Merchant cash advance for garages and automotive businesses
By Helm, Business Funding Specialists
- Garages and automotive businesses are well suited to MCAs due to consistent card payment volumes
- Common uses include diagnostic equipment, ramps, stock, and premises upgrades
- Repayments flex with daily revenue, so quieter days cost less
- No need to put property or personal assets at risk
Running a garage or automotive business requires constant investment. Equipment needs upgrading, technology evolves, and customer expectations grow. But traditional bank loans can be slow, inflexible, and difficult to access, especially for independent operators.
A merchant cash advance provides a faster, more flexible alternative. Because garages process a high volume of card transactions every day, the funding model is a natural fit.
Why garages are a strong fit for MCAs
Several characteristics of the automotive trade align well with how a merchant cash advance works.
- High average transaction values mean strong card revenue
- Consistent demand for MOTs, servicing, and repairs provides steady cash flow
- Card payments are the dominant method, with most customers paying by card or contactless
- Growth investments like new equipment directly increase capacity and revenue
Common uses for automotive funding
Garages and automotive businesses use merchant cash advances for a wide range of investments.
- Diagnostic equipment and software upgrades
- New vehicle ramps, lifts, and alignment systems
- Tyre fitting equipment and stock
- Workshop expansion or refurbishment
- ADAS calibration equipment for modern vehicles
- EV charging points and hybrid service tools
- Waiting area improvements to enhance customer experience
- Marketing to attract new customers
- Additional staff or apprentice training
How repayments work for garages
Garage revenue can vary day to day. A Monday with three MOTs and an oil change looks very different from a Friday with a full engine rebuild and four tyre changes. Your repayments adjust accordingly.
| Day | Card revenue | Repayment (10%) | You keep |
|---|---|---|---|
| Monday | £800 | £80 | £720 |
| Tuesday | £1,200 | £120 | £1,080 |
| Thursday | £2,500 | £250 | £2,250 |
| Friday | £3,000 | £300 | £2,700 |
| Saturday | £1,500 | £150 | £1,350 |
Preparing for the EV transition
One of the biggest challenges facing garages today is the shift towards electric and hybrid vehicles. Servicing these vehicles requires new equipment, training, and certifications that represent a significant investment.
A merchant cash advance can fund this transition without the delays of a bank loan application. Whether you need ADAS calibration tools, high-voltage safety equipment, or staff training courses, the funding can be in place within days.
Eligibility for automotive businesses
Most garages and automotive businesses will meet the eligibility criteria easily.
- Processing at least £10,000 per month in card transactions
- Trading for a minimum of three to six months
- Registered as a UK business
- Using a compatible card terminal or payment provider
Frequently asked questions
Can mobile mechanics get a merchant cash advance?
Yes, as long as you process card payments through a mobile terminal or payment app and meet the minimum transaction threshold.
Can I use the funds to buy a new vehicle ramp?
Absolutely. There are no restrictions on how you spend the funds. Equipment purchases are one of the most common uses for garages.
What if my card revenue drops during a quiet month?
Your repayments drop automatically. Because they are a percentage of your card transactions, lower revenue means lower repayments.
How quickly can I get funded?
Most applications are approved and funded within 24 to 48 hours, so you can access capital quickly when you need it.