars do come in, mechanics and technicians will need the skills to work with their increasingly complex computer systems.

While there will remain a need for mechanics who can work on “old” cars for some time, auto repair shops that choose to cling to the status quo may find themselves in trouble, passed by those that are embracing change and investing in technology and people to stay relevant. But what should auto shops do if they don’t have cash on hand to be able to go boldly into a new future? That’s where alternative financing comes in.

 Alternative Financing Options

Traditional funding sources like banks often have too many hoops to jump through and a lengthy application process that more often than not results in a “no.” At Clear Skies Capital (CSC), we’re focused on saying “yes,” helping auto repair shops overcome the challenges presented by traditional financing.

Our streamlined funding process includes very little paperwork, and you can be approved within 24 hours even if you have less than perfect credit. You’ll enjoy 24-hour access to funding, flexible terms up to 48 months, and a fixed payment and interest rate — and don’t forget the interest on your loan is tax deductible. It might sound too good to be true, but it’s not; we’ve been in this business for many years, helping many manufacturers just like you.

Loan Types

Just as every auto repair shop isn’t the same, your financing needs are unique so our team of experienced professionals will work with you to help you determine your best course of action. Three options may be of particular help:

  • Working capital loans — Secure cash on hand to pay for anything that helps you evolve with the industry.
  • Equipment financing — Update your shop as needed with the latest technology to remain competitive.
  • Merchant cash advance — Not really a loan, this is an advance payment made against the projected income of your business in the future, paid back from your credit card income.

 The Takeaway

If you own an auto repair shop, you know it’s important to stay on the cutting edge of the industry by having the ability to evolve to remain competitive. Not having access to capital shouldn’t be the reason you remain stagnant. CSC has worked with many auto repair shops, so we’d love to share our expertise while investigating financing alternatives with you. Get started today! Discover how much you qualify for today.