As an auto repair shop owner, your job description is endless. Whether you are growing your business, operating and maintaining automotive equipment, or researching and testing new procedures, your plate is always full. National Business Capital is here to help you find the right business loan to suit all your business needs. Most business owners do not have immediate access to additional capital to take their business to the next level. Nevertheless, this should not squash your hopes and dreams of expanding your business. Let’s examine the following scenario so that you can see how an auto repair shop owner can use our equipment financing options to increase their monthly profit.
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In this scenario the auto repair shop owner renovates his shop by adding 3 additional bays to his garage. He takes out a loan amount of $100,000 over an 18 month term. The use of funds in this scenario breaks down like this: $67,500 towards construction (1,350 sq. ft. @ $50 per foot), $15,000 combined for 3 new lifts, $8,000 for a frame straightener, $2,500 for wheel balance, and $7,000 for specialty tools. Now lets take a look at the sales increase breakdown. Every 1 bay that was added equates to $1,780 in additional daily sales. This number is based off of the national average repair cost of $365 multiplied by 5 vehicles per day. Take that $1,780 in daily sales and multiply it by 3 bays and you get $5,340 in additional daily sales. Now, from that $5,340 in daily sales, we minus the national average for expenses which is 90.8% or $4,848.72, which leaves us with $491.28 in daily additional profit. So now we take the $491.28 in additional daily profits and multiply it by 5 work days per week which equals $2456.40 in additional sales. We take the $2,456.40 and multiply that by 78 weeks (18 months) which equals $191,599.20 in additional profits for adding 3 new bays! Our financially savvy auto repair shop clients make sure to pay the loan and interest back first before using the additional profits for anything else as they know that after the loan is paid back, all of the above mentioned additional revenue is pure profit!
So now lets dive deeper into our Equipment Financing Options. National Business Capital finances almost every type of equipment within the auto industry. We will work with you to finance new or used equipment or purchase inventory in anticipation of future orders. We offer a comprehensive package of equipment loans, ranging from 12 – 60 month terms, as well as a 10 year financing option for more extensive manufacturing equipment.
Equipment Financing Options Include:
1. Flexible Terms 2. 1-5 Year Repayment Options 3. Great Tax Benefits 4. Purchase Equipment from Vendor of Your Choice The majority of our clients were denied equipment loans from traditional banks prior to contacting us. National Business Capital has a 90% approval rate and ability to grant the means for equipment leasing to our clients. Finding the ideal financing company to back your shop is important. Whether you’re looking to expand, renovate, or purchase new equipment for your location, National Business Capital offers small, medium, and large-sized business financing nationwide no matter the credit history. Our specialized team of business consultants will work with you to find the right financing option that fits your specific needs. Check out our 1 minute video below for more info on how the process works.
For reading our blog post we would like to offer you our FREE Report titled “Top 5 Financing Options For Auto Repair Shop Owners”. You can download the report by clicking here. If you’re ready to get started with your business financing needs, click here to fill out our 2 minute online application or feel free to reach out to one of our Business Consultants at 1-888-888-9124.