Garage & MOT Centre
Financing
Explore business loans and sales-linked funding for workshop equipment, parts, premises and working capital. Speak to PDQ Funding.
Garage and MOT Centre Business Finance Made Simple
Parts need paying for, a ramp can fail without warning, and wages still fall due when the workshop is quieter. Garage and MOT centre finance can help you plan an investment or bridge a short-term gap. Start with the amount needed, its purpose and what the business can afford.
Before choosing a repayment structure, compare merchant cash advances versus business loans and review merchant cash advance costs.
Workshop equipment
Plan for diagnostic tools, vehicle lifts, brake testers or tyre-changing equipment. Include installation and maintenance in your budget.
Parts & working capital
Cover a timing gap between buying parts, completing repairs and receiving customer payments, while keeping essential bills in view.
Premises & capacity
Cost a reception refit, an additional service bay or workshop improvements against the extra work they could support.
Skills & new services
Budget for technician training, software subscriptions and tools needed to introduce services such as hybrid and electric vehicle work.
Compare garage business loans and cash advances
Business loans for garages
A business loan provides an agreed sum, repaid over a set term. It can help you plan spending on equipment, refurbishment or working capital. Compare the full repayment schedule, interest, fees and security requirements.
For a specific item of machinery, ask whether equipment finance is also worth comparing. Check the deposit, ownership arrangements and total cost against buying outright.
Merchant cash advances
A merchant cash advance provides upfront funding with collections linked to qualifying card sales. The amount collected can rise and fall with takings, rather than following the same monthly instalment.
The funding fee and sales deduction are different figures. Read the agreement for collection arrangements, any minimum payment obligations and the total amount payable. Lower sales do not remove the commitment.
How much could your garage receive? Providers assess trading history, turnover, card sales, existing commitments and affordability. An available amount can only be confirmed after assessment; ask for the offer in writing.
Understand the cost before you commit
Compare the money your business receives with the total it must pay back. Check all fees, the repayment method and what happens if you settle early.
Illustration: £15,000 of funding plus a £3,000 fixed fee gives a total commitment of £18,000. If the agreed collection rate were 10%, an £800 qualifying card-sales day would contribute £80, leaving £720 before processing charges and operating costs.
These invented figures are not a quote. The collection percentage is not an interest rate. Test any offer against wages, parts, rent and tax commitments in both normal and quieter trading periods.
Check guarantees and security
An unsecured facility may still require a personal guarantee. This can make you personally liable if the business does not meet its obligations. Understand the limit and terms of any guarantee, and consider independent advice before signing.
What will a provider assess?
Providers look at the business behind the application: how long it has traded, its income, current commitments and ability to repay. They may also review business or personal credit records.
A previous credit issue does not establish whether a particular provider will make an offer. Explain the circumstances accurately and ask which searches will be carried out before proceeding.
Get your information ready
- Recent business bank statements and accounts.
- Merchant statements if applying for card-sales-linked funding.
- A breakdown of existing finance commitments.
- The funding purpose and any supplier quotations.
Document requirements vary. Read our business credit score guide if you need to check your records before applying.
Garage and MOT finance questions
Can I get a business loan for a garage or MOT centre?
An established garage or MOT centre can enquire about business funding. Availability depends on the provider, your trading figures, existing commitments and affordability. Acceptance and the amount offered are not guaranteed.
Do I need card sales to apply?
Regular card sales are relevant to a merchant cash advance. A business loan may be assessed differently. Tell us how customers pay so the enquiry can be considered against appropriate provider criteria.
Can finance cover MOT equipment and workshop upgrades?
Equipment and workshop improvements are possible funding purposes. Get a supplier quotation covering the equipment, installation and associated costs, then confirm that the proposed facility permits the intended use.
How quickly can garage finance be arranged?
Timing depends on the product, provider and completeness of your application. Have bank statements, trading figures and any supplier quotes ready. Do not commit to a purchase on the assumption that funding will arrive by a particular date.
What does PDQ Funding charge?
PDQ Funding does not charge you a fee for using its brokerage service. We receive commission from a lender following a successful introduction. The provider’s funding costs and terms will be set out in any offer.
Get a quote for your garage or MOT centre
Tell us what you need to fund, how your garage trades and your average monthly card sales. We review your enquiry and explain the next steps, including any information a provider needs.
If an offer is available, review its total cost, repayments and guarantees before deciding. PDQ Funding is a broker, not a lender; the provider makes the funding decision.
Complete the online enquiry form or call 01246 233108. There is no obligation to proceed.
Your funding enquiry
Share your business details and funding needs. Funding is subject to the provider’s assessment and terms.