Have you been considering a merchant cash advance to improve the auto body repair services you offer to your community? If you’ve been in business for a little while, you understand the opportunities that are present in this industry. The auto body repair business has been thriving in the last few years, at a growth rate of around 1.3% since the recession. This is due to American’s reliance on vehicles to get them to work, school, and for business needs. It’s been more economical to maintain vehicles, rather than buy new ones. According to IBIS World data, there are some 119,398 auto repair businesses in the USA alone, generating $39 billion in revenues.
THE AUTO REPAIR BUSINESS IS GROWING AT A STEADY RATE
Over the next few years, the auto body repair industry is projected to grow at a strong rate, as the economy continues to strengthen and more people have disposable income to spend on car repairs and upgrading their vehicles. Much of this growth comes from the small business sector, with mom and pop auto repair shops providing excellent service to their communities. But they’ve had things hard and many have struggled with less than perfect credit ratings and challenges with getting small business loans. Smart auto repair businesses have turned to alternative funding sources, such as merchant cash advances, to upgrade equipment and expand operations.
BENEFITS OF MERCHANT CASH ADVANCE PROGRAMS FOR AUTO REPAIR SHOPS
Not sure if a merchant cash advance is the right choice for your auto repair shop? Consider some of the benefits of using this kind of working capital solution.
EASY TO QUALIFY
Do you take credit card payments from your customers? If so, then getting a merchant cash advance is a snap. Even if you don’t currently accept credit card payments, it’s possible to get a merchant account and then become eligible for merchant advances on all future payments you accept. And fees are low. The Small Business Administration advises that most merchant account companies charge around 2 to 5% for each transaction, which includes processing, gateway costs, and the individual convenience fee assessed by credit card companies.
RELIABLE SOURCE OF WORKING CAPITAL
It’s common for auto body shops to have much of their income tied up in vehicle parts and waiting on insurance claims to pay. The benefit of a merchant cash advance is that you get paid first and then when credit card payments come in, the advance is paid back over time. This is a better way of managing cash flow, and avoiding the ‘feast or famine’ problem that many small business owners face. You can even bankroll the extra money and use it as you need it, while knowing that the payments are easy to manage in small increments.
NO HIDDEN FEES
Merchant cash advances are perfect for shop owners who do not want to be socked with hidden fees and undisclosed costs. Because a set percentage of each payment is assessed, you will know upfront what you are paying for this convenience. This helps to balance the books as a regular practice to see all income and all expenses, as statements can be run on a daily basis and fees can be calculated. There’s no surprises using this method.
LENDER PAYMENTS AUTOMATED
If you are running a busy auto repair shop, you often have to choose between doing quality work for your customers and back-office functions. This is very common with small businesses with limited employees. It can be difficult to remember when small business loan payments are due, not to mention other bills. A major benefit of merchant cash advances is that the payments are automatically assessed with every credit card payment you accept, so you never have to worry about getting behind.
AVOID A CREDIT CHECK
A merchant cash advance doesn’t require a hard pull on your personal or business credit history, and there are no intrusive questions asked. This can be great if you are trying to rebuild a credit score and don’t want to have too many inquiries showing up. If you decide to pursue a small business loan later on, you may be asked for a credit check, but the approval process will be much easier because of an established history with a merchant account company so it’s not always necessary.
NO RISK OF COLLATERAL
Bank loans and borrowing money in general can be risky propositions for any small auto repair business, because they can require putting up property and equipment as collateral. The good news is with a merchant account advance, there is no need for collateral so there is no risk to the business. That can give you peace of mind knowing your business is secure and no one will come knocking to take your auto repair equipment.
FLEXIBLE REPAYMENT TERMS
Because merchant cash advances are actually based on your average credit card sales, you are given very flexible repayment terms. In fact, no payments are assessed until you get your next credit card payment. United Capital Source provides access to merchant credit card loans which enable your business to focus on the important things – like taking care of your customers. If you need more time to pay, you can often work with a lender to come up with a solution that makes better sense, given your business operations.
Today, there are more choices than ever before in small business loans and other working capital for your auto repair shop. You don’t have to worry about the rejection that often comes with dealing with banks. Merchant account loans are available through a network of reputable financial companies that have been serving businesses like yours for years.
Before you take out another form of small business loan for your auto repair shop, be sure to consider all the advantages of getting money just for accepting credit card payments, with a merchant credit card advance program from United Capital Source.