Auto Repair Shop Financing and Equipment Loans in Long Beach, California

Pick your situation

If you need new diagnostic equipment or shop tools, start with equipment financing or an SBA equipment term loan.
If you need cash to cover payroll, inventory, or immediate repairs, look at working capital loans or a business line of credit.
If you're expanding the shop, adding a bay, or buying another location, SBA 7(a) loans or term loans are your primary path.
If you have strong monthly revenue but inconsistent deposits, a merchant cash advance or revenue-based line moves fastest.

Scroll the curated lenders and loan types below to match your need, then apply.

Key differences: funding types for auto repair shops

SBA 7(a) loans are the workhorse for shop owners. You can borrow up to $5,000,000, rates run 8.5–11% APR (Prime + 2.25–2.75%), and terms stretch to 84 months for equipment. You'll need 2 years in business, a FICO of at least 620, and a debt-service coverage ratio of 1.25x or better. Approval takes 30–45 days. The SBA guarantees 75–90% of the loan, which means lenders take the risk down—your approval odds are higher than conventional bank loans, but documentation is strict. Origination fees run 1–3%.

Equipment financing is purpose-built for tools, lifts, diagnostic computers, and service bays. Rates are often 1–2 points lower than general term loans because the equipment is collateral. You can finance 80–90% of the purchase price, keep terms flexible (typically 3–7 years), and often close in 2–3 weeks. Credit requirements are lower—many lenders work with 580+ FICO if your shop's cash flow is clean. This works well if you're upgrading diagnostic equipment or adding a lift without reshaping your entire capital structure.

Working capital loans and lines of credit address payroll, inventory, and seasonal swings. Lines of credit (often called CAPLines under the SBA) let you draw what you need, pay interest only on what you use, and repay as cash comes in. Rates typically run 9–13% APR. These suit shops with steady revenue but timing gaps—you might have a big equipment bill in January but don't collect from customers until February or March.

Merchant cash advances are the speed play. You get funded in days against a percentage of your future credit card and debit deposits. The cost is steep—effective rates of 35–50% APR equivalent—and you lose a small percentage of every card sale until the advance is repaid. This fits shops with 60%+ of revenue on card, high monthly sales, and immediate capital needs (e.g., an emergency engine hoist replacement).

Long Beach shops often blend these: an SBA loan for a new service bay or building improvement, equipment financing for the specialized tools, and a line of credit for working capital. The blend spreads risk, matches each debt to its purpose, and often qualifies you for a lower blended rate than rolling everything into one term loan.

New-business owners or shops with credit below 620 may need to co-sign loans, post larger down payments (15–25% for equipment), or start with a line of credit before graduating to an SBA 7(a). If your business is under 2 years old, equipment financing and merchant cash advances are clearer paths than SBA lending—San Jose shops face the same timing constraints and often use the same workarounds.

One pitfall: don't confuse a hard credit inquiry (3–5 point ding) with the loan itself. A single inquiry matters little; multiple inquiries in a short window can tank your score. Apply to 2–3 lenders in a week if you're shopping, not across a month.