Loans Canada Launches Free Credit Score Portal And Is Recognized As One Of Canada’s Top Growing Companies
Loans Canada is pleased to announce it placed No. 131 on the 2022 Report on Business ranking of Canada’s Top Growing Companies.
As you know, becoming a mechanic and running your own auto shop certainly takes considerable training and financial aid. This is why an affordable and convenient business loan from a reputable lender is such an important asset for Canadian mechanics and garage owners all across the country. Whether you’re looking to upgrade some equipment or move to a better location, the best way to make sure your garage sees a profit is to make sure all your expenses are taken care of and with the right business loan, you’ll be able to do exactly that.
Amount | APR | Term (months) | ||
![]() | 1k-300k | Fee-Based: Starting at 9% | 12- 60 | Learn more |
![]() | 5k-300k | 8% – 29% | 6-18 | Learn more |
![]() | 1k-500k | +5.9% | 3-60 | Learn more |
![]() | Up to 300k | 8%-22% | 6-12 | Learn more |
![]() | 5k-500k | - | 6-18 | Learn more |
![]() | 100K + | 6.05% + | 60 | Learn more |
![]() | 5K-100k | 15%+ | 12-18 | Learn more |
In fact, once you secure your business loan, you can use it as capital to start your automotive repair shop, or use it to finance any expense you incur.
A business loan can provide you with the capital you need to purchase or lease a property to offer your services. It can also be used to repair or remodel your workstations, office, bathrooms, or customer waiting area.
Mechanic and auto repair shops involve dangerous labour work where employees may injure themselves. Investing in quality work gear and safety equipment like gloves, jumpsuits, non-slip/ steel-toe boots, safety goggles, welding masks, can fire extinguishers can help mitigate workplace injuries.
In order to offer your services, you’ll need proper automotive repair equipment such as standing tool chests, diagnostic equipment, brake lathe, pipe bender, pedestal drill, body repair kit, fluid injection test kit, patch kits, emergency spill kits, creepers, and more.
In addition to all the equipment, you’ll also need proper tools like air and spring compressors, micrometre, tachometer, spanners, manual/pneumatic wrenches, grinders, flame cutters, hydraulic jacks, and more. You’ll also need to finance basic inventory supplies such as engine parts, nuts/bolts, engine oil, transmission fluid, funnels, rags, freon, fuel injection cleaner, car batteries, hoses, brake pads, and other miscellaneous items.
Depending on the property, you may need to make some leasehold improvements. For example, you may need to add on multiple garage ports, wide enough to house any size vehicle. You may also want to install lighting fixtures that best work for your mechanics or lay a steel reinforced floor that will support your hoists and service pits.
To start a business in Canada you’ll need to have all the required business licenses and permits for you and your employees to operate and utilize certain machinery. Moreover, you’ll need to purchase liability, property, and workers compensation insurance to protect yourself in the event of a workplace injury or property damage.
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Depending on the lender you choose, you’ll be subject to varying requirements to qualify. However, there are a few common factors lenders use to determine an applicant’s creditworthiness.
There are many financing options available to small businesses in Canada. Depending on what you’re looking to finance one option may suit your situation better than the other.
Invoice financing works by selling your pending invoices to a lender for a discount. This form of financing is fast, expensive, and secured as it uses your invoices as security. You can use this financing option to fund any unexpected expenses that come with running a mechanics and automotive repair business.
If you accept card payments for your services, then you’ll be able to get a merchant cash advance. It is a financing option that allows you to obtain a lump sum of cash in return for a percentage of your future card sales. It is a fast way to obtain extra funds to cover emergencies and other mechanic shop costs.
As previously mentioned, running a mechanics and auto repair shop require equipment such as diagnostic equipment, safety equipment, and other tools and supplies to operate. However, paying for the equipment outright is costly. That’s where an equipment loan comes in. An equipment loan works just like a business loan expect the equipment you’re purchasing is used to secure the loan. Due to the security it provides, equipment loans are not just easier to qualify for, but you’ll qualify for lower rates. It’s important to note, that most lenders will finance up to 80% of the equipment, meaning you’ll have to pay the other 20% upfront.
A business line of credit works like a credit card where you can withdraw money up to a certain credit limit. Interest is only paid on the amount used and you’re able to reuse the funds as you pay it back. This form of credit can equip you with the capital you need to pay your suppliers, increase cash flow and a number of other expenses.
The Government of Canada offers a number of programs and resources to help new businesses. The CSBFP is a government-backed loan that you can apply for through any major bank, credit union or financial institution. You can receive up to $1 million and up to $350,000 for equipment and leasehold improvements.
Check out more government financing options for businesses in Canada.
If you’re in the market for a business loan to help make your garage a place that your customers will be happy to bring their vehicles? At Loans Canada we offer loans that will suit your financial requirements better than any bank would. Get affordable interest rates and flexible repayment plans that work with your business.
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Loans Canada is pleased to announce it placed No. 131 on the 2022 Report on Business ranking of Canada’s Top Growing Companies.
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