4 Business Loans for Automotive Business
The automotive business is a booming industry with 95 percent of American households owning cars. It requires a tremendous upfront investment in order to launch and operate the business effectively. Whether you work in manufacturing or car sales, you’ll require extensive equipment and machinery to perform the basic duties of the job. In addition to upfront costs, you’ll need consistent capital to grow as a business and expand your operations. With business loans for automotive business, you can get the money needed to effectively cater to the millions of U.S. drivers.
1. U.S. Small Business Administration (SBA): The SBA offers government-backed business loans to small companies in a wide variety of industries. Since the loans are partially secured by the government, they have more lenient eligibility requirements for applicants. The SBA offers financing options for small manufacturing companies, including the leasing and financing of large machinery. In order to apply, they require a strong business plan that clearly outlines how the money will be spent. The business plan needs to emphasize your goals as a business, your projected returns, and how you intend to create those returns.
2. Private Equity Investors: Private equity is a type of investment capital where equity investors capitalize on new business opportunities and seek to profit off of their success. These investors are more concerned with your business plan than they are your past finances. They want to see a highly detailed plan that includes accurate projected returns and a dependable method of achieving those returns. These are usually much larger investments, often starting around $250,000, enabling you to get all of the money needed to start a successful automotive business.
3. Equipment and Vehicle Loans: No matter what part of the automotive industry you’re employed in, having the right equipment is integral to your success. With an equipment and vehicle loan, you can get up to $10,000 to invest in the equipment you need. Equipment loans are offered through banks, with terms varying depending on the bank. They are long-term loans with repayment plans up to 5 years and come with a fixed monthly payment plan. Banks offer the lowest interest rates available, making them the most cost-effective option for securing funding.
4. Working Capital Loans: Working capital loans offer businesses of all sizes access to capital to expand their business and address immediate needs and opportunities. These short-term loans provide businesses with a lump sum of cash given upfront, which is then repaid, along with the interest rate, over a set time period of time. The loan amounts are often smaller in size, and the repayment period is shorter. With working capital loans, businesses get fast access to money without any in-depth paperwork to fill out, and a good credit score isn’t necessary to qualify.
The automotive business is an expensive industry to work in and one that requires ample capital in order to purchase and maintain the vast array of needed machinery. Fortunately, there are a variety of lenders who are eager to help strengthen and enhance automotive production in the U.S., allowing automotive workers to access large, low interest loans with easy repayment terms. Grow your business by securing the money you need to thrive. For modern business funding solutions, contact Credibly.