Business finance for garage owners: What are my options?

Car maintenance and repair is big business and as a nation of motorists here in the UK, garages can really reap the benefits of this billion-pound industry with the right business finance. We all need garages to keep our engines running and therefore garages need to stay ahead of the game with smarter technology, advanced skills training for their team, and essential stock, to get more motorists through the door.   

Speed, reliability, and a job well done are all the points motorists are looking for in a garage and if your garage needs a little extra help in order to offer this then it may be that garage business finance is the right path for you.  

Potential business needs that could mean you benefit from garage business finance

If you are wanting to grow your current business to enable you to hold more of the market share, increase competition and enable you to offer a wider range of services to your customers, or if you want to invest in quality training for your staff or put a reasonable sum of money into marketing your business, then these are all factors that could benefit from business finance.   

  • Renovating and developing your workspace to make way for more equipment or space to fit more cars, enabling you to take on more staff, and increasing customer footfall is a business need that could benefit from business finance and one that will greatly enhance your business. 
  • Investing in smarter technology both for your shop floor and customers. Software that will make booking with you easier and communication more fluid is something that could enhance your customer footfall. Also, smarter equipment to make the work quicker and easier for your staff means that you can see more customers in a day. 
  • Quality staff training is something that is hugely beneficial to a growing garage business. Ensuring that your staff are trained to the best of their ability will ensure quality and quick job turnarounds and hopefully a lot of repeat business. 
  •  Business finance can also be useful to put into big marketing campaigns, both on and offline. Making an impact with quality advertising can enhance your customer base and make a big financial impact. 

The most appropriate garage business finance options for my business. 

There are a number of business finance options available for garages to make the changes they want and see the growth they desire. Garage business finance can help to spread the cost of investment in new equipment. The below 3 types of business finance are best suited to garage businesses- 

Asset Finance 

Asset finance is the ideal option if you need to purchase equipment or vehicles or if you need a refurb. It allows you to purchase much-needed equipment in order for your business to grow, without having to pay a hefty sum upfront. Instead of buying the asset straight out, you will pay a regular amount to use the asset over an agreed period, avoiding the full cost and burden of buying outright. 

Waiting until you have enough cash upfront can put a stopper in business growth which is why asset finance is the perfect solution for you to purchase new equipment and invest in technology and reap the rewards straight away. There are a range of asset finance facilities that allow your business to retain cash and pay for the asset over time in smaller, more affordable payments. 

Business Loans 

Business loans can be a great tool to finance anything that is needed to grow your business. It is a sum of money issued to a business owner exclusively for use in their business and is repaid – with interest – over a set period. The sum of money you are able to borrow can range from £5,000 to several million pounds and there are a number of options to choose from including secured and unsecured loans, working capital finance, and short-term business loans. 

Merchant Cash Advance 

 A merchant cash advance is a great way to get short-term capital for your business, without the risk involved in other methods of business finance. The way a merchant cash advance works is by acquiring a cash advance from a lender, this sum is then repaid as a percentage of its customer’s card payments using a card terminal (PDQ machine). The beauty of this is that the advance is repaid in line with your business sales, only paying back the advance when you receive customer card payments, helping to manage cash flow. 

How PMD can help your garage find the perfect business funding to suit your business. 

We believe that nothing should stand in the way of business growth and we understand the challenges garages are facing to stay ahead of the game. At PMD, we aim to work with you to source finance options that will ensure that your business can grow without limits. 

We’ll identify where your business can benefit from different types of business finance. Whether that be acquiring new assets , using business loans to fund an extension or a refurb, or a merchant cash advance to invest in marketing.  

At PMD, we have built robust relationships with over 150 independent, flexible and competitive lenders, enabling us to match our customer’s specific circumstances and requirements directly with the appropriate lender, making the acquisition of business finance much more manageable. 

If you’re looking to grow your garage business and are considering your business finance options, get in touch today and see how PMD can help.  

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