Funding FAQ

Many auto shop owners do. Because a merchant cash advance is repaid from your ongoing revenue — not against collateral or your personal credit — funders place heavy weight on your bank deposits and card sales volume. Owners with FICO scores in the 520–580 range may still qualify when monthly shop revenue is consistent. Checking your options here is a soft inquiry and will not affect your score.

After submitting the short pre-qualify form, a funding advisor typically reaches out within one business day. Once they have your recent bank statements, decisions commonly come within 24–48 hours, and approved funds can arrive in your account shortly after — often the same day or next business day.

A merchant cash advance uses a factor rate rather than an interest rate. A factor rate of 1.30, for example, means a $50,000 advance would require $65,000 in total repayment — the $15,000 difference is the cost of capital. That total is repaid as a percentage of your daily or weekly card sales, so the calendar time to pay off depends on how busy the shop is. Your advisor will show you the full repayment figure before you sign anything.

Not automatically. Funders in this space are primarily underwriting your shop's revenue stream, not your personal credit file. A history of steady deposits — from retail repair tickets, fleet billing, or commercial accounts — often carries more weight than a FICO score. That said, very recent bankruptcies or open judgments may affect options, and your advisor can walk you through what applies to your situation.

Yes, and it's worth mentioning when you apply. Fleet and commercial receivables on NET-30/60 terms mean money you've already earned is sitting in accounts receivable. Some funders consider that AR as part of the overall picture; others focus strictly on card volume and bank deposits. Either way, having established fleet or commercial accounts is a positive signal for your shop's revenue stability.

To start the process, just the short online form — no documents required. To finalize, most funders ask for your three most recent business bank statements and a form of ID. Shops that do a mix of cash, card, and fleet invoicing should pull statements that reflect total deposits. Your advisor will tell you exactly what applies to your application.

A merchant cash advance is not a loan — it's the purchase of a portion of your future revenue, repaid as a percentage of your card settlements or a fixed periodic debit rather than a fixed monthly payment. A bank term loan or SBA loan typically costs less over time but takes weeks to underwrite and often wants collateral or strong personal credit. An MCA trades a higher cost of capital for speed: approval leans on your shop's deposit history and card volume, and funds can arrive in as little as 24–48 hours.

Some funders will underwrite against combined revenue across locations if they share common ownership and the entity structure supports it, which can support a larger advance than a single bay count would suggest. Others prefer to evaluate each location separately. Bring bank statements for every location you want considered, and your advisor can tell you which approach a given funder takes.

Some funders offer a renewal once a meaningful share of an existing advance — often around 50–75% — has been repaid, sized against your current revenue. Taking on a second, separate advance while one is still largely outstanding (stacking) is generally discouraged: the combined repayment amounts can meaningfully cut into the cash you need for parts and payroll. Mention any existing advance when you apply so an advisor can walk through what's realistic.

It depends on the funder. Some agreements include an early-payoff discount that reduces the total amount owed if you clear the balance ahead of schedule — useful after a strong run of fleet work or a busy season. Others charge the full factor-rate amount regardless of timing. Ask your advisor whether early-payoff terms apply before you sign.

Most funders look for a minimum operating history, often around six months, though it varies. A newer shop with strong, consistent deposits in its first few months — especially from an established book of fleet or DRP work — can still present a qualifying case. An advisor can give you a realistic read once they see your statements rather than ruling it out on time in business alone.

Most funders want statements for an account held in the shop's legal entity name, separate from personal accounts. An account that mixes personal and business activity, or doesn't match the entity on the application, typically slows underwriting because the funder can't cleanly verify your actual deposits and card volume.

It's generally a positive signal. A shop with direct-repair-program (DRP) relationships or steady insurance-paid work usually has a more predictable deposit pattern than one relying entirely on walk-in retail, even though those payments can lag the actual repair by a few weeks. Mention your DRP or insurance mix when you apply — some funders factor that reimbursement timing into how they read your cash flow.

Yes. Revenue, deposits, and time in business all change month to month, and a shop that doesn't qualify today — coming out of a slow winter stretch, for example — may present very differently after a few strong months. There's no penalty for reapplying, and pre-qualifying again won't affect your credit score.

Most shops use working capital for parts inventory, payroll during a slow stretch, equipment like a lift or a scan tool, or bridging the gap while an insurance or fleet invoice is outstanding. Funders generally don't restrict use of funds to a specific category the way an equipment loan would — the money is yours to allocate once it lands, though your advisor may ask what you plan to use it for as part of underwriting.