Commercial Financing for Automotive Repair & Towing Businesses
Driving Business Growth
Running a successful automotive repair, maintenance, or towing business requires consistent access to capital for equipment upgrades, expansions, and managing day-to-day operations. With the U.S. automotive repair industry alone expected to exceed $75 billion in 2024, businesses in these sectors need flexible financing options to stay competitive and grow.
At Haro, we offer a wide range of financing solutions tailored to automotive businesses. Whether you’re looking to purchase new repair equipment, expand your service offerings, or smooth out seasonal cash flow, Haro’s financing options can fuel your business’s growth.
Debt Financing Options for Automotive Repair, Maintenance, and Towing Services
Asset-Based Loans
Many automotive businesses rely heavily on equipment and real estate. Asset-based loans offer a way to leverage those assets—such as repair tools, diagnostic equipment, or towing vehicles—to secure funding for expansion, working capital, or new purchases.
SBA Loans
The SBA 7(a) and 504 loans are ideal for automotive businesses looking for long-term, affordable financing. SBA 7(a) loans can be used for everything from new equipment purchases to business expansion, while SBA 504 loans provide fixed-rate financing for major projects like buying a new repair facility or renovating a shop.
Lines of Credit
For businesses that experience seasonal fluctuations or unexpected expenses, a line of credit offers a flexible solution. Whether it’s covering payroll during slow periods or purchasing inventory like tires and automotive parts, lines of credit provide quick access to needed capital.
Term Loans
Term loans offer a fixed amount of capital, typically used for significant investments such as opening a new location, purchasing additional service trucks, or upgrading an automotive shop. With predictable payments, term loans are ideal for long-term planning.
Equipment Financing
New automotive technology, repair tools, or towing vehicles can be expensive. Equipment financing allows businesses to purchase the necessary equipment without the upfront costs, making it easier to keep operations running smoothly and efficiently.
Invoice Factoring
Automotive businesses, particularly those in towing services, often deal with delayed payments from customers. Invoice factoring allows you to sell unpaid invoices to a factoring company for immediate cash, improving cash flow and allowing you to cover day-to-day expenses while waiting for payments.
Equity Financing Overview
The automotive repair and maintenance sector has become a key focus for private equity firms and strategic buyers, driven by rising demand for vehicle services and the growing trend of vehicle longevity. With Americans keeping their cars on the road for an average of 12.2 years, the market for repairs, maintenance, and towing has expanded, leading to $15 billion in M&A activity in the last year alone. Investors are particularly interested in scaling operations, offering strategic mergers, and providing growth capital to local and regional service providers.
For towing services, consolidation has been a growing trend as larger towing companies seek to expand service coverage across wider regions. Growth equity and strategic partnerships are helping businesses in this sector scale up, invest in new equipment, and enhance customer service capabilities. Whether your goal is to explore a business exit, strategic merger, or growth capital, Haro connects automotive businesses with equity partners who align with their long-term strategies.
Ready to Grow Your Automotive Business?
Whether you run an automotive repair shop, a vehicle maintenance service, or a towing company, Haro understands the unique financial challenges you face. We provide personalized financing solutions, expert advice, and access to a vast network of capital partners to help your business grow. From managing cash flow to expanding your business, Haro is here to support your success.
Don’t let financial roadblocks slow down your business. Partner with Haro to explore tailored financing solutions that will keep your automotive business moving forward. Apply today and let our experts guide you toward the right financing option. Get started now!