Automotive & Equipment
Business Funding for Collision Centers
Collision repair is a high-ticket business, but the money flows slowly. Insurance companies control the purse strings, and DRP (Direct Repair Program) agreements dictate labor rates and parts sourcing. A proper collision center needs paint booths, frame machines, and welding equipment that can cost $500,000 or more to install. Shops that invest in ADAS calibration and aluminum repair capabilities position themselves for the newer vehicles that are increasingly complex to fix.
Common Uses
What Collision Centers Use Funding For
- Install or upgrade paint booths, mixing systems, and downdraft ventilation
- Purchase frame straightening machines and computerized measuring systems
- Add aluminum repair capabilities including dedicated tools and clean rooms
- Fund ADAS calibration equipment for post-collision sensor recalibration
Funding Options
Best Funding Types for Collision Centers
Equipment Financing
Finance paint booths ($50,000 to $200,000), frame machines ($30,000+), and spot welders. Collision equipment is specialized but retains value, and industry-focused lenders like Gailus Financial know the resale market well.
SBA 7(a) Loan
Best for acquiring an existing collision center or doing a major facility upgrade. SBA loans can cover the real estate, equipment, and working capital needed to modernize a shop for today's vehicle construction materials.
Working Capital Loan
Bridge the gap between completing repairs and receiving insurance payment. Collision shops regularly wait 30 to 45 days for insurance reimbursement, and working capital keeps the shop running between payments.
What Lenders Look For
Qualification Notes for Collision Centers
Related Industries
Related Automotive & Equipment Funding
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