Auto repair shops must evolve in order to survive in an increasingly competitive market. This can be done in a number of ways, so it’s up to the business owner to decide which strategy makes the most sense. Thankfully, the more forward-thinking members of the business financing industry have noticed that strategy has become more important for various industries. Rather than spending their days looking for different financing tools, auto repair shops must now devote their time to figuring out how to expand their customer base and/or instill loyalty in current customers. The perfect small business loan for this situation is credit card factoring, which prioritizes peace of mind and smooth operations.
Owners of auto repair shops are known to be extremely busy. They don’t have time to prepare a tedious application and might not remember to make fixed payments every month. Credit card factoring is arguably the best solution for any business owner who is concerned about not being able to serve customers during a major, long-term initiative.
1. Marketing 24/7
If you live near a busy road, there’s probably several auto shops within a few miles of each other. It’s only natural to wonder how all these shops managed to find their legs and attract customers. In most cases, the short answer is marketing. They begin with free or low-cost options, like social media, flyers, and word-of-mouth. Groupon can be a huge help as well, especially when it comes to referrals. But as a business grows, simply getting your name out there is no longer the primary focus. In addition to Google ads and Facebook ads, auto shops must form a legitimate connection with their target demographic. Customers who drive certain vehicles like to be serviced by other people who share their interests. Think of the club-like followings that have developed around Jeeps or Subarus.
Credit card factoring can provide the means to hire a full-time social engagement specialist who will manage social media accounts day in and day out. Using multiple platforms, he or she will ensure that different services are marketed to the right people. And since you are financing the new campaigns with credit card factoring, you won’t have to worry about making significant payments when business is slow or stagnant. It may take time for new customers to start coming in but up until that time, your cash flow will remain almost entirely untouched. Actually, it will likely improve since you’ll have more freedom to complete projects. Marketing duties are now someone else’s responsibility, as opposed to being your second job when you get home.
2. Offering New Services
As intimidating as this sounds, the need to offer new services is basically inevitable for most auto shops. They fix cars, which don’t have the same mechanics and capabilities they did in previous years. You also don’t have to be an auto expert to observe changes in trends. Tinting, for example, has become much more popular with younger drivers. Odds are, your auto shop has at least a considerable amount of customers who are in the market for a certain service you are yet to introduce.
Much like marketing, several months could go by before your new service begins to bring in more money than its initial cost. But with credit card factoring, those initial costs would be covered by your business lender and wouldn’t have to be repaid until sales volume increases. In fact, tight cash flow isn’t a strict requirement for credit card factoring approval. You could essentially be approved during a slower period, giving you time to gradually spread awareness leading into a busy period, when everyone wants their cars to be in tip top shape.
3. Equipment Financing
A common function for auto repair business loans is purchasing new equipment. The auto industry is consistently becoming more advanced, with new equipment being released to accommodate the new needs of drivers. Some new tools, however, are created just to shorten the time it takes to complete typical jobs. For many auto shops, speeding up operations is the most effective way to increase profits. It’s very difficult, however, to increase profits if you are unable to put money away every month. The repayment structure of credit card factoring allows you to continue putting money away (or put more money away) following substantial purchases. Sales will then increase as your new equipment lowers productivity costs, giving you the profitability to qualify for a much larger business loan in the near future.
The Customer Service You Deserve
When auto shop owners research business lenders, they aren’t necessarily looking for low interest rates or high borrowing limits. They are instead looking for someone who will take the time to talk to them and work out a sensible plan. Companies like United Capital Source are willing to talk when it is convenient for the borrower, and they don’t judge you based on what they see on paper. Customer service is vital for any small business. What better way to prove you understand this than by exhibiting it yourself? No matter how busy you are, UCS will give you the same customer service your loyal customers expect from you each day.