Regardless of whether you’re opening up a new auto shop, or you have an existing shop that you want to expand, at some point you’ll probably need more working capital.
Having access to a working capital loan will allow you to purchase tools, inventory, and equipment, or can provide money for repairs or expansion expenses.
Many business owners think that getting a business loan will be a nightmare. A long drawn out process that ends by being turned down. If you’re dealing with a bank, that may be true.
Fortunately, it doesn’t have to be that way if you use an established alternative lending partner like Mulligan Funding for your auto shop financing. A working capital loan that’s used wisely can propel your business to new heights.
So what exactly are the best ways to use a working capital loan for your auto shop? Let’s dive into some scenarios.
Purchase New or Used Equipment
When you can afford to buy new, it’s usually the best choice. But there are many places that you can purchase used equipment without sacrificing quality. Having the proper tools is vital to your business.
Not only will you be providing your customers with the best service possible, but you’ll also be helping out your employees by setting them up for success. Every shop owner knows that having the right tool for the job is critical and makes the job much easier.
Depending on the type of equipment you need, you may not have to buy the newest and fanciest available. There are plenty of places where you can find used equipment and get the best return for your working capital loan.
Ramp Up Your Marketing Strategies
Every business goes through peaks and valleys. One way to keep a steady customer flow is to have a quality marketing strategy in place, and a working capital line of credit or loan can help you to fund that strategy.
The exact marketing strategies that you use can vary depending on your location, the size of the city you operate in and other factors.
Finding the most efficient marketing strategies will make you feel like your loan is worth it. Advertising isn’t cheap, but if you get a good return on your marketing dollar by bringing in more customers, it’s hard to argue against the value of it.
Boost Your Staff
There are positives and negatives to keeping a lean staff.
The positive is that keeping your overhead low is great on the bottom line. But the negative is you keep costs low at the expense of turning away business or lower levels of service to your vehicle owners.
When you have the flexibility of a working capital loan, you will have funds available to make your next great hire. The worst thing you want to do as an auto shop owner is turn away business, so having enough workers in place to handle the demand is vital.
Plus, when you have enough people on the shop floor at any given time, the workflow will be much smoother and mistakes will be less likely. Customers will notice when you have plenty of staff on the floor and will feel more confident in using your services in the future.
We believe these are the three best ways to get the most out of any working capital loan you take out. Having access to a hassle-free working capital loan will make the process much easier.
That’s where Mulligan Funding enters the picture. We take pride in working with our business owners (over 50,000 of them since 2008, in fact) to ensure they have the working capital line of credit they need for their situation.
We’ve provided access to over $100 million in financing to business owners, including auto shop owners like yourself. Our success is built on the success of each of our clients.
Call Mulligan Funding at 855-326-3564 to discuss your financing options today!
The information shared is intended to be used for informational purposes only and you should independently research and verify.
Note: Prior to January 23, 2020, Mulligan Funding operated solely as a direct lender, originating all of its own loans and Merchant Cash Advance contracts. From that date onwards, the majority of funding offered by Mulligan Funding will be by Loans originated by FinWise Bank, a Utah-chartered Bank, pursuant to a Loan Program conducted jointly by Mulligan Funding and FinWise Bank.